Pillen signed the order while surrounded by students, staff, parents, and Nebraska lawmakers at St. Teresa Catholic School in Lincoln. In a statement, the governor called the program a “game-changer for Nebraska students and their families, generating funds that will help send students to the school of their choice.”
“When it comes to educating our kids, we need to ensure that every student is in an environment that allows them to succeed. This program provides that opportunity, and I’m pleased to say that Nebraska will take part,” Pillen said.
The Federal Scholarship Tax Credit allows taxpayers to receive a dollar-for-dollar credit on their federal income taxes by directing up to $1,700 to a qualified scholarship granting organization (SGO). SGOs will send those funds to families to use them on eligible K-12 education expenses, including costs incurred attending private school. Families are eligible to receive scholarships if their income is not greater than three times the median in the area where they live. States must opt in to the program.
“Through this program, up to 90 percent of K-12 Nebraska students in any educational setting could qualify for scholarships for high-quality resources,” said Rep. Adrian Smith (R-NE), who sponsored the measure.
“Our students are our future, and I championed inclusion of this legislation in the Working Families Tax Cut package to empower parents with greater educational opportunity for their children. Thanks to Governor Pillen’s intention to opt-in to the program, Nebraska families can benefit from potentially billions of donated dollars leveraged by this program,” he added.
The governor’s office noted that Nebraska is one of two states with no formal school choice program. The Nebraska Legislature passed a bill in 2023 to create its own school choice tax credit program, but the law was repealed by lawmakers in 2024 and replaced with a school choice program managed by the State Treasurer’s Office. Voters ended up repealing the law later that year through a ballot effort, which Pillen blamed on a successful campaign waged by left-wing teachers unions.
“The teachers union has tried at every turn to thwart the efforts of our lawmakers to deliver any measurable support for school choice at the state level. And ultimately, that cost has come at the expense of our most vulnerable students,” Pillen said. “This federal program marks a significant step forward in providing them with that educational freedom, at no cost to the state.”
The Nebraska State Education Association (NSEA), a teachers union, claimed in a statement that Pillen’s order “undermines the clear will of Nebraska voters.”
“The governor’s announcement today aligns Nebraska with a federal initiative that bypasses the public process and undermines the public schools that serve the vast majority of our state’s students,” said NSEA president Tim Royers. “It marks a troubling departure from the values that have long defined Nebraska’s commitment to equitable, high-quality public education.”
Nebraska non-profit Stand For Schools made a similar statement, saying, “Nebraskans made their voices heard loud and clear by rejecting private school vouchers at the ballot box.”
In stark contrast, school choice advocacy organization American Federation for Children celebrated the opt-in.
“School choice is coming to Nebraska and soon, to every state. AFC is proud to have stood alongside Nebraska parents and lawmakers for years as they fought for better education options against often overwhelming odds and a power structure with no intention of giving up its monopoly,” AFC CEO Tommy Schultz said. “With today’s announcement, it’s clear that these efforts will prevail. We applaud all the bold champions in the legislature, Governor Pillen, and most of all, every Nebraska mom and dad who stood up for something better for their kids.”
Pillen said his administration will partner with school choice advocates to create a list of qualified SGOs for the Treasury Department to consider for the program before Jan. 1, 2027.
Katherine Hamilton is a political reporter for Breitbart News. You can follow her on X @thekat_hamilton.
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