This legislative bill amends the Revised Statutes Supplement, 2025, to enhance the Nebraska educational savings plan trust by broadening the scope of eligible uses for trust funds. Key changes include the addition of provisions that allow funds to be utilized for recognized postsecondary credential programs, alongside existing uses for eligible postsecondary educational institutions. The bill redefines "qualified education expenses" to include expenses for these credentialing programs and establishes a new definition for "recognized postsecondary credential program" in accordance with the Internal Revenue Code. Additionally, it outlines the responsibilities of the State Treasurer as the trustee, granting authority to enter into agreements with recognized credential programs and specifying that, starting January 1, 2029, funds may also be used for payments to elementary or secondary schools.

The bill also introduces the Education Savings Plan Expense Fund, which will be funded by fees from the program fund and managed by the State Treasurer to cover costs associated with the educational savings plan trust. It mandates annual reporting by the State Treasurer on transfers to the State Investment Officer's Cash Fund for investment management expenses. Furthermore, the amendments expand eligibility for the Nebraska educational savings plan trust, allowing participants to retain ownership of contributions until used for qualified education expenses and clarifying that funds can be used for qualified education loan payments for siblings of beneficiaries. The changes emphasize the portability of funds across various educational institutions and programs, benefiting both resident and nonresident participants.

Statutes affected:
Introduced: 77-1416, 77-1417, 77-1419, 77-1420, 77-1422, 77-1427
Final Reading: 77-1416, 77-1417, 77-1419, 77-1420, 77-1422, 77-1427
Slip Law: 77-1416, 77-1417, 77-1419, 77-1420, 77-1422, 77-1427