The Nebraska Legislature once again failed to advance a budget bill Wednesday as senators remained divided over funding scholarships for students attending private and religious schools.
Last week, lawmakers rejected a version of the budget that excluded scholarship funding. On Wednesday, they debated a revised proposal that included about $3.5 million for those scholarships.
The bill also allocated similar funding — $3.2 million this fiscal year and $4.2 million the next — to continue child care subsidies for families earning up to 185% of the federal poverty level, or about $61,000 for a family of four.
Without that provision, eligibility would drop in October to 130% of the poverty level, roughly $43,000 for a family of four.
Sen. Ben Hansen said both provisions caused concern among lawmakers, but including both might offer the best path forward.
“This, in my opinion, is probably the best path forward for this budget, not only to move a budget forward, but to help many of these families with low income children and low income households to be able to live a better life,” Hansen said. “Now, if this does not pass, we may be stuck again and then ultimately ends up in mutual destruction.”
Sen. Bob Hallstrom argued that supporting child care subsidies while opposing scholarships would be inconsistent.
“We’re saying it’s quite all right to spend public funds to benefit those kids and their families at a private run child care, but once they reach age 5, we’re going to abandon them,” he said. “And at the same time, neither the family’s needs or the children’s needs have changed one iota.”
Opponents of the scholarships pointed out that voters repealed a similar program in 2024. Supporters said the funding is meant to bridge a one-year gap before a federal program begins next January.
Sen. Tanya Storer emphasized the temporary nature of the proposal.
“It is not changing the policy in Nebraska on school choice. It is not. It is not. It is a one-time fund to help ensure that students who benefited from the opportunity scholarships previously are not uprooted, and their families are not disrupted, and that those students can have continuancy in their education,” Storer said.
Sen. John Fredrickson countered that the issue goes beyond the funding itself.
“This is not about the $3.5 million for these kids. The proponents of this want this so desperately because they want precedent. Every single person who’s pushing this so hard wants to come back in 5, 10, 15, 20, years and point to the fact that we did this,” he said.
Fredrickson also argued that private donations could cover the short-term need and even offered personal support.
“Don’t be fooled, if you’re watching this at home, that it’s about these kids that are being thrown out of school. They’re not being thrown out of school. If that’s happening, come talk to me. I’ll write you a check for your tuition if you’re gonna be thrown out of school,” he said.
Sen. Loren Lippincott read a letter from a Grand Island school leader warning that removing funding would strain schools and families.
“If this funding were to go away, we would no longer be able to support a number of families who are completely reliant on it… Schools like ours would be placed in an unsustainable position, forced to choose between turning families away or absorbing financial losses that threaten long term stability,” the letter stated.
After two hours of debate, Speaker John Arch called for a cloture vote to end discussion and move forward. The motion required 33 votes but received only 27 — an improvement from last week’s 19 votes, yet still short.
Following the vote, Arch indicated the budget bill would return for further consideration Thursday.
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