BILL ADVANCES TO MAINTAIN CHILD CARE SUBSIDY INCOME ELIGIBILITY LEVELS

LINCOLN — Income eligibility for Nebraska’s child care subsidy program would remain at the higher caps the state set in 2021 under a legislative proposal advanced Thursday by two committees, including in the state budget.

The Legislature’s Health and Human Services Committee voted 5-1 to advance LB304, from State Sen. Wendy DeBoer of Omaha. It would permanently maintain income eligibility caps at 185% of the federal poverty level rather than lowering them back to 130% this Oct. 1. DeBoer led the 2021 bill to increase the eligibility levels for two years, which was extended again in 2023. The Appropriations Committee separately voted 7-0 to approve a motion that included incorporating the provisions of LB 304 into the state budget, which heads to the full Legislature next week.

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GOOGLE PROPOSES NEW DATA CENTER THAT WOULD REQUIRE MORE POWER THAN ALL OF LINCOLN

LINCOLN-  Google is considering building a data center in Nebraska that could require more than three times the amount of power the entire city of Lincoln uses at peak demand in the summer. 

The tech giant would power that massive data center — possibly the largest in state history — through a privately built utility-scale natural gas plant potentially capable of producing more power than the largest power plant in the state. And it would use carbon capture technology to reduce greenhouse gas emissions. The proposal could hinge on passage of a bill in the Nebraska Legislature. The legislation would allow for the creation of privately built and owned power facilities to power a large industrial customer.

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LEGISLATURE ADVANCES BILL TO FUND HOUSING GRANTS, INCREASE TAX AT CLOSING

LINCOLN —On Monday, senators advanced a bill to fund affordable housing efforts, LB1067. The bill will give a dedicated funding source to the Middle Income and Rural Workforce Housing Funds, funds managed by the Nebraska Department of Economic Development that provide matching grants to nonprofit developer via additional real estate closing costs placed on sellers. The Documentary Stamp Tax would increase from $2.32 to $3.32 per $1,000 in sales. The extra dollar would go to the funds. For sellers of a $300,000 home, it means they'd pay an additional $300 at closing.

State Sen. Bob Hallstrom introduced the bill. It originally called for a $1.50 increase in the tax for the funds. After a compromise amendment was accepted on Monday, it was reduced to the $1 increase and will expire after five years.

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SENATORS ADVANCE BILL REGULATING LARGE BATTERY PROJECTS

LINCOLN - Senators gave first-round approval on Thursday to a bill requiring the developers behind large-scale electric battery projects to partner with the state’s public power system.

Sen. Tom Brandt’s bill (LB1010) requires privately developed energy storage resources, or ESRs, to undergo review and approval by the Nebraska Power Review Board before construction can begin on those facilities.It also requires battery operators to enter into long-term agreements with public power providers outlining the purchase and release of energy, which Brandt said will give developers a steady stream of income while protecting public assets. The bill also requires companies to ensure the batteries can safely integrate into Nebraska’s electrical grid and prohibits them from selling electricity at retail or operating their own distribution systems.

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PILLEN CLAIMS SUCCESSFUL BALLOT MEASURES 'DO NOT REPRESENT THE PEOPLE SPEAKING'

LINCOLN — Gov. Jim Pillen downplayed the mandate of ballot measures as he asked lawmakers to debate a budget proposal to divert public dollars to help cover some costs of attending private schools. Pillen said he is “guilty” of not studying ballot measures before voting, which he estimates is “pretty normal.” He thinks 90% of Nebraska voters are like him and show up to vote without having fully studied the issues ahead of time.

“I believe the ballot initiative process today does not represent the people speaking,” Pillen said in a Feb. 5 interview with the Nebraska Examiner.

In the 2022 and 2024 election cycles, Nebraskans weighed in on voter ID, minimum wage, paid sick leave, abortion, private school funding and medical cannabis. Each of those issues has since returned to the Legislature.

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BILL TO GIVE STATE AUDITOR MORE OVERSIGHT ON NO-BID CONTRACTS ADVANCES FROM COMMITTEE

LINCOLN — A proposal backed by Nebraska State Auditor Mike Foley that would help his office provide more oversight over the state’s no-bid contracts advanced out of committee Thursday and is likely headed to the legislative floor.

LB997, from State Sen. Bob Andersen, comes on the heels of controversy involving the Nebraska Department of Economic Development’s $2.5 million, emergency no-bid contract with agricultural tech CEO Julie Bushell and her Global Sustainability Developers of Lincoln. Gov. Jim Pillen recommended her for the contract, according to Foley’s audit letter. The Foley-sought bill,  would require filing an extra copy of any state no-bid contract, including emergency ones, with the Nebraska State Auditor’s Office. The Nebraska Legislature’s Government, Military and Veterans Affairs Committee backed the bill 8-0.  

