Nebraska Education Funding Programs (2026): Why the Scholarship Program Ended and Nebraska Exempt (Home) School Rules
Nebraska voters repealed the LB 1402 private school scholarships in Nov. 2024 (Referendum 435). What is left for families, plus exempt school filing by July 15. Updated Nov 1, 2026.
Last updated: November 1, 2026. We checked the Nebraska Department of Revenue Opportunity Scholarship Act page, the 2024 official general election canvass, the LB 1402 bill page and the Nebraska Department of Education Exempt School Program pages. This is general information, not legal, tax or financial advice.
Nebraska passed two private school choice laws in two years, and both are gone. As of November 1, 2026, Nebraska has no state-funded scholarship, voucher, ESA or tax-credit scholarship program for K-12 families.
Here is what happened, what still exists for families (including a federal tax credit that starts in 2027) and how homeschooling works in Nebraska, where home schools are called exempt schools.
This guide is part of our series on state education funding, which starts with the hub guide, State Education Funding Programs for Parents. If you are brand new to the idea, our step-by-step guide to starting homeschooling covers the basics that apply in every state.
Quick answer: Nebraska has no active state program that helps pay private school or homeschool costs. The 2023 Opportunity Scholarships Act (LB 753) tax credit was repealed by LB 1402, effective October 31, 2024. LB 1402’s replacement scholarship program was then repealed by voters through Referendum 435 on November 5, 2024, 57.03% to 42.97%. Nebraska has opted into the federal Scholarship Tax Credit, which starts January 1, 2027. To homeschool, you file an exempt school election with the Nebraska Department of Education by July 15 each year and provide at least 1,032 (elementary) or 1,080 (secondary) hours of instruction.
Nebraska’s Programs at a Glance
| Program | Status as of Nov. 1, 2026 | Source |
|---|---|---|
| Opportunity Scholarships Act (LB 753, 2023): tax credit for gifts to scholarship groups | Repealed by LB 1402, effective October 31, 2024 | Nebraska Department of Revenue |
| LB 1402 (2024): state-funded private school scholarships | Repealed by voters, Referendum 435, November 5, 2024 | Official 2024 canvass |
| Federal Scholarship Tax Credit (Section 25F) | Nebraska is a participating state for 2027 | IRS participating states |
| Exempt (home) schools | Legal; no state funding | Nebraska Department of Education |
What Happened to LB 753 and LB 1402
In 2023, Nebraska passed LB 753, the Opportunity Scholarships Act. It gave donors a state income tax credit for gifts to scholarship-granting organizations, which then funded private school scholarships.
In 2024, the Legislature passed LB 1402. It repealed LB 753 and replaced the tax credit with scholarships paid directly from state funds. The Department of Revenue says the Opportunity Scholarships Act was repealed effective October 31, 2024, and it no longer accepts applications from scholarship groups. Donors who gave between January 1 and October 30, 2024 may have earned a credit they can carry forward for five years.
Opponents then petitioned LB 1402’s scholarship section onto the ballot as Referendum 435. According to the official 2024 canvass, voters chose to repeal it on November 5, 2024, by 508,140 votes (57.03%) to 382,921 (42.97%). That ended the state-funded program.
Recent Changes and Status (as of November 2026)
- No state program: after Referendum 435, Nebraska has no state-funded private school choice program as of November 1, 2026.
- Federal Scholarship Tax Credit: beginning January 1, 2027, the IRS says individuals can claim up to $1,700 ($3,400 for married couples filing jointly) for gifts to approved scholarship-granting organizations in participating states. Nebraska is on the IRS list of participating states dated October 22, 2026. Scholarship groups on Nebraska’s approved list will set their own family eligibility rules within federal limits, so watch for them in 2027.
- Homeschool reporting changes: the 2026/27 Exempt School FAQ says LB 1027 (2024) changed Rule 13. For example, curriculum information no longer has to be reported to NDE. New statute changes took effect July 18, 2026, including a rule that people monitoring or teaching in an exempt school must not have certain felony convictions (Exempt School Program page).
Homeschooling in Nebraska: Exempt School Rules
Nebraska calls home schools “exempt schools.” They are private schools that choose not to meet state approval or accreditation requirements under Section 79-1601. The Exempt School Program page and 2026/27 FAQ set out the steps.
- File a Statement of Election and Assurances with NDE online or by mail by July 15 each year the school will operate. Families who move to Nebraska after July 15, or decide to homeschool later, should file promptly.
- Each parent or guardian signs the statement, and a parent representative is named.
- Provide at least 1,032 hours of instruction a year for elementary grades or 1,080 hours for secondary grades. You set your own calendar.
- A child who is 6 can delay entry until age 7 if the parent files an affidavit with the resident school district; otherwise, file for exempt status for that child.
- Curriculum details no longer have to be reported to NDE.
NDE says about 18,015 students were in exempt schools at the end of 2025/26 (an estimate pending audit). For other states, see our guide to homeschool laws by state.
Questions to Ask Before You Choose a School
- Does the private school offer its own need-based tuition aid?
- Will the school take part in the federal scholarship tax credit program through an approved scholarship group in 2027?
- If you are homeschooling, have you filed your exempt school election for this school year?
- If you plan to return to public school later, how will the district place your child?
Frequently Asked Questions
Does Nebraska have school vouchers or ESAs?
No. As of November 1, 2026, Nebraska has no voucher, ESA or state-funded scholarship program.
What was Referendum 435?
A November 5, 2024 ballot measure on LB 1402’s state-funded private school scholarships. Voters repealed it, 57.03% to 42.97%, according to the official canvass.
Is the Opportunity Scholarships Act tax credit still available?
No. The Nebraska Department of Revenue says it was repealed by LB 1402 effective October 31, 2024.
Is Nebraska part of the federal scholarship tax credit?
Yes. Nebraska is on the IRS list of participating states for 2027, dated October 22, 2026.
When do I file to homeschool in Nebraska?
File the exempt school election with NDE by July 15 each year the school operates, or promptly if you move or decide later.
Sources
We checked each of these official pages on November 1, 2026. Rules and dates change, so confirm anything important with the agency before you rely on it.
- Nebraska Department of Revenue: Opportunity Scholarship Act (repealed)
- Nebraska Legislature: LB 1402 (2024)
- Nebraska Secretary of State: 2024 General Election Official Canvass
- Nebraska Department of Education: Exempt School Program
- Nebraska Department of Education: 2026/27 Exempt School FAQs
- IRS: Federal Scholarship Tax Credit
- IRS: FSTC participating states for 2027
Looking for another state? Go back to the State Education Funding Programs for Parents hub for the full list of state guides.
