LINCOLN— A Lancaster County judge temporarily blocked Nebraska from transferring $13.5 million from the Nebraska Environmental Trust after finding the plaintiffs were likely to succeed in their constitutional challenge. Judge Susan Strong said allowing the transfer before the case is decided could cause irreparable harm because the money could be spent, making the lawsuit meaningless.

The lawsuit, filed by former state officials Jon Oberg and W. Don Nelson, argues that the Legislature has improperly used the Environmental Trust as a "piggy bank" to cover other state expenses. They contend that a 2003 constitutional amendment requires lottery proceeds allocated to the trust to be spent through the Environmental Trust Act's conservation grant process. The state argues lawmakers still have discretion to redirect the funds for environmental purposes, even outside the trust's grant program.

The disputed transfer stems from Gov. Jim Pillen's budget proposal to use trust funds for water management and state park projects to balance the state budget and provide property tax relief. The temporary injunction prevents the transfer until the court rules on the case, marking another legal victory for plaintiff Jon Oberg, who successfully challenged a similar transfer of Environmental Trust funds in 2020.

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