March 30, 2026

​109th Legislature, 2nd Session

Budget: Third Time's the Charm

Nebraska lawmakers broke a weeks-long budget stalemate by advancing the state's two main budget bills, LB 1071 and LB 1072, to final-round debate after earlier attempts were blocked by filibusters. Prior to Thursday's vote, LB 1071 had failed twice after Senators rejected two separate Motions to Invoke Cloture to end debate. The breakthrough came after senators agreed to strip out two contentious policy provisions: proposed $3.5 million funding for an opportunity scholarship "bridge" program and a permanent expansion of childcare subsidy eligibility. Their removal eased tensions that had previously split the Legislature, allowing LB 1071 to advance 34-7 without the need for a cloture vote, something that had not been possible in earlier debates. The shift in tone was notable, with lawmakers offering standing ovations to Appropriations Committee Chair Senator Rob Clements (Elmwood) for navigating the gridlock.​

Even with the budget bills now poised for final passage, Nebraska still faces a projected $38 million deficit, meaning additional revenue measures will be needed before the session ends. Legislative Fiscal Analyst Keisha Patent noted that closing the gap will likely depend on a series of revenue-generating bills still awaiting debate, including proposals to raise taxes or roll back exemptions. Governor Jim Pillen expressed disappointment that the voucher program was removed but praised the bipartisan cooperation that allowed the budget to move forward. Lawmakers now have a narrow window – just nine days left in the 60‑day session – to finalize both the budget and any accompanying revenue measures needed to balance it.

Affirmative Legislation Set for Final Approval

The balance of the NBA’s affirmative legislation – designated as the Banking, Commerce, and Insurance Committee’s priority bill – has moved on from Select File and is expected to be among the next items scheduled for Final Reading. LB 838, introduced by Senator Mike Jacobson (North Platte), updates protections for elder and vulnerable adults. This bill was amended into a package with two other pieces of legislation introduced on behalf of the NBA: LB 1118 and LB 837. Senator Carolyn Bosn (Lincoln) introduced LB 1118 to help mitigate fraudulent social media advertising by requiring platforms to verify advertisers and remove deceptive content. LB 837, also introduced by Senator Jacobson, allows banks and merchants to round cash transactions to the nearest nickel.​

The Legislature also advanced two key NBA-supported housing measures. LB 768, introduced by Senator Rob Dover, would allow the Department of Economic Development to contract with an outside entity, anticipated to be the Nebraska Investment Finance Authority (NIFA) to administer the state's housing programs. The bill includes LB 819, brought by Senator Bob Hallstrom (Syracuse) on behalf of the NBA, extending the sunset for the Rural Workforce Housing and Middle-Income Workforce Housing programs. With both bills clearing this stage of debate, they are likely to return to the floor soon for final votes as the Legislature works to complete its remaining agenda.