LINCOLN —A public hearing on the Nebraska Department of Economic Development’s (DED) proposed biennial budget raised significant concerns among lawmakers and housing advocates about Gov. Jim Pillen’s plan to consolidate multiple state housing funds. Under the proposal, the Rural Workforce and Middle Income Housing Investment Funds would be merged into the Affordable Housing Trust Fund, moving more than $3 million between programs. Supporters, including DED Director Maureen Larsen, argue the consolidation simplifies administration and helps reallocate resources as pandemic-era programs wind down, but opponents warn that blending funds with different purposes could weaken targeted efforts and harm specific housing needs, such as workforce housing versus affordable housing.

Testifiers at the hearing, including community leaders and housing project advocates, stressed that the distinct goals of the current funds serve different groups and should not be merged, noting past successes of the separate programs. Other budget discussions at the hearing touched on staffing changes at DED — which has lost dozens of positions as programs conclude — and efforts to restore funding for state business development initiatives. Lawmakers continue to wrestle with budget shortfalls while weighing the impacts of these proposed changes on housing affordability and economic development across Nebraska.

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