Nebraska Governor Jim Piren (R) signed an executive order on Monday declaring that the state will participate in a federal tax credit program for scholarships. This program was established through a significant bill passed earlier in the summer.
While at St. Teresa Catholic School in Lincoln, amidst students, parents, and state legislators, Piren expressed that the initiative aims to create resources that could be transformative for students and their families, facilitating access to their preferred educational institutions.
“We need to ensure that all students learn in environments that help them thrive. This program provides that chance, and we are pleased to have Nebraska join,” Piren mentioned.
The Federal Scholarship Tax Credit enables taxpayers to receive a dollar-for-dollar credit on federal income taxes by contributing up to $1,700 to a recognized scholarship granting organization (SGO). These funds are then distributed to families, potentially helping cover K-12 education expenses for those choosing private schooling. To qualify for a scholarship, family income must be up to three times the local median. States must actively opt into the program.
“This initiative could mean that up to 90% of K-12 students in Nebraska, regardless of their current educational setting, might qualify for generous scholarships,” noted Rep. Adrian Smith (R-NE), who backed the proposal.
“Our students represent the future, and I championed the inclusion of this law within the tax cut plan to enhance educational opportunities, allowing our kids to mature into responsible adults. Thanks to Governor Piren opting into the program, Nebraska families can take advantage of significant financial contributions that the initiative could generate,” he added.
The governor’s office highlighted that Nebraska is one of only two states lacking a formal school choice program. While the state legislature did pass a bill in 2023 to implement its own tax credit program for school choice, it was retracted in 2024 and substituted with a program overseen by the state treasurer’s office. Later that year, voters attempted to abolish this law, leading to significant campaigning from local teachers unions.
“Teachers’ unions have consistently fought to hinder lawmakers’ attempts to bolster educational choices at the state level. This new federal program is a crucial advancement toward granting them the educational freedom that the state has not provided,” a spokesperson stated.
The Nebraska Education Association (NSEA), a teachers’ union, countered that Piren’s decision undermines the evident wishes of Nebraska’s voters. NSEA President Tim Royers remarked, “The governor’s recent announcement aligns with a federal initiative that circumvents public input and threatens the public schools serving most students in the state. It reflects a concerning departure from the established values of Nebraska regarding fair and quality education.”
A local nonprofit advocating for education remarked, “Nebraska voters made their stance clear by rejecting private school vouchers at the polls.”
Meanwhile, the American Federation for Children, a pro-school choice organization, praised the decision to join the federal program. They stated, “School choice has arrived in Nebraska, and it’s a welcomed move for families seeking better educational options. Today’s announcement signifies that our efforts are bearing fruit. We commend the dedicated advocates, including Governor Piren and all the parents who are striving for the best for their children.”
Piren indicated that his administration plans to collaborate with school choice supporters to compile a list of qualified SGOs for the Treasury’s consideration by January 1, 2027.
