LINCOLN – The Nebraska State Education Association is expressing serious concern following Gov. Jim Pillen’s announcement that Nebraska will opt into a newly established federal voucher program created under the “One Big Beautiful Bill,” signed into law by President Donald Trump earlier this summer.
Although the voucher initiative is federally authorized, it requires each state's governor to affirm participation. Gov. Pillen made his announcement during an event at St. Teresa Catholic School in Lincoln earlier this afternoon, joined by Congressman Adrian Smith and Congressman Mike Flood.
The program closely mirrors Nebraska’s now-repealed LB753, offering tax credits to individuals and corporations that donate to Scholarship Granting Organizations. However, the federal program operates on a much larger scale, impacting federal — rather than state — tax liabilities. Unlike LB753, it has no cap on total tax credits or on individual voucher amounts.
“Today’s decision by Gov. Pillen undermines the clear will of Nebraska voters, who just rejected state-level vouchers at the ballot box,” said Tim Royers, president of the Nebraska State Education Association. “This federal program is a backdoor voucher scheme that diverts public resources into private systems, without accountability or limits.”
The financial implications are significant. Estimates suggest the program could cost the federal government $30 to $50 billion annually in lost tax revenue. There is no limit on the amount a family can receive in a voucher, and eligibility extends to families earning up to 300% of the area median gross income. In Nebraska, this means households making well over $200,000 per year would be eligible.
"The idea that public funds will subsidize private education for six-figure households while public schools across Nebraska face growing challenges is deeply troubling," Royers said. "This program raises equity concerns, fiscal concerns and policy concerns all at once.”
Unlike public schools, private schools receiving vouchers through this program are not required to serve all students, follow public accountability standards or provide transparency in how funds are used. The lack of restrictions, especially the absence of a financial cap, sets this program apart from previous voucher initiatives.
Additionally, this program may have minimal to no benefit in much of the state, particularly rural communities, where private school options are limited or nonexistent. Yet the fiscal impact - through diverted public dollars and foregone tax revenue — will be felt in every public school district statewide.
Protecting public education is a shared value that transcends party lines. U.S. Senator Deb Fischer recognizes the risks the federal voucher provision poses to public schools. By voting against the provision, Senator Fischer makes clear that support for strong, sustainable public education is not a partisan issue, but a fundamental commitment to students.
Although the program is not scheduled to take effect until 2027, Gov. Pillen’s early announcement signals a significant shift in Nebraska's education policy and finances. The decision comes just months after Nebraska voters rejected voucher legislation at the state level.
“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,” Royers said. “It marks a troubling departure from the values that have long defined Nebraska's commitment to equitable, high-quality public education.”
