A new bill in Nebraska aims to help individuals with disabilities by creating a state fund that will boost their savings and provide more support for their needs. This bill, known as Legislative Bill 391, has been introduced by State Senator Dave Murman from Glenvil. It proposes a new donation fund for Nebraskans with disabilities, which would help them manage expenses related to their disability.
What Is the “Enable Savings Plan” and How Will It Help?
In Nebraska, individuals with disabilities already have the option to open a special savings account known as the “Enable Savings Plan.” This plan, which was first introduced in 2015, is a state-level version of a federal program that allows people with disabilities to save money without losing eligibility for important government benefits like Medicaid or Social Security Income (SSI).
The bill aims to expand this savings plan by introducing a new fund that will allow people to donate to a broader pool. These donations would be tax-deductible, providing an extra incentive for people to help. The plan would not only help individuals with disabilities save money but also give donors an easy way to contribute to this cause.
Current Limitations and How the Bill Will Help
Under current rules, individuals with disabilities can only have up to $2,000 in their name before it impacts their eligibility for benefits. However, through the Enable Savings Plan, people can save up to $100,000 without affecting their benefits. This new bill will expand that opportunity, making it easier for individuals with disabilities to access the funds they need.
Many people with disabilities face higher living costs. According to the Nebraska Treasurer’s Office, people with disabilities in Nebraska have to spend around 28% more on everyday needs. This bill aims to help reduce that financial burden by offering a way for people to save money without the usual restrictions.
What’s Included in the Bill?
The new bill would allow Nebraskans with disabilities to apply for expanded savings accounts that offer broader tax breaks for private donations to the new fund. These donations would help increase the savings of all account holders, rather than just one individual.
Individuals can open an ABLE (Achieving a Better Life Experience) account if their disability began before they turned 26 (or 46, starting January 1, 2026). The savings in these accounts can be used for a wide range of disability-related expenses, including:
- Education
- Housing
- Transportation
- Employment training and support
- Assistive technology and personal support services
- Health and wellness
- Financial management
- Legal services
- Funeral and burial services
The bill would allow people to use these accounts to pay for things like service dog training or a handicapped-accessible vehicle, which are often not covered by insurance.
Support for the Bill
Edison McDonald, the executive director of the Arc of Nebraska, supports the bill. His organization advocates for individuals with intellectual and developmental disabilities, and he believes the bill will strengthen financial stability for these individuals. According to McDonald, the new fund will increase opportunities for people with disabilities and help make Nebraska a more inclusive state.
Stacy Pfeifer, who manages the Nebraska ABLE Program, also praised the bill. She pointed out that the current ABLE Program already has nearly 4,000 accounts and more than $49 million in assets. The new fund would help expand this program, especially helping those who might not have the means to contribute to an individual crowdfunding account for specific high-cost needs.
How Will the Program Work?
If the bill is passed, it will be effective starting January 1, 2026. People will be able to apply for the expanded savings account in the first five months of each year. The state treasurer will review applications and approve as many as possible, depending on available funds.
Senator Murman emphasized that this bill is an important next step for improving the lives of Nebraskans with disabilities. He believes that the Enable Savings Plan has already been life-changing for many, and this expansion will only strengthen the program and provide even more opportunities for financial independence.
Conclusion
The new bill, LB 391, has the potential to greatly impact Nebraskans with disabilities by providing them with expanded savings options and more financial support. If passed, it will empower individuals to save for the future without the fear of losing their vital government benefits. By creating a new donation fund, the bill also provides an opportunity for donors to make a meaningful difference in the lives of people with disabilities. The legislation is still in the early stages but promises to offer a solution that benefits both individuals with disabilities and the community as a whole.
(Source : newsbreak.com)