Nebraska Opts Into Federal Private‑School Tax Credits
Nebraska Gov. Jim Pillen on Sept. 30, 2025 signed an executive order opting the state into a new federal school‑choice tax‑credit program included in President Trump’s July tax and budget bill, allowing Nebraska taxpayers to redirect up to $1,700 of federal income taxes owed to scholarship‑granting organizations for K–12 private school expenses. The move implements federal tax credits rather than state appropriations, comes after voters repealed an earlier state law to fund private‑school scholarships, and has drawn criticism from the Nebraska State Education Association over eligibility and potential impacts on public‑school funding.
Politics
Education
🔍 Key Facts
- Governor Jim Pillen signed an executive order on Sept. 30, 2025 opting Nebraska into the federal school‑choice tax‑credit program.
- The federal measure allows individuals to direct up to $1,700 in federal income taxes owed to scholarship‑granting organizations to be used for K–12 private school expenses.
- Nebraska teachers' union (NSEA) warns eligibility extends to families earning up to 300% of area median gross income and that households earning more than $200,000 could qualify; the move follows voters repealing a prior state voucher law.
📍 Contextual Background
- Social Security benefits are funded through mandatory spending, meaning the program's funding is provided without an annual expiration and does not require yearly appropriations to continue benefit payments.
- Republicans and Democrats were engaged in negotiations over government funding ahead of an upcoming funding deadline described as occurring on a Tuesday.
- The Government Employee Fair Treatment Act of 2019 provides that government employees automatically receive back pay after a government shutdown.
- Debarment is a federal administrative process that can render an entity ineligible to receive federal grants.
- The U.S. administration announced tariffs of 50% on imported kitchen cabinets, bathroom vanities and associated products, and 30% on imported upholstered furniture, to take effect on 2025-10-01.