JACOBSON OUTLINES MINIMUM WAGE CHANGES, IMPACT ON RURAL NEBRASKA BUSINESSES

LINCOLN — State Sen. Mike Jacobson of District 42 detailed ongoing legislative efforts around Nebraska’s minimum wage law, stressing concerns from local employers about the impact of automatic cost-of-living increases on small businesses. Jacobson highlighted that the Legislature passed LB 258, which freezes the current $15 per hour wage for 2026 but shifts future increases to a predictable annual 1.75 percent rise starting in 2027. He emphasized the importance of balancing fair wages with the economic realities of rural communities, where tight margins and shrinking labor pools make wage planning challenging for small employers.

Jacobson also noted the creation of a separate minimum wage for younger workers to preserve entry-level job opportunities and reiterated his commitment to policies that support both workers and local businesses across District 42. He encouraged constituents to continue sharing their views as lawmakers weigh long-term economic implications for Nebraska’s communities.

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NEBRASKANS DECRY CASH FUND SWEEPS IN GOV. JIM PILLEN’S STATE BUDGET PROPOSAL

LINCOLN — Nebraska Gov. Jim Pillen’s mid-biennium budget proposal sparked strong opposition at a recent public hearing, with critics from across the state lambasting his continued use of cash fund sweeps to balance a projected deficit. At the combined hearing for Legislative Bills 1071 and 1072 — aimed at closing an estimated $471 million shortfall — virtually no one spoke in support of the measures, which would cut overall state spending, reduce agency budgets and transfer money out of funds set aside for specific purposes. Opponents argued these “sweeps” divert money from dedicated uses — from environmental projects to public services — undermining public trust and jeopardizing long-term commitments. Testifiers also raised concerns about changes to how policy priorities are included in the state budget.

Supporters of Pillen’s plan, including the governor’s budget administrator, say reviewing more than 900 cash funds and reallocating excess balances is necessary to responsibly balance the budget without raising taxes. Still, the proposal drew significant written and spoken opposition — over 600 written comments and more than two dozen speakers against it — with critics warning that sweeping funds could stall projects, weaken services, and leave fewer resources available for future needs. Major cuts, such as significant reductions to the Department of Health and Human Services budget and repurposing funds from initiatives like the Nebraska Environmental Trust, were central points of contention.

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NEBRASKA LAWMAKERS WEIGH RISKS, BENEFITS OF CAPITOL GUN BAN

LINCOLN — A bill introduced by the Legislature’s Executive Board would ban guns and other weapons from the Nebraska Capitol, citing growing concerns about threats and political violence. Legislative Bill 1237, sponsored by Sen. Ben Hansen, would prohibit firearms and hazardous materials such as explosives and pepper spray, while still allowing law enforcement, certain off-duty officers, and those approved by the State Patrol to carry weapons. Hansen said the proposal is meant to improve safety for lawmakers, staff and visitors, with potential security measures including metal detectors and controlled entry points.

The proposal drew mixed reactions at a public hearing, with supporters calling the Capitol an appropriate place for a weapons ban and opponents warning it could make visitors feel less safe, especially when walking to and from parking areas. Critics also raised concerns about costs, as the State Patrol estimates staffing secure entry points could cost up to $1.4 million annually. Lawmakers emphasized the bill is not final and said security options would continue to be evaluated as the Legislature weighs safety, access and budget constraints.

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LEGISLATURE PASSES LAW CAPPING ANNUAL MINIMUM WAGE BUMPS, CREATES ‘YOUTH’ WAGE BELOW $15

LINCOLN — Nebraska’s Legislature passed Legislative Bill 258, which changes how the state minimum wage grows in future years. Instead of automatic cost-of-living increases tied to inflation, the law sets a fixed 1.75% annual increase once the wage reaches $15/hour. The measure passed 33-16 and is expected to be signed by Gov. Jim Pillen, taking effect this summer. Supporters say the fixed rate gives businesses predictability and helps protect jobs, while critics argue it undermines voter-approved increases and won’t keep pace with living costs.

