The program gives those who donate to nonprofits that offer educational scholarships to students a dollar-for-dollar tax credit up to $1,700 per year. The money can be used at public, private and parochial schools for expenses such as tuition, fees, tutoring, computer equipment and supplies.
By Dennis Kellogg
Director of Communications
Nebraska has officially opted into the federal scholarship tax credit school choice program that was part of the federal budget reconciliation legislation known as the “One Big Beautiful Bill Act” passed by Congress and signed into law by President Donald Trump this summer.
The first-of-its-kind national school choice program will take effect Jan. 1, 2027. It is based on the Educational Choice for Children Act and requires states to opt in to participate, which Nebraska Governor Jim Pillen did at a news conference Sept. 29 at St. Teresa School in Lincoln.
“I am not opting this in, I’m cannonballing it in,” Pillen said as he stood in front of a group of students, with more students, teachers, administrators and diocesan leaders sitting in the school gymnasium bleachers, looking on. Representative Adrian Smith, who has prioritized federal school choice legislation in Congress for a number of years and championed the effort to include it in the reconciliation bill this year, and Representative Mike Flood joined the governor in making the announcement.
The federal school choice program gives those who donate to nonprofits that offer educational scholarships to students a dollar-for-dollar tax credit up to $1,700 per year. The money can be used at public, private and parochial schools for expenses such as tuition, fees, tutoring, computer equipment and supplies.
“We have to have great public schools,” Pillen said. “We have to have great St. Teresas. And because of this legislation, both can win…. We’re never, ever going to give up on a kid anywhere.”
Pillen noted Nebraska is currently one of only two states to not have school choice options for families. He said school choice is “about fit.”
“There’s a lot of kids who are in public education in a great school, and it’s not the right fit. They need help. Same thing happens; not every private school is perfect. When a kid doesn’t have the right fit, they have the opportunity to choose and go to a public school. That’s what school choice is all about.”
Representative Smith said the legislation focuses on the future for all students.
“The scholarship granting organizations will wrap themselves around the needs of kids,” Smith said. “That could be in a public school setting when a child needs a tutor but can’t afford the expense of a tutor. That could be a homeschooling situation. Really, it’s about flexibility and empowerment for families, for students, so that they can achieve the most they possibly can.”
Sarah Schinstock of Lincoln said scholarships have made a huge difference for her family. She and her husband Jeff have seven children. Their oldest daughter has a severe disability. That daughter attended Lincoln Public Schools, while the others either attended or currently attend Catholic schools. Schinstock said scholarships have allowed the family to make sure they can find the right educational fit for each child.
“This federal school choice program will help create more impactful scholarship opportunities for families across Nebraska, especially families who struggle to make ends meet, or families who never thought it would be possible to have different educational options,” Schinstock said. “I’m confident that Governor Pillen’s decision to opt into the federal school choice program will be transformative for our family and so many others.”
The effort to bring school choice to Nebraska has been ongoing for years and has been fought in the Legislature, the courts and at the ballot box. In 2023 and 2024, two programs provided nearly $18 million in scholarships to approximately 8,000 students. One was repealed by the Legislature in a move to adjust the school choice funding mechanism, and the other was repealed by voters.
Tom Venzor, executive director of the Nebraska Catholic Conference, said even with the announcement to opt in to the federal program, there is still more work to be done.
“This is definitely not the end of our battle for school choice in Nebraska,” Venzor said. “This is one major step as we move forward to advocate for parents, for families, for kids across the state of Nebraska.
“This is going to be a huge opportunity for all of our Catholic schools to be able to talk to more families to give them scholarship opportunities to make sure they know they can be educated in our schools,” he continued.
Representative Flood said Nebraska has great public and private schools, and parents who are willing to sacrifice for their children’s education.
“But what happens is not every family in Nebraska has that extra money, and those kids and those parents, they want to be here, too,” Flood said to the students. “So, what Adrian’s bill has done, and the governor’s signature today is going to do, is let more of your friends and neighbors and their parents pick the school that they want to go to.”
Flood, who was educated for 16 years in Catholic schools, told the students whatever their vocation will be is grounded in what they see today.
“I want to thank the Diocese of Lincoln that has cultivated a vocational environment where we have priests and nuns teaching in our schools,” Flood said. “You are really in one of the best places in America to go to a Catholic school. You are surrounded by people that have devoted their lives to Christ, whether they’re married or in a vocation. They are here and you get to benefit.”
SNR photos | Natalie Bender Click for more photos
