LINCOLN — Nebraska State Auditor Mike Foley says his ongoing investigation into a controversial $2.5 million emergency no-bid bioeconomy contract could extend beyond the Nebraska Department of Economic Development (DED) to include staff directly under Governor Jim Pillen’s control. Foley’s referral to the Nebraska Attorney General raises questions about how the contract was structured and awarded — including whether the Governor’s Office influenced DED’s decisions and whether proper emergency justification was documented as required under state procurement law. Pillen and his team have pushed back, defending the contract and saying they followed the law and acted quickly to secure federal funding opportunities.

Foley’s audit points to shifting explanations from the administration about why competitive bidding was bypassed, and concerns that a required legislative report was filed late and potentially back-dated, which Foley says could have legal implications. The dispute has fueled broader scrutiny over the use of emergency contracting, transparency in state government, and potential accountability reforms. The Governor continues to defend his staff’s actions and emphasizes the benefits the state received from the work done under the contract, even as the probe into top staff’s role evolves.

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