NE: Trying To Get Vouchers Past Voters

Nebraska's voucher fans are bound and determined, like legislators in many states, to get around the voters so they can get vouchers installed.

In May of 2023, Nebraska’s Governor Jim Pillen signed into law LB 753, creating tax credit vouchers for subsidizing private schools.

The concept has been floated in Nebraska before, notably turning up more than once in 2022’s session. In 2023, it finally progressed through the legislature. But NSEA political action director Brian Nikkelson told the Nebraska Examiner that the public did not support the vouchers, and if the bill was passed, there would be a petition drive to force the bill to go on the ballot for voters to decide.

And so there was. It was a heck of a battle, with the pro-voucher forces have attracting a mountain of money, some of it from outside the state. Paul Hammel at the Nebraska Examiner reported that big money contributors include C.L. Werner, an Omaha-based trucking company executive ($100,000), Tom Peed and his son Shawn of a Lincoln publishing company ($75,000 each), and former Nebraska governor U.S. Senator Pete Ricketts ($25,000). Governor Pillen himself has contributed $100,000 to the campaign to save vouchers from a vote.

At the same time, Hammel reported, the American Federation for Children, the school choice advocacy group founded by Betsy DeVos, has contributed $103,000 in in-kind services and $583,000 in cash to the campaign.

It didn't matter. Support Our Schools needed 60,000 signatures to force a referendum. They ended up with about twice that number (that's roughly 10% of all eligible voters in the state). So this November, the voters of Nebraska were supposed to have their say. So you'd expect that voucher fans, who keep telling us how much everyone loves vouchers, would just sit back, secure in the knowledge that their program would win the referendum handily.

Well, no.

Instead, legislators cooked up LB 1402. This bill proposed to repeal the Opportunity Scholarships that were created under LB 753, and then to replace them with a new version of Opportunity Scholarships. This version would have been an education savings account (ESA) style super-voucher that hands over taxpayer money to send a student to a private or parochial school. It was more sketchy than last year's bill because it appropriates state funds (rather than tax-credited contributions) to pay for the vouchers.

But mostly what it did it render the petition drive moot, because it repealed the version of vouchers that the public was going to vote on. "Ha," they apparently thought. "That'll stop those damned voters."

In 67 days, the coalition of opponents gathered the necessary signatures—again. That repeal passed in November 2024, with 45 out of 49 legislative districts voting to repeal, and Nebraska's voucher law was toast. The voters had sent a clear and unequivocal message. 

Surely the state's leaders would say, "Well, the voters have spoken, so that's that."

Fat chance.

Voucherphiles were back with a new proposal in January 2025. “I’m not dissuaded by the fact that it was defeated at the ballot box,” said freshman State Sen. Tony Sorrentino of Omaha. 

To nobody's surprise, Governor Jim Pillen was first to jump on the as-yet-rule-free federal school voucher proposal. Okay, it was a small surprise, because Nebraska is not known for grabbing federal dollars, but hey-- this is Free Federal Money for private schools. In fact, U.S. Rep. Adrian Smith, R-Neb., helped Congress usher the tax credits provision onto President Donald Trump’s desk, even though his home district was among those shooting down vouchers in 2024. 

Pillen's new idea is to sell vouchers for the "gap" year, the year between the time when Nebraska's vouchers are required to end and the time when the federal vouchers are supposed to kick in. The proposal is being sent through the state's Labor Department rather than the Department of Education because that would skirt the requirement for any sort of hearing or debate, probably because voucherphiles have a pretty good idea of how that would go. 

Nebraska is one of those states where rural Republicans have opposed all attempts at vouchers, and they aren't sounding any friendlier about this one. Zach Wendling at Nebraska Examiner talked to State Sen. Tom Brandt of Plymouth, a Republican who opposed Linehan’s previous proposals; he said he is opposed to using any public money for private school choice. He’s still waiting to see how the federal tax credit program includes public schools (because, remember, there are no actual rules yet attached to the federal voucher program). 

“The referendum simply eliminated that. Period, end of story,” he continued on the state policy. “There’s no other interpretation you can draw from that.”

The gap funding would cost about $5 million for around 2,500 students. Of course, with no rules in place, it's possible that not all of Nebraska's current voucher students would qualify for federal vouchers. Nor can we predict what slice of the federal money pie Nebraska would be entitled to. If it comes to that, we could expect voucherphiles to argue that more gap funding is needed to cover new gaps, or maybe to expand above and beyond the federal offerings. 

Nebraska voucher fans are making a lot of "think of the children" noises, but families have plenty of time to look for new arrangements (i.e. finding the student a new school or going back to paying the full tuition with their own money). 

This is the same story we've seen over and over again. Vouchers never win when voters have a chance to be heard. Every single taxpayer-funded voucher program in this country has been created without giving the taxpayers a say or ignoring the say they had already said. Taxpayer-funded vouchers are all the result of legislators backed by deep-pocketed voucher fans deciding they are going to inflict these on the taxpayers. Nebraska's taxpayers just happen to have a few more tools to fight back with, but Nebraska's voucherphiles just keep looking for a way to avoid that whole pesky democracy thing.