Zach Wendling
LINCOLN — Nebraskans with disabilities would be able to apply for expanded savings accounts propelled by tax breaks for private donations to a new state fund aimed at boosting them, under a new legislative proposal.
Legislative Bill 391, from State Sen. Dave Murman of Glenvil, would adopt the Give to Enable Scholarship Act. It would expand the current Achieving a Better Life Experience (ABLE) Program, federally enacted in 2014 and authorized in Nebraska the following year, by creating a new fund to supplement the private donations already made to individual savings accounts used to pay for disability-related expenses.
Individual savings accounts for those expenses can already be created today, and donations to those accounts are tax-deductible, up to $5,000 a year per donor. Murman’s bill seeks to draw more donations from donors who could choose to support the broader pool of account holders, rather than an individual.
Individuals with disabilities are limited in assets or savings they can have in their name before eligibility for benefits like Medicaid or Social Security Income is impacted — $2,000 — under federal law.
Up to $100,000 can be included in Enable Savings Accounts before benefits are impacted.
“The Enable Savings Plan has been life-changing for many Nebraskans with disabilities, having a place to save money, no longer having to needlessly spend money to keep under resource limits, encouraging independence and building confidence,” Murman told the Revenue Committee at a public hearing Thursday.
Eligible individuals can open an ABLE account at any time if the person’s disability exists when the account is opened and the onset of the disability happened prior to the individual’s 26th birthday (or 46th birthday, come Jan. 1, 2026).
Qualified disability expenses include:
- Education.
- Housing.
- Transportation.
- Employment training and support.
- Assistive technology and personal support services.
- Health, prevention and wellness.
- Financial management and administrative services.
- Legal fees.
- Expenses for oversight and monitoring
- Funeral and burial services.
Murman pointed to service dogs or handicapped-accessible vehicles as examples of costs people might use the expanded accounts for, which are expensive but might not be covered by insurance.
Edison McDonald, executive director of the Arc of Nebraska, the largest statewide organization supporting individuals with intellectual and developmental disabilities, said the bill would strengthen financial stability for individuals with disabilities.
He said it would also increase opportunity and reinforce Nebraska’s place in disability inclusion.
“The Enable Savings Plan has been an essential tool for promoting self-sufficiency, and LB 391 is a natural extension of that success,” McDonald said.
Because the bill included “scholarship” in its title, it concerned some opponents of private school vouchers.
McDonald said that while the accounts can be used for education expenses, it is “not a back-door attempt” to vouchers, which the Arc of Nebraska opposes.
He said the law offers a “fiscally responsible, community-driven solution that expands opportunities without additional government spending programs.”
Stacy Pfeifer, who manages the Nebraska ABLE Program in the State Treasurer’s Office, said her agency is currently managing nearly 4,000 accounts with more than $49 million in assets.
About 68% of those accounts, and 66% of assets, belong to Nebraska residents.
That’s because when the state first enacted the federal law in 2015, it was among the first in the nation, and people around the country utilized and have continued to utilize the Nebraska benefits.
“The Nebraska Treasurer’s Office is honored and humbled to be able to help individuals in this way, and we look forward to helping them more,” Pfeifer said.
Preifer said one-fifth of Nebraskans with disabilities, ages 18 to 64, live in poverty. At the same time, it costs about 28% more for individuals with a disability to live in Nebraska.
The legislation would be a next step for the Treasurer’s Office in expanding the ABLE Program, after launching an online crowdfunding program in August, allowing donations to similar savings accounts for specific high-dollar expenses, such as service dog training.
Pfeifer said some individuals in poverty don’t have the means to participate in that program but that the application process for the pooled program could help the Treasurer’s Office reach more people.
If enacted, LB 391 would take effect Jan. 1, 2026. Individuals could apply for an account in the first five months of each year, and the state treasurer could approve as many applications for the program as funds allow.
“The Enable Program is, for some Nebraska families, not just another benefit but an economic lifeline, and, as the name implies, a way to empower Nebraskans to achieve a better life experience,” Murman said. “This bill is just one of the ways I hope we can strengthen it.”