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LEGISLATURE KEEPS $3.5M IN PRIVATE SCHOOL FUNDING IN BUDGET, FOR NOW

LINCOLN — Lawmakers kept $3.5 million in Nebraska’s state budget Monday to help students using voter-repealed state funding to attend private K-12 schools with one-time “bridge” support until a new federal tax credit comes online. An amendment to LB1071 to remove the bridge funding and $150,000 in administrative costs failed 23-17. The change, from State Sen. Tom Brandt of Plymouth, needed 25 votes. Brandt said he was “disappointed” in the outcome and said he had 27 senators at one time, but a few backed out.

LB 1071 faces up to two more rounds of debate.

“This is not about taking a kid’s rights away,” Brandt said in debate. He said he was confident donors could seek to privately finance the $3.5 million, “if that gap needs to be filled.”

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PILLEN'S CHIEF CONSULTANT QUITS DAY AFTER POLICE CONFIRM CONTRACT PROBE

LINCOLN — Nebraska’s most influential political consultant has chosen to step away from the state’s highest-profile candidate, the governor, the consultant’s company confirmed Thursday. Jessica Flanagain helped elect Pillen in 2022, when the hog farmer and former university regent won a three-headed Republican primary that became the state’s most expensive governor’s race. Flanagain, when reached Thursday, declined to comment. But Rob Phillips, president  of her parent company, Axiom Strategies, said the firm had ended its contract with Pillen. 

Some politicos contacted about Flanagain’s departure noted the timing. She left Wednesday, a day after Lincoln police said the department is investigating a state contract Pillen steered.

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SENATORS INCH CLOSER TO FILLING PROJECTED DEFICIT AS THEY ENTER 'CRUNCH TIME' FOR THE SHORT SESSION

LINCOLN - An avenue has opened that would nearly close Nebraska’s projected budget deficit, but it will require the state Legislature to approve a slate of revenue-generating bills and a collection of spending cuts and cash transfers.

The Appropriations Committee met for the third day in a row to revisit ways to balance the state’s two-year budget. Lawmakers have just seven legislative days left before they must send their state budget adjustments to Gov. Jim Pillen’s desk for final approval and possible line-item vetoes. The committee voted on new adjustments Thursday that would reduce the deficit by about $8 million. Combined with other adjustments the committee greenlit earlier this week, Patent said that would bring the projected deficit to roughly $40.7 million.

Speaker John Arch told senators Thursday to brace for a sprint to the line marking the end of the 60-day session, also warning senators the session was constrained by time and that they would not have time to debate all the designated priorities this year.

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LARGE WILDFIRES BURN THOUSANDS OF ACRES ACROSS NEBRASKA

Several large wildfires broke out across Nebraska Thursday night, burning thousands of acres and forcing evacuations in some communities. The largest blaze, burning across Thomas, Custer, Logan and Blaine counties near Halsey in the Nebraska Sandhills, had consumed nearly 36,000 acres by midnight, according to federal fire officials. Evacuation resources were set up in nearby towns, including a school in Brady where displaced residents could access food, water and temporary shelter. 

Firefighters from multiple agencies have been battling the fast-moving grassfires, which spread quickly due to dry conditions and strong winds. Officials warned that the combination of dry vegetation and windy weather has created dangerous fire conditions across parts of the state, increasing the risk of additional fires as crews continue working to contain the blazes.

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‘THIRD TIME IS THE CHARM’: EPIC 2.0 AGAIN PAUSES PETITION CIRCULATION, AIMS FOR 2028 BALLOT

LINCOLN — Supporters of the EPIC Option ballot initiative have paused their effort to gather signatures to place the proposal on Nebraska’s 2026 ballot after concluding they will not collect enough support before the deadline. The initiative sought to amend the state constitution to eliminate property, income and inheritance taxes and replace them with a broad consumption tax. Organizers needed roughly 125,000 valid signatures statewide, plus a minimum number from at least 38 counties, to qualify for the ballot. 

Campaign leaders say the pause is a “reset,” not the end of the proposal. After failing to qualify a similar measure in 2024 and struggling again in the current effort, supporters plan to regroup and try for the 2028 ballot, this time using paid petition circulators instead of relying mainly on volunteers. The group hopes to raise about $1.86 million to fund the signature drive, while critics continue to question whether the consumption tax rate needed to replace existing taxes would be much higher than supporters estimate.

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NEW DETAILS ON “STADIUM DISTRICT” PROJECT IN DOWNTOWN OMAHA

OMAHA — A proposed “Stadium District” in north downtown Omaha would transform a roughly 25-acre vacant lot near Charles Schwab Field Omaha and CHI Health Center Omaha into a large mixed-use development anchored by a new soccer stadium. The overall project is estimated to cost more than $316.5 million, and developers are asking the city for over $48 million in tax-increment financing (TIF) to help fund it.

The stadium would serve as a permanent home for Union Omaha, seating about 6,500 fans with additional standing-room areas, and could host concerts, community events, and other sporting competitions throughout the year. Developers estimate the project could create around 200 jobs, bring in rental revenue, and potentially support a future women’s soccer team. If approved, developers hope to break ground this fall and open the stadium in 2028, with a public hearing on the redevelopment plan scheduled for April 7 before the Omaha City Council.

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PILLEN LIKELY GOP NOMINEE FOR ANOