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 | Read bill text (PDF)
Nebraska committee hears competing visions for regulating veterans' benefits consultants. The Government, Military and Veterans Affairs Committee heard testimony on LB767, which would create state-level regulations for nonaccredited companies that help veterans file VA disability claims—a practice currently prohibited under federal law.
Why it matters: Nebraska has roughly 120,000 veterans but fewer than 200 veterans service officers, creating a potential gap that for-profit consultants want to fill. The debate pits consumer choice against consumer protection, with veterans organizations warning that unaccredited companies exploit vulnerable veterans while proponents argue regulation can enable legitimate assistance.
What they're saying:
Proponents: LB767 respects veterans as adults capable of making informed choices. It includes guardrails: contingency-based fees capped at five times monthly benefit increases, mandatory written agreements, disclosure of free VSO options, and accreditation requirements. Seven other states have passed similar laws. "Veterans deserve choices, not mandates," testified John Blomstrom, a Marine Corps veteran.
Opponents: The bill attempts to legalize under state law what federal law prohibits. Eleven veterans service organizations testified against it, arguing nonaccredited consultants lack VA training and oversight. Lancaster County VSO Mark Lakamb calculated that if his office had charged LB767 rates, it would have cost veterans $2.78 million in 2025—for services VSOs provide free. Veterans of Foreign Wars testified the industry has spent over $120,000 lobbying, more than major tech companies, funded by fees extracted from veterans with cancer, PTSD, and other service-connected conditions.
By the numbers: 2 proponents, 11 opponents, 0 neutral testifiers. Lancaster County VSO office serves 16,000 veterans with four accredited officers. Buffalo County's accredited VSO office handled 8,400+ veteran contacts versus 3,400 under previous registered agent.
What's next: No vote was taken. Committee Chair Sanders indicated the bills need work in committee before advancing, noting the large opposition and directing Senator Holdcroft to work with the committee. She suggested the possibility of merging LB767 with the competing LB693.
Committee sentiment: Skeptical: Sen. Bob Andersen, Sen. John Cavanaugh Unclear: Sen. Dan Lonowski, Sen. Dave Wordekemper, Sen. Megan Hunt, Sen. Dunixi Guereca, Sen. Fred Meyer
Sentiment estimated from questions and comments — not stated positions.
LB786: Military Department Aid Fund
Introduced by: Sen. Rita Sanders | Testimony: 1 proponents, 0 opponents, 1 neutral | Read bill text (PDF)
Nebraska committee advances bill to create aid fund for National Guard members facing financial hardship. The Government, Military and Veterans Affairs Committee heard testimony on LB786, which would establish a Military Department Aid Fund to provide direct assistance to needy uniformed service members of the Nebraska National Guard.
Why it matters: Many National Guard members don't qualify for existing state veteran aid programs because they lack sufficient active duty service. The bill addresses a real gap: the Nebraska Military Department currently distributes only about $3,000 annually in aid from donations, though that jumped to $7,200 in 2025 when a federal government shutdown left members without paychecks.
What they're saying: Major General Craig Strong, Adjutant General of the Nebraska National Guard, testified that the fund would be financed by redirecting revenue from Army and Air National Guard military honor plate sales (approximately $27,000 annually) plus private donations and potential legislative appropriations. The fund would be professionally invested, potentially generating additional revenue. Strong estimated the fund could initially provide approximately $13,500 in aid to needy members, with growth potential as the fund matures. About 65% of current aid goes to gas and grocery cards.
By the numbers: 1 proponent, 0 opponents, 1 neutral testifier. Current annual aid distribution: $3,000 (average), $7,200 (2025). Estimated annual revenue from military honor plates: $27,000. Projected initial aid capacity: $13,500.
What's next: No vote was taken during the hearing. A Government Committee amendment was noted adjusting the implementation date to on or before January 1, 2027, to allow the Department of Motor Vehicles time to update its systems.
Committee sentiment: Supportive: Sen. Bob Andersen, Sen. Dan Lonowski
Sentiment estimated from questions and comments — not stated positions.
LB787: Commission on Military and Veterans Affairs modernization
Introduced by: Sen. Rita Sanders | Testimony: 1 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Nebraska committee hears bill modernizing military and veterans affairs governance structure. The Government, Military and Veterans Affairs Committee heard testimony on LB787, which makes targeted updates to statutes governing the Department of Veterans Affairs and Commission on Military and Veterans Affairs to reflect Nebraska's current military landscape.
Why it matters: The bill responds to significant changes in Nebraska's military presence, including the 2025 establishment of the 95th Wing at Offutt Air Force Base and ongoing modernization of the 90th Missile Wing's Nebraska-based missile field. These developments affect land use, transportation, public safety, and local economies across large portions of the state, requiring updated governance structures.
What they're saying: Director John Hilgert of the Nebraska Department of Veterans Affairs testified that LB787 strengthens the state's relationship with the military community by adding ex officio representation from the 95th Wing commander, 90th Missile Wing commander, Defense POW/MIA Accounting Agency, and civilian-military bridge representatives. He noted these additions ensure all major operational commands have a voice and improve lines of communication for addressing military-related concerns. The bill also modernizes the commission's reporting requirement from automatic annual reports to on-request reports, recognizing that military-related economic data has grown less than 5% since 2021 (essentially flat when adjusted for inflation).
By the numbers: 1 proponent, 0 opponents, 0 neutral testifiers. Military-related economic data growth since 2021: less than 5% (essentially flat when adjusted for inflation).
What's next: No vote was taken. Senator Sanders waived closing statement. The committee concluded the hearing with zero online comments received.
Committee sentiment: Supportive: Sen. Megan Hunt, Sen. Dunixi Guereca
Sentiment estimated from questions and comments — not stated positions.
Session Notes
Committee Chair Rita Sanders opened the hearing with procedural instructions regarding testifier sheets, sign-in sheets, three-minute light system, handout requirements, and written position comment submission deadlines (8 a.m. day of hearing via legislate.nebraska.gov). Committee members introduced themselves: 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 were Luke Perry (UNO freshman, history/political science) and Grace Harper (UNL junior, political science). The committee heard three bills: LB767 (veterans benefits claims regulation), LB786 (military aid fund), and LB787 (commission modernization). No votes were taken on any bills during the hearing.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.