Nest program expansion advanced

Senators gave first-round approval Feb. 10 to a bill that would expand eligible uses of Nebraska educational savings plan trust accounts.

Under LB748, introduced by Elkhorn Sen. Tony Sorrentino, families could use NEST accounts for education-related expenses beyond K-12 and postsecondary tuition, including books, tutoring and online instructional materials, beginning Jan. 1, 2029.

The bill would increase the annual withdrawal cap from $10,000 to $20,000 and expand eligible uses to qualified postsecondary credentialing programs, such as career and technical certifications.

Additionally, the measure would allow the State Treasurer’s Office to enter agreements with recognized postsecondary credentialing programs, excluding those related to investment of program funds, and to make payments directly to those programs on behalf of beneficiaries.

Sorrentino said LB748 would align Nebraska law with federal changes to 529 plans enacted in July of 2025 as part of the One Big Beautiful Bill Act, provide uniformity and make Nebraska’s 529 program more attractive to families nationwide, potentially increasing participation and state revenue.

Seward Sen. Jana Hughes spoke in support of the measure, saying it would help families afford rising education costs, including things like room and board, which, she said, has risen in recent years at University of Nebraska campuses.

Sen. Fred Meyer of St. Paul also supported LB748. Nebraska needs to ensure that students and parents can access the education that best suits their needs, he said.

Lincoln Sen. Danielle Conrad said the measure offers practical benefits and highlights that career paths are not limited to the traditional four-year college route.

“I think that is very good for addressing workforce challenges and providing additional opportunities for Nebraskans to utilize a pathway for building careers in the trades,” she said.

Conrad noted, however, that 529 plans tend to benefit wealthier families and can be harder for rural and less wealthy families to access.

Lawmakers advanced LB748 to select file on a 29-0 vote.