LINCOLN, Neb. (AP) — A plan to merge two state agencies that serve Nebraska veterans has won initial approval from lawmakers.

Senators on Thursday advanced the proposal through the first of three required votes. Gov. Pete Ricketts pitched the plan as a way to streamline services for veterans and tap federal dollars to cover $1.4 million in expenses that are currently paid by the state.

Veterans’ groups and the state’s public employee union have applauded the idea.

The bill would place the state’s Division of Veterans Homes into the Nebraska Department of Veterans’ Affairs. Currently, the division is a part of the Department of Health and Human Services.

Sen. John Murante of Gretna, the bill’s sponsor, says the proposal will eliminate unnecessary bureaucracy. The merger would go into effect July 1.