This bill amends the Revised Statutes Supplement, 2025, to enhance the Nebraska educational savings plan trust by introducing provisions that allow trust funds to be used for recognized postsecondary credential programs, in addition to existing uses for eligible postsecondary educational institutions. It redefines terms related to qualified education expenses to explicitly include qualified postsecondary credentialing expenses and establishes a new definition for recognized postsecondary credential programs. The roles and responsibilities of the State Treasurer and the state investment officer in managing the trust's funds and investments are also clarified. Additionally, the bill modifies participation agreements to allow beneficiaries to be designated for both postsecondary educational institutions and recognized credential programs, while also allowing for flexible contributions and amendments based on changing circumstances.

Starting January 1, 2029, the bill expands the use of funds to cover expenses for elementary and secondary schools, broadening the scope of educational funding available to beneficiaries. It establishes the Education Savings Plan Expense Fund, funded by fees from the program fund, to cover costs related to the educational savings plan trust and other associated expenses. Significant changes include allowing remaining funds in a participant's account to be used for qualified education loan payments for siblings of the beneficiary if the beneficiary graduates from an eligible institution or program. The bill also clarifies that payments for qualified education expenses will be owned by the educational institution or program at the time of payment and expands eligibility for the educational savings plan to include both resident and nonresident participants, recognizing the portability of funds for various educational institutions and programs.

Statutes affected:
Introduced: 77-1416, 77-1417, 77-1419, 77-1420, 77-1422, 77-1427