Government, Military and Veterans Affairs Committee

January 21, 2026

Committee Chair: Sen. Rita Sanders | Bills Heard: 3 | Full Transcript (PDF)

LB767: Certified Health Options and Claims Experience for Veterans Act

Introduced by: Sen. Rick Holdcroft | Testimony: 2 proponents, 11 opponents, 0 neutral

Nebraska committee hears competing visions for regulating veterans' benefits consultants. LB767 would create state-level consumer protections for nonaccredited claims consultants, allowing them to charge contingency fees up to five times monthly benefit increases. The bill drew overwhelming opposition from veterans service organizations, county VSOs, and veterans advocates who argue it legalizes practices prohibited under federal law and exploits vulnerable veterans.

Why it matters: Nebraska has roughly 120,000 veterans but fewer than 200 accredited veterans service officers, creating demand for assistance. However, opponents argue that allowing unaccredited consultants to charge fees—sometimes tens of thousands of dollars—undermines the free, accredited services already available and opens the door to predatory practices.

What they're saying: - Proponents: Bill preserves veteran choice while setting guardrails. "Veterans deserve choices, not mandates," testified John Blomstrom. Seven other states have passed similar legislation. Peter O'Rourke of the National Association for Veterans Rights said state-level regulation helps differentiate between good and bad actors. - Opponents: "LB767 attempts to make something that is illegal under federal law legal under Nebraska state law," testified Mark Lakamb, Lancaster County VSO. Companies lack VA training and oversight. Jeffrey Baker of the Veterans of Foreign Wars said the bill "protects greed" and is "funded by pain, illness, and trauma of veterans." Spike Jordan, a county VSO, said companies have spent over $120,000 lobbying—more than major tech companies.

By the numbers: Lancaster County VSOs provided $4.5 million in benefits to veterans in 2025 at zero cost. If LB767 rates had applied, it would have cost veterans $2.78 million. Buffalo County doubled veteran contacts served (3,400 to 8,400) by switching from unaccredited to accredited VSO without adding staff.

What's next: No vote was taken. Committee Chair Sanders suggested working with Senator Holdcroft to potentially merge LB767 with competing bill LB693 before advancing either measure.

LB786: Military Department Aid Fund

Introduced by: Sen. Rita Sanders | Testimony: 1 proponents, 0 opponents, 1 neutral

Committee advances bill to create aid fund for struggling National Guard members. LB786 would establish the Military Department Aid Fund, administered by the Adjutant General, to provide direct financial assistance to needy uniformed service members of the Nebraska Military Department. The fund would be seeded with revenue from military honor plate sales—approximately $27,000 annually—plus private donations and potential legislative appropriations.

Why it matters: National Guard members sometimes face financial hardship due to deployment, emergencies, or personal crisis. Many do not qualify for existing Nebraska Veteran Aid Fund because they lack qualifying active duty service. The Nebraska Military Department currently distributes only about $3,000 annually in assistance from donations, with 65% going to gas and grocery cards.

What they're saying: Major General Craig Strong testified that in 2025, the department provided $7,200 in aid because the federal government shutdown left most members without paychecks. The fund would initially provide approximately $13,500 in assistance, growing as it matures. Money would be professionally invested with earnings credited back to the fund.

By the numbers: Military honor plate sales generate approximately $27,000 annually. The department currently assists members through donations averaging $3,000 per year.

What's next: No vote was taken. A Government Committee amendment adjusts the implementation date to January 1, 2027, to allow the Department of Motor Vehicles time to update systems.

LB787: Cleanup and modernization of military and veterans affairs statutes

Introduced by: Sen. Rita Sanders | Testimony: 1 proponents, 0 opponents, 0 neutral

Committee hears cleanup bill modernizing military and veterans governance structure. LB787 makes targeted updates to statutes governing the Department of Veterans Affairs and Commission on Military and Veterans Affairs, including updating commission membership to reflect Nebraska's current military presence and modernizing reporting requirements.

Why it matters: The bill ensures Nebraska's military governance structure reflects current strategic assets and operational realities. The 2025 establishment of the 95th Wing at Offutt Air Force Base and ongoing modernization of the 90th Missile Wing's Nebraska-based silos represent significant military and economic impacts that warrant formal representation on the commission.

What they're saying: Director John Hilgert testified that the bill "strengthens Nebraska's relationship with the military community, improves the quality of information available to policymakers, and modernizes our statutes to eliminate outdated and confusing provisions." He noted that adding representation from the 90th Missile Wing is important because missile field modernization "affects land use, transportation networks, public safety coordination, and local economies across large portions of our state."

By the numbers: Military-related economic data has grown less than 5% since 2021 (essentially flat when adjusted for inflation), according to Hilgert.

What's next: No vote was taken. Senator Sanders waived closing statement. Zero online comments were submitted.

Session Notes

Committee Chair Rita Sanders opened hearing with procedural instructions regarding testifier sheets, three-minute light system, handout requirements, and written position letter submission deadline of 8 a.m. day of hearing via legislate.nebraska.gov. Committee members introduced: Sen. Megan Hunt (District 8), Dunixi Guereca (LD 7), John Cavanaugh (District 9), Bob Andersen (District 49, Vice Chair), Dan Lonowski (District 33), Dave Wordekemper (District 15), and Fred Meyer (District 41). Legal counsel Dick Clark and committee clerk Julie Cash assisted. Pages: Luke Perry (UNO freshman, history/political science) and Grace Harper (UNL junior, political science). LB767 hearing was contentious with 2 proponents and 11 opponents testifying. Chair Sanders noted that Nebraska Legislature ensures every bill, good or bad, receives a hearing. Senator Holdcroft indicated willingness to work with committee on LB767 before advancement. LB786 and LB787 hearings were brief with minimal opposition or questions.

Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.