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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1201
Introduced by Guereca, 7.
Read first time January 21, 2026
Committee: Education
A BILL FOR AN ACT relating to schools; to amend sections 79-1021 and1
79-2601, Reissue Revised Statutes of Nebraska; to amend the uses of2
the Education Future Fund as prescribed; to amend the Nebraska3
Reading Improvement Act; to provide for a grant program related to4
classroom libraries and engagement materials as prescribed; to5
harmonize provisions; to repeal the original sections; and to6
declare an emergency. 7
Be it enacted by the people of the State of Nebraska,8
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Section 1. Section 79-1021, Reissue Revised Statutes of Nebraska, is1
amended to read: 2
79-1021 (1) The Education Future Fund is created. The fund shall be3
administered by the department and shall consist of money transferred to4
the fund by the Legislature. Transfers may be made from the Education5
Future Fund to the Computer Science and Technology Education Fund at the6
direction of the Legislature. Any money in the Education Future Fund7
available for investment shall be invested by the state investment8
officer pursuant to the Nebraska Capital Expansion Act and the Nebraska9
State Funds Investment Act. 10
(2) The fund shall be used only for the following purposes, in order11
of priority: 12
(a) To fully fund equalization aid under the Tax Equity and13
Educational Opportunities Support Act; 14
(b) To fund reimbursements related to special education under15
section 79-1142; 16
(c) To fund foundation aid under the Tax Equity and Educational17
Opportunities Support Act; 18
(d) To increase funding for school districts in a way that results19
in direct property tax relief, which means a dollar-for-dollar20
replacement of property taxes by a state funding source;21
(e) To provide funding for a grant program created by the22
Legislature to address teacher turnover rates and keep existing teachers23
in classrooms; 24
(f) To provide funding to increase career and technical educational25
classroom opportunities for students, including, but not limited to,26
computer science education. Such funding must provide students with the27
academic and technical skills, knowledge, and training necessary to28
succeed in future careers; 29
(g) To provide funding for a grant program created by the30
Legislature to provide students the opportunity to have a mentor who will31
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continuously engage with the student directly to aid in the student's1
professional growth and give ongoing support and encouragement to the2
student; 3
(h) To provide funding for extraordinary increases in special4
education expenditures to allow school districts with large, unexpected5
special education expenditures to more easily meet the needs of all6
students; 7
(i) To provide funding to help recruit teachers throughout the state8
by utilizing apprenticeships through a teacher apprenticeship program and9
an alternative certification process; 10
(j) To provide funding to develop and implement a professional11
learning system to help provide sustained professional learning and12
training regarding evidence-based reading instruction and for a grant13
program relating to dyslexia research; and 14
(k) To provide funding for a grant program related to the Nebraska15
Reading Improvement Act as provided in section 3 of this act; and16
(l) (k) To provide funding for a pilot project administered by the17
State Department of Education to provide menstrual products to school18
districts. 19
(3)(a) The State Treasurer shall transfer one billion dollars from20
the General Fund to the Education Future Fund in fiscal year 2023-24, on21
such dates and in such amounts as directed by the budget administrator of22
the budget division of the Department of Administrative Services.23
(b) The State Treasurer shall transfer two hundred fifty million24
dollars from the General Fund to the Education Future Fund in fiscal year25
2024-25, on such dates and in such amounts as directed by the budget26
administrator of the budget division of the Department of Administrative27
Services. 28
(c) It is the intent of the Legislature that two hundred fifty29
million dollars be transferred from the General Fund to the Education30
Future Fund in fiscal year 2025-26 and each fiscal year thereafter.31
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Sec. 2. Section 79-2601, Reissue Revised Statutes of Nebraska, is1
amended to read: 2
79-2601 Sections 79-2601 to 79-2607 and section 3 of this act shall3
be known and may be cited as the Nebraska Reading Improvement Act.4
Sec. 3. (1) For the 2026-27 and 2027-28 school years and subject to5
available appropriations, the State Department of Education shall develop6
and administer a grant program to provide high-quality, age-appropriate7
classroom libraries and monthly parent or caregiver engagement materials8
in cooperation with a Nebraska-based nonprofit organization with at least9
ten years of experience in book distribution. 10
(2) Priority for grants shall be given to any application from a11
school district: 12
(a) That is in the lowest performance classification under the13
accountability system developed pursuant to section 79-760.06;14
(b) In which forty percent of the students are poverty students as15
defined in section 79-1003; or 16
(c) In which a higher than average percentage of students in17
kindergarten through grade five are identified as having a reading18
deficiency. 19
(3) The department shall provide a recommended list of high-quality20
books, covering a variety of topics, subjects, and genres in at least21
English and Spanish, for each participating elementary classroom.22
(4) Each participating elementary classroom shall track:23
(i) Book circulation totals; 24
(ii) Available books, including the title, author, publisher, and25
International Standard Book Number for each book; 26
(iii) Student enrollment numbers; and 27
(iv) The total number of books taken home by each student.28
(5) The department shall also assist school districts in selecting29
or developing parent or caregiver engagement materials for each student30
in a participating classroom to take home each month.31
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(6) On or before December 1, 2028, the State Department of Education1
shall submit a report electronically to the Clerk of the Legislature and2
the Education Committee of the Legislature relating to the grant program.3
The report shall include, to the extent possible, quantitative and4
qualitative metrics based on statewide assessments administered pursuant5
to section 79-760.03, assessments administered under the Nebraska Reading6
Improvement Act, and classroom assessments of reading proficiency,7
reading skills, or literacy acquisition. 8
(7) It is the intent of the Legislature to appropriate up to one9
million dollars from the Education Future Fund each fiscal year for10
fiscal years 2026-27 and 2027-28 to the State Department of Education to11
carry out this section. Such appropriation shall only be used for:12
(a) Purchase and delivery of books; 13
(b) Development and delivery of engagement materials;14
(c) Direct program staffing; 15
(d) Evaluation of the pilot; and 16
(e) Administrative expenses of up to ten percent of the17
appropriation. 18
(8) The State Board of Education may adopt and promulgate rules and19
regulations to carry out this section. 20
Sec. 4. Original sections 79-1021 and 79-2601, Reissue Revised21
Statutes of Nebraska, are repealed. 22
Sec. 5. Since an emergency exists, this act takes effect when23
passed and approved according to law. 24
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