Nebraska Commission seeks $1M to restore funding for Opportunity Grant program

The Nebraska Legislature's Appropriations Committee convened on February 27, 2025, to discuss critical funding issues affecting the Nebraska Opportunity Grant (NOG) program. The meeting highlighted significant concerns regarding the program's ability to meet the financial needs of eligible students across the state.

The session began with a report indicating that the NOG program currently serves less than half of the eligible students, with only 13,507 out of over 30,000 receiving aid last year. The average award was noted to be $1,808, which is considerably lower than the financial aid provided by most other states. Nebraska ranks 31st in estimated need-based grant aid for full-time equivalent undergraduates and 36th in the percentage of higher education appropriations directed toward student financial aid.

The commission requested an additional $1 million in general funds for fiscal year 2026 and $2 million for fiscal year 2027, which would allow the program to serve an additional 1,100 students. However, it was acknowledged that such funding is unlikely to be available in the upcoming biennium. The committee was urged to restore $1 million to prevent further decline in support for eligible students.

A significant point of contention arose regarding LB 264, which proposed transferring $5 million from the NOG fund to the Education Future Fund. This transfer was projected to severely harm the NOG program, leading to a reduction in available funds and potentially impacting the distribution of awards to students. The commission presented charts illustrating the declining fund balance with and without the proposed transfer, emphasizing that the current trajectory would necessitate a reduction in awards to institutions.

The discussion also touched on the funding structure of the NOG program, which relies on both general funds and lottery funds. Currently, the program is funded with approximately $8 million from general funds and a total of about $24.5 million available for distribution. The committee was informed that every million dollars in funding translates to approximately 550 students receiving aid. Thus, proposed reductions could result in nearly 1,700 students losing access to financial support over the biennium.

The meeting concluded with a call for the committee to reject the proposed fund transfer and to maintain funding levels to ensure that the NOG program can continue to support Nebraska students in their pursuit of higher education. The urgency of the situation was underscored by the need to meet workforce demands and the state's educational goals. The committee's decisions in the coming weeks will be crucial in determining the future of financial aid for Nebraska's students.