March 16, 2026

​109th Legislature, 2nd Session

Legislature Advances Budget During First Round Debate

Floor debate last week centered on mid‑biennium budget adjustments as senators worked to close a projected deficit that has grown from roughly $471.5 million at the start of session to more than $646 million following updated revenue forecasts late last month. The Appropriations Committee’s proposal uses a mix of spending reductions, cash‑fund transfers, and withdrawals from the Cash Reserve Fund to shrink the remaining gap to about $125 million, though some have signaled the shortfall may actually be closer to $140 million. Additional adjustments will still be needed before sending the budget to the Governor by the March 25 deadline. Lawmakers began working through the main budget bills – LB 1071 and LB 1072 – with numerous amendments offered to restore or redirect funding for specific programs. Most of those efforts failed, including proposals to shift money away from the Perkins County Canal Project Fund, reinstate support for the Nebraska Cultural Endowment, and protect certain veterans‑related appropriations. An amendment by Senator Tom Brandt (Plymouth) to remove $3.6 million in state funding for private‑school scholarships also fell short, though the issue is expected to resurface as some senators have indicated they may withhold support for the budget unless the funding is removed.

Outside of floor debate, lawmakers continued negotiating how to close the remaining shortfall, with discussions focused on whether additional cuts or further use of the Cash Reserve Fund will be needed to reach balance. The Appropriations Committee continues to meet daily to address these issues. Progress continues, but significant decisions remain before the Legislature can send the budget to the Governor later this month. Second round debate will likely be scheduled this week as the body works toward final passage of the budget bills.

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Permanent Housing Fund Advances

Last week the Legislature advanced LB 1067, introduced by Senator Bob Hallstrom (Syracuse). LB 1067 would create a dedicated, ongoing funding stream for Nebraska’s Rural Workforce Housing and Middle‑Income Workforce Housing programs by adding a $1‑per‑$1,000 increase to the documentary stamp tax, with all new revenue split evenly between the two funds. As initially introduced, the increase would have been $1.50-per-$1,000. The bill will ensure consistent funding for programs that have already proven effective and will help address one of Nebraska’s most significant barriers to workforce growth: a severe shortage of affordable, modern housing. Rising home prices, an aging housing stock, and limited supply have increasingly put homeownership out of reach for young people and working families. The primary opponent has been the Nebraska Realtors Association, who argued the measure would increase the cost of housing. The bill advanced from General File on a vote of 32-8. Thank you to all of you that contacted your senators.

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Evening Debate Set to Begin

Senators will return on Tuesday after a much needed four-day-weekend. While the Legislature is in recess, staff has time to get caught up, and stakeholders have time to continue to draft and negotiate amendments to legislation. Following the St. Patrick’s Day holiday, Senators will begin the first late-night debate, which is expected to be the norm for the remainder of the session. Tuesday’s debate will include the first of up to three “Consent Calendar” debates, where Senators may request to place non-controversial bills up for limited debate. This allows good legislation that did not receive a priority designation to advance, while only taking up limited time, as debate is limited to 15 minutes per bill. This week will mark the three-fourths completion of the 109th Legislature’s Second Session, with much work left to do.