Nebraska Considers Expanding College Savings Plan Flexibility

New bill aims to give parents more options for 529 college funds.

Apr. 6, 2026 at 10:38pm

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A bold, colorful silkscreen-style illustration featuring a repeating grid pattern of stacked college textbooks in vibrant neon shades, conceptually representing the diverse educational expenses families can now cover with 529 savings plans.As the costs of higher education continue to rise, a new Nebraska bill aims to give families more flexibility in how they can use their 529 college savings funds.Lincoln Today

The Nebraska state legislature is considering a new bill that would provide more flexibility for parents using 529 college savings plans. The proposed changes would allow families to withdraw funds from their 529 accounts for a wider range of educational expenses beyond just tuition and fees.

Why it matters

As the cost of higher education continues to rise, many Nebraska families rely on 529 plans to save for their children's future college costs. This new legislation could make those savings more accessible and useful for a broader range of educational needs.

The details

The new bill, introduced by state Senator Jill Toliver, would expand the allowable uses of 529 plan funds to include costs like textbooks, school supplies, technology, and even apprenticeship programs. Currently, Nebraska's 529 plans can only be used for tuition, fees, room, and board at accredited colleges and universities.

  • The Nebraska state legislature is currently debating the new 529 plan flexibility bill.
  • If passed, the changes would take effect starting in the 2027-2028 academic year.

The players

Jill Toliver

Nebraska state Senator who introduced the bill to expand 529 plan flexibility.

Nebraska 529 College Savings Plan

The state-sponsored college savings program that would be impacted by the proposed legislation.

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What they’re saying

“Families should have the freedom to use their 529 savings for the educational needs that work best for their children's futures.”

— Jill Toliver, Nebraska State Senator

What’s next

The Nebraska state legislature is expected to vote on the 529 plan flexibility bill in the coming weeks. If passed, the changes would take effect starting in the 2027-2028 academic year.

The takeaway

This proposed legislation reflects a growing trend of states offering more customizable 529 college savings options to help families better plan and pay for the diverse educational paths their children may pursue.