April 6, 2026

​109th Legislature, 2nd Session

Legislature Approves Biennial Budget Bills
 
Nebraska lawmakers have approved the final adjustments to the state’s two-year budget, passing LB 1071 and LB 1072 after weeks of negotiation and procedural delays, well beyond the Day 50 requirement. The budget package relies on a mix of spending cuts, cash reserve transfers, and other adjustments to shrink what had grown into a projected $646 million deficit. Major components include a $50 million reduction from the Tobacco Settlement Fund and a cumulative $304 million draw from the Cash Reserve Fund over the biennium. While earlier debates were contentious, especially around proposed scholarship opportunity funding and childcare subsidy eligibility, lawmakers ultimately advanced the budget without those provisions after multiple failed attempts to reach consensus.
 
Even with the mainline budget bills passed, approximately $38 million remained to be addressed, prompting lawmakers to advance several revenue generating and cost saving measures. These include new or reinstated taxes and fees on kratom products, data centers, nonprofit sales, skill-based gaming devices, and water well registrations, along with changes to apprenticeship programs, insurance producer licensing fees, and judicial retirement provisions. Collectively, these bills are projected to generate roughly $44 million, potentially turning the remaining deficit into a modest surplus. Governor Jim Pillen praised the Legislature’s progress while signaling that additional work—including potential line item vetoes—may still be needed to fully stabilize the state’s fiscal outlook.
 
Judiciary Committee Package Advances
 
Last Tuesday the Legislature advanced LB 965, one of two priority bills for the Judiciary Committee. The bill finally advanced after a filibuster of more than five hours. LB 965, introduced by Senator Eliot Bostar (Lincoln), became the vehicle for a series of criminal justice bills for the Judiciary Committee. Contained within the committee amendment was LB 785, introduced by Senator Bob Hallstrom (Syracuse), on behalf of the NBA. LB 785 creates a new Class IV felony for the unauthorized possession, duplication, or use of keys or locks for mail receptacles, including those used by the U.S. Postal Service and commercial carriers, when done with intent to defraud. This legislation directly targets organized mail theft rings that have fueled identity theft and financial fraud across the state. The bill is expected to be scheduled for Final Reading this week.
 
Revamped Brand Bill Passes After Compromise
 
The Legislature also advanced to Select File a revised version of the “Nebraska Brand” bill last week after reaching a compromise intended to ease concerns from ranchers and agricultural groups. LB 1187, introduced by Senator Barry DeKay (Niobrara) initially dealt with modest fee increases for brand inspections. However, following a second hearing, it became the primary bill for reform to the current brand inspection practices in Nebraska. The updated proposal narrows earlier provisions contained in LB 1258 and focuses on modernizing the livestock brand inspection system while preserving key elements important to producers. Supporters say the compromise maintains necessary protections against cattle theft and ensures continuity for the state’s brand program, while also allowing for operational updates sought by policymakers. The bill’s movement signals continued legislative momentum on an issue closely watched by the NBA, and which has proved to be one of the most contentious issues of the entire biennium. 
 
Legislature Ready for Final Week
 
Lawmakers will return on Tuesday for the final week of the 109th Legislature, Second Session. Tuesday marks Day 56 of the 60-day Session. The agenda on Tuesday is filled primarily with Select File bills, as last week was the deadline for any bills to be advanced on General File. Tuesday is also the deadline for Governor Jim Pillen to return any budget bill line-item vetoes. Wednesday is the last day for Select File debate, with the remainder of the week focused on Final Reading. This week is also the last opportunity for any debate over rules changes ahead of the 2027 Session. As it stands, it is expected that Senators will only return for day 60 if Governor Pillen vetoes any bills passed this week. If not, the Legislature will have completed its work and return home, with just fewer than half the Senators shifting their focus to upcoming elections.