The law also creates a new “youth minimum wage” for workers aged 14 and 15 starting at $13.50/hour, which will rise very slowly over decades and remain below $15 until about 2065. It increases modestly every five years, and employers can still pay workers older than that the regular minimum wage with the annual 1.75% bump. The bill also revises the “training wage” for teens, raising it from its current tied-to-federal level to $13.50 with small annual increases. Critics argue the changes send the wrong message about youth labor and wage fairness, while supporters say they’ll help create more job opportunities for young workers.

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PILLEN SEEKS NEW APPOINTEE AFTER MEDICAL CANNABIS COMMISSION CHAIR RESIGNS

LINCOLN — Nebraska Gov. Jim Pillen is now accepting applications to fill a vacancy on the statewide Medical Cannabis Commission after its chair, Dr. Monica Oldenburg, resigned. Oldenburg, an anesthesiologist from Lincoln who had been appointed to the commission in April and confirmed by the Legislature, said in her resignation letter that she could not commit the necessary time to the volunteer role due to her family and medical practice commitments. Interested applicants can apply online or by mail for the at-large seat, which carries a six-year term and is subject to legislative confirmation; interim leadership of the commission has passed to fellow at-large member Lorelle Mueting. 

Oldenburg’s departure follows broader changes on the commission, which includes two at-large members in addition to the three members of the Nebraska Liquor Control Commission, all of whom are gubernatorial appointees. In 2025, Gov. Pillen asked former liquor commission members to resign and appointed new members with an eye toward cannabis experience. Pillen has emphasized that the panel’s work should keep Nebraska’s program strictly medical and not slide toward recreational use as it continues to develop regulations and licensing criteria under the state’s voter-approved medical cannabis laws. 

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PILLEN APPOINTS FORMER HUSKERS FULLBACK, PHYSICAL THERAPIST TO NU BOARD OF REGENTS

LINCOLN — Nebraska Gov. Jim Pillen has appointed Joel Makovicka, a former Husker fullback and physical therapist, to fill a vacant seat on the University of Nebraska Board of Regents representing Omaha’s District 4. Makovicka played on three national championship teams at NU and now runs a physical therapy practice in the Omaha and Lincoln areas. His appointment runs through January 2027, and he may seek election to keep the seat.

Makovicka replaces Elizabeth O’Connor, who resigned after being charged with felony DUI in connection with a 2025 crash. Voters will choose who serves the remainder of the term later this year, with a primary in May and a general election in November.

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SHOULD THE NEBRASKA LEGISLATURE INTERVENE IN COLLEGE PROGRAMS THAT LEAD TO LOW-EARNING JOBS?

LINCOLN — A bill before Nebraska lawmakers would limit state or local funding for college programs whose graduates are expected to earn less than workers with lower levels of education. Legislative Bill 1196, introduced by Sen. Tanya Storer, would align state policy with an upcoming federal standard aimed at reducing student debt and ensuring degrees provide a financial return. Programs would only lose funding if they fail the earnings test in two out of three years, starting next year.

Critics warned the proposal oversimplifies the value of higher education and could threaten programs that fill essential workforce needs, particularly in lower-paying fields. Lawmakers and higher education leaders said degrees in areas such as education, child care, health care and public safety may start with modest wages but provide long-term benefits to communities and the state economy. Colleges and university groups opposed the bill, arguing they already review program viability and that a single earnings test fails to capture a program’s broader impact.

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SCRUTINY INTENSIFIES OVER PILLEN ADMINISTRATION’S $2.5 MILLION NO-BID CONTRACT

LINCOLN — Nebraska Gov. Jim Pillen’s administration is facing growing scrutiny over a $2.5 million emergency no-bid contract, after offering shifting explanations for why the deal bypassed competitive bidding. State Auditor Mike Foley says the administration failed to clearly document any true emergency and questions whether the contract — awarded to a consultant the governor recommended — should have gone through the normal procurement process. Foley’s audit also raised concerns about a required legislative report that was filed late and may have been back-dated.

