Disability savings program expansion clears first round

A bill intended to incentivize private contributions to a program that helps disabled Nebraskans pay for disability-related expenses advanced from general file May 9.

LB391, sponsored by Glevil Sen. Dave Murman, would create the Give to Enable Scholarship Program and an associated cash fund. The state treasurer would use the fund to establish Enable Savings Plan accounts for qualifying applicants who do not already have an account.

A Revenue Committee amendment, adopted 30-0, replaced the original bill with a slightly modified version. It would rename the program the Give to Enable Support Act.

The tax-advantaged accounts, authorized by the Legislature in 2015, may be used to pay for beneficiaries’ qualifying disability-related expenses, including education, housing, transportation and personal support services.

Murman said the accounts have provided “immense benefits” to more than 4,000 Nebraskans since the original program’s inception. He said the new program would help those who might not otherwise be able to open an account.

Contributions to the accounts are deducted from federal adjusted gross income for state income tax purposes in an amount not to exceed $5,000 per married filing separate return or $10,000 for any other return. Taxpayers who contribute to the new program would receive the same benefit.

Under LB391, the treasurer would determine the minimum amount to place in each new account and could approve as many applications as funding allows each year.

The state Department of Revenue estimates that the bill would reduce state general fund revenue by $137,000 in fiscal year 2026-27, $160,000 in FY2027-28 and $200,000 in FY2028-29.

LB391 advanced to select file on a vote of 34-0.