LINCOLN — The Omaha Tribe of Nebraska has moved forward with legalizing medical and adult-use recreational marijuana, establishing a tribal cannabis commission to regulate the industry on tribal land. At the same time, the tribe has been pursuing a new tobacco tax compact with the State of Nebraska. Under the proposal, the tribe would keep 90% of the tobacco tax revenue and take on regulatory authority, similar to but more favorable than an existing compact Nebraska has with the Santee Sioux Nation.
However, the negotiations have become strained. Governor Jim Pillen and Attorney General Mike Hilgers expressed concerns about the tribe’s marijuana law and signaled reluctance to move forward with the tobacco tax agreement while the cannabis issue remains unresolved. The Omaha Tribe’s attorney general accused the state of retaliating by slowing or halting compact discussions in response to the tribe’s cannabis legalization. The situation highlights broader tensions over tribal sovereignty, state authority, public policy priorities, and revenue-sharing across overlapping jurisdictions.