The dispute escalated when Foley referred two audit findings to the Nebraska Attorney General and State Patrol, alleging potential misconduct related to both the emergency designation and communications with his office. As the controversy played out publicly during legislative hearings, Foley and the state’s Department of Administrative Services agreed to support a policy change requiring emergency no-bid contracts to be filed directly with the Auditor’s Office, an added oversight step aimed at improving transparency and preventing future misuse of the emergency exception.

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ENVIRONMENTAL TRUST OFFICIAL ASSURES GRANTS WILL BE AWARDED, DESPITE PAUSE

LINCOLN –The board of the Nebraska Environmental Trust met Thursday but did not lift a temporary pause on awarding about $18 million in conservation and wildlife grants, even as an official assured groups their funding will ultimately be distributed. The pause was put in place amid uncertainty surrounding Gov. Jim Pillen’s proposal to transfer $40.7 million from the Trust to help close the state’s budget gap and fund other projects, prompting concern from grantees that the Trust’s mission could be undermined. Critics, including conservation groups, fear the budget move could jeopardize the Trust’s ability to support environmental work and drain funds intended for competitive grants.

Trust leadership, including board chair Mark Quandahl, said the money for the grants “is coming” but that the pause is intended to ensure the Trust has sufficient funds before dispersing multi-year awards, and they are seeking a legal opinion on potential obligations. Some Trust board members, and advocates for a constitutional amendment to protect the Trust’s funds from future budget sweeps, expressed worry that using lottery-derived Trust dollars for state budget holes could weaken the agency’s long-term ability to support conservation projects across Nebraska.

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COMMITTEE ADVANCES ONE-WORD TWEAK TO NEBRASKA CONSTITUTION ON CITIZEN VOTING

LINCOLN — A Nebraska legislative committee advanced a proposed constitutional amendment that would tweak language in the state Constitution to explicitly state that only U.S. citizens can vote in Nebraska elections, even though citizenship is already required under current state law. Supporters of the change say the amendment simply clarifies the existing requirement and prevents confusion, while some critics argue it could feed misinformation about voting rights without changing any actual eligibility rules.

The proposal is part of broader debates this session about voting rules and ballot measures, including competing ideas on how voting should work in the state and who should be allowed to participate. Lawmakers and advocacy groups are also considering other election-related constitutional amendments and reforms that could affect Nebraska’s democratic processes in the 2026 election cycle.

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NEBRASKA LAWMAKER WANTS TO BAN PUBLIC UTILITIES FROM CLOSING, ALTERING POWER PLANTS

LINCOLN — A Nebraska lawmaker has introduced a bill that would bar public utilities from closing or significantly altering power plants as long as customers still rely on them, with limited exceptions for safety, legal mandates or extreme circumstances. The proposal is tied to broader concerns about maintaining reliable electricity as demand grows and follows disputes over plans to change operations at facilities like Omaha’s North Omaha Station.

Opponents argue the bill would undercut local control and restrict utilities’ ability to modernize or respond to environmental and community needs. Supporters say it would help protect grid reliability, while critics warn it could lock utilities into outdated or inefficient operations.

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NEBRASKA GOV. JIM PILLEN RESPONDS TO BACKLASH OVER SAYING ‘LIBTARDS’

LINCOLN — Nebraska Gov. Jim Pillen’s office has addressed his recent tele-town hall comments that triggered criticism from disability advocates and families. 

Last week, reporters tried to ask Pillen about his use of the term “libtards” three times during the tele-town hall, but a spokesperson stepped in before the governor could answer. 

Pillen, through a statement on Wednesday, said that he has always supported “Nebraska’s developmentally disabled community.” The governor’s spokesperson pointed to him clearing the “long-stalled DD waitlist, speeding service access to Nebraska families who had waited for years, and substantially increased special education funding for our schools.”

