March 23, 2026

​109th Legislature, 2nd Session

Budget Debate Bill Stalls Out

Nebraska lawmakers hit an unexpected roadblock when the main mid-biennium budget bill, LB 1071, failed to advance after several Republican senators pushed back over the removal of $3.5 million in private school opportunity scholarship funding. Appropriations Committee Chair Senator Rob Clements (Elmwood) stripped the funding ahead of debate in order to avoid a filibuster. However, the move backfired, with 19 senators refusing to support the Motion to Invoke Cloture, which would end debate on the bill. The standoff highlighted deep divisions within the Republican caucus and between policy and budget priorities, as Governor Jim Pillen publicly urged lawmakers to "stop playing political games" and pass a balanced budget. The failed cloture vote marked the first time since 2019 that a Nebraska budget bill stalled on the floor.​

The impasse also raised concerns about the broader budget timeline and the risk of a special session if lawmakers cannot reconcile disagreements. Senators clashed over whether policy issues - particularly scholarships for students attending private schools and child-care subsidy eligibility - belong in the budget at all, with several warning that continued gridlock could jeopardize funding stability for key state programs. Prior to adjournment following the vote, Speaker John Arch (La Vista) announced the budget would be considered again on Monday. Notwithstanding the dismal vote support of LB 1071, the second budget bill, LB 1072, advanced Thursday on a vote of 35-12. LB 1072 is made up of a series of cash fund transfers aimed to balance the budget, which peaked at a $646 million shortfall this session.

NBA Affirmative Legislation Advances

On Wednesday, senators advanced a series of NBA affirmative legislation. First, the Legislature advanced LB 838, introduced by Senator Mike Jacobson (North Platte) to Final Reading. LB 838 amends existing elder and vulnerable adult statutes to allow financial institutions to designate an "authorized contact" in the event of an emergency, a loss of contact with the customer, or suspected financial exploitation. LB 838 also includes LB 1118. Senator Carolyn Bosn (Lincoln) introduced LB 1118 on behalf of the NBA to combat the rising use of fraudulent social media advertisements to perpetrate fraud. The bill, as included in the amendment, amends the Nebraska Uniform Deceptive Trade Practices Act to require social media platforms that accept paid advertising to establish programs to verify the identity of their customers, and a process for detecting, investigating, and removing fraudulent advertising. LB 838 was designated as the Banking, Commerce, and Insurance Committee's banking priority bill and includes LB 837, introduced by Senator Jacobson on behalf of the NBA, which allows banks and merchants to round cash transactions to the nearest nickel.

Following advancement of LB 838, the Legislature took up two important bills related to housing. First, Senators advanced LB 768, introduced by Senator Rob Dover (Norfolk). LB 768, as introduced, allows the Nebraska Department of Economic Development to enter into a contract to allow an outside entity to administer housing programs. The underlying goal is to allow the Nebraska Investment Finance Authority (NIFA) to administer all housing programs for the state. LB 768 includes LB 819, introduced by Senator Bob Hallstrom (Syracuse) on behalf of the NBA, to extend the sunset of the Nebraska Rural Workforce Housing and Middle-Income Workforce Housing programs.​

The Legislature then took up LB 1067, also introduced by Senator Hallstrom. 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. Both housing bills, LB 768 and LB 1067, advanced to Final Reading following debate.