Revenue Committee hears proposal to let Nebraska 529 (NEST) pay K–12 tuition; sponsors and treasurer back expansion, education groups split

Senator Tony Sorrentino opened the hearing on LB 131 by saying the bill would conform Nebraska law with federal changes that allow 529 plans to be used for K–12 tuition, and would permit Nebraska taxpayers to use the Nebraska Educational Savings Trust (NEST) to make tax‑favored withdrawals up to $10,000 per beneficiary per year for elementary and secondary tuition. "LB 131 allows Nebraskans the opportunity to save money for their children or grandchildren's education," Sorrentino said.

Deputy State Treasurer Rachel Beyer, who manages the NEST program, told the committee Nebraska’s program holds about $7.26 billion in assets with more than 301,000 accounts and a strong in‑state participation rate. Beyer said the state’s plan is at a competitive disadvantage if it does not permit K–12 withdrawals because families and financial advisors choose plans that allow the broader federal eligibility. She challenged assumptions…