NE LB131

Expands the Nebraska educational savings plan trust (529 plan) to allow tax-advantaged distributions for elementary and secondary school tuition expenses, capped at $10,000 per beneficiary per year

Renames the "College Savings Plan" funds to "Education Savings Plan" throughout Nebraska statutes to reflect the expanded K-12 eligibility

Removes a provision that previously excluded K-12 tuition expenses from the definition of "nonqualified withdrawal," enabling tax-free withdrawals for private school tuition

Maintains existing restrictions that matching scholarship funds and Meadowlark Program funds cannot be used for K-12 expenses and must be used only for postsecondary education at Nebraska institutions

Becomes operative January 1, 2026, and amends over 20 sections of Nebraska Revised Statutes related to the educational savings plan trust, tax code, and Meadowlark Act