“He is a fierce advocate for the inherent dignity and value of all people,” said Laura Strimple, Pillen’s communications director. 

Strimple said the governor didn’t direct his comment to the developmentally disabled community or their families, “nor did the thought ever cross his mind.”

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NEBRASKA PROPOSES REQUIRING KIDS TO TAKE STATE-MANDATED READING TEST TO MOVE ON FROM THIRD GRADE

LINCOLN — Nebraska is looking to require students to retake third grade if they fail a state-mandated reading test — with some exceptions. 

The proposal is from the Nebraska Gov. Jim Pillen, carried by State Sen. Dave Murman of Glenvil, chair of the Legislature’s Education Committee. Legislative Bill 1050 would require schools to help students who fail to meet the new benchmarks with an “intensive acceleration class” featuring a smaller student-teacher ratio to focus on improving students’ reading level. 

Students could be held back once between third and fourth grade, determined by three reading assessments during the school year. The new requirements would begin fall of 2027. 

Nebraska students in kindergarten through second grade would also take three reading assessments three times during the school year to determine whether they were at the correct reading level. Students receiving special education services or accommodations would be exempt under the proposal. The proposal is a part of the governor’s focus on education for this session.

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NEBRASKA POPULATION RISES SLIGHTLY, AS INTERNATIONAL GROWTH REVERSES

LINCOLN — While Nebraska’s overall population increased slightly to an estimated 2,018,006 in the latest Census report, the key component driving state growth in past years plummeted: immigration.

Data released Tuesday reveals a 0.6% annual population bump, or about 12,500 more residents overall from July 2024 through June 2025. The information also shows the three main components of population change.

Of the three, international migration was most glaring. More foreign-born newcomers still came to Nebraska than left, but the net growth of 6,599 was half the amount reported the previous year.

Josie Schafer of the Center for Public Affairs Research at the University of Nebraska at Omaha, the state’s liaison to the Census Bureau, attributes the reversal to federal immigration policies versus any shift in how the data is tracked.

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FORMER SEN. MCKEON CALLS FOR INVESTIGATION INTO $2.5 MILLION NO-BID CONTRACT

LINCOLN - Former state Sen. Dan McKeon said Wednesday he has asked Nebraska Attorney General Mike Hilgers to investigate a $2.5 million no-bid contract that was awarded to an associate of Gov. Jim Pillen.

State Auditor Mike Foley earlier this month raised questions about the contract awarded to Global Sustainability Developers LLC, which is owned by Julie Bushell, a lobbyist and consultant. Bushell has gone on economic development trips with Pillen.

Favoritism, an absence of competitive bidding and other procurement irregularities leave many questions unanswered, McKeon said in a prepared statement circulated Wednesday among Nebraska news outlets. McKeon also asked Foley to dig more deeply into the contract.

“This request is about transparency, accountability and maintaining public confidence in how taxpayer dollars are spent,” McKeon said in his statement. 

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DED, PILLEN BACK IN FOLEY’S CROSSHAIRS OVER JUSTIFICATION FOR EMERGENCY NO-BID CONTRACT

LINCOLN — The Nebraska Department of Economic Development (DED) and Gov. Jim Pillen’s administration are under renewed scrutiny from State Auditor Mike Foley over a $2.5 million emergency no-bid contract awarded in 2024 to a firm recommended by Pillen and run by a lobbyist he knew. The administration has argued the expedited contract was necessary because the Legislature’s timeline left too little time for a competitive bidding process and that without the emergency designation the state couldn’t meet a deadline to report bioeconomy progress to lawmakers. 

Foley now says the argument falls apart because DED failed to file the required report by the June 30, 2025 deadline, instead submitting it days later, undermining the claim that time pressure justified bypassing competitive bidding. According to people familiar with the process, the report wasn’t even drafted until Foley requested it, after the state had already ended the contract with the governor’s preferred contractor. Pillen and his office continue to defend the contract and timeline, saying they acted within the law and that the consultant helped secure federal funding for Nebrask

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COURT HEARS LAWSUIT SEEKING TO STOP NEBRASKA FROM RELEASING VOTER DATA TO FEDERAL GOVERNMENT

LINCOLN — A lawsuit is underway in Lancaster County District Court challenging Nebraska Secretary of State Bob Evnen’s plan to turn over detailed voter registration data to the U.S. Department of Justice (DOJ). Common Cause Nebraska, a public-advocacy nonprofit, argues that the federal request — which seeks sensitive information including names, birth dates, driver’s license numbers and partial Social Security numbers — violates state privacy laws, and has asked the court for an injunction to stop the release scheduled for Feb. 12. The state has responded by asking the judge to dismiss the case, and no ruling on the injunction was made at the hearing as the judge took the arguments under advisement. 

Attorneys for both sides debated whether federal authorities must comply with Nebraska law to access the records and whether the federal government should be joined as a necessary party in the case. The DOJ has made similar data requests to numerous other states as part of efforts to verify voter registration rolls, and some states have resisted on privacy grounds. Meanwhile, the dispute has drawn broader political attention and concerns about data privacy, with critics questioning the safety of consolidating detailed voter information at the federal level. 

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FORMER STATE SEN. BRETT LINDSTROM OUT OF NEBRASKA’S 2ND DISTRICT GOP RACE

OMAHA — Former Nebraska State Sen. Brett Lindstrom announced he is withdrawing from the Republican primary race for Nebraska’s 2nd Congressional District seat, saying he no longer wants to deal with the divisiveness of modern politics and feels the current environment doesn’t foster reasonable debate. Lindstrom, who previously ran for governor and served in the Legislature, emphasized that his choice was about stepping back from campaigning rather than a lack of confidence in his chances of winning the nomination. 

His exit leaves Omaha City Councilman Brinker Harding as the likely GOP nominee and shifts focus to the competitive primary field, including multiple Democrats vying for the open seat after five-term GOP Rep. Don Bacon announced he wouldn’t seek reelection. Lindstrom said he plans to remain engaged in politics in other ways, such as supporting future leaders behind the scenes. 

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EFFORT TO REPEAL NEBRASKA IN-STATE COLLEGE TUITION RATES FOR CERTAIN IMMIGRANT STUDENTS FACES FOES

LINCOLN — Legislators in Nebraska held a lengthy public hearing on two bills (LB 1061 and LB 870) that would repeal parts of a longstanding state law allowing certain undocumented immigrant students who grew up and graduated in Nebraska to qualify for in-state tuition rates at public colleges and universities. At the hearing, far more people spoke in opposition than in support, with opponents arguing that ending the in-state tuition benefit would harm students who were brought to the U.S. as children and have deep ties to the state, while supporters of the repeal said taxpayer subsidies for out-of-state tuition are unfair. 

Critics of the repeal also highlighted concerns about access to higher education and the impact on Nebraska’s workforce and communities if students face significantly higher tuition costs. Proponents of maintaining the current policy stressed that it helped provide opportunities for students who contribute to the state economically and socially, and urged lawmakers to preserve the existing in-state tuition provision rather than roll it back.

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NEBRASKA UNEMPLOYMENT CLAIMS SPIKE TO 5-YEAR HIGH

LINCOLN - Unemployment claims in Nebraska jumped sharply last week to their highest level in about five years, with 3,043 initial filings for the week ending Jan. 24, more than three times the total from the previous week and the biggest increase of any state. The surge is largely tied to the closure of the Tyson Foods beef processing plant in Lexington, which employed over 3,000 people and recently shut down, leading many workers to seek unemployment benefits. 

The spike occurred against a backdrop of already elevated unemployment, as Nebraska’s seasonally adjusted jobless rate has been at around 3% in recent months, and there were notably more unemployed residents in December compared to a year earlier. The Tyson plant closing appears to have a significant impact on the state’s labor market, even as broader employment indicators had been relatively stable. 

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