Nebraska lawmakers propose tax-funded school choice bill

After NE voters petitioned to put last year's Opportunity Scholarships Act on this year's ballot, lawmakers advanced a bill to directly fund private schools with tax money.

The law passed last year by Nebraska's officially nonpartisan Legislature did not appropriate taxpayer dollars directly to private school tuition. Instead, it allowed businesses and individuals to donate as much as $100,000 per year of their owed state income tax to nonprofit organizations that award private school tuition scholarships. Estates and trusts could donate as much as $1 million a year. That dollar-for-dollar tax credit is money that would otherwise go into the state’s general revenue fund.

The law triggered an immediate pushback from public school advocates who blasted the measure as a "school voucher scheme" that would hurt enrollment, and therefore funding, for public schools and would allow taxpayer dollars to go to private schools that are allowed under religious tenets to discriminate against LGBTQ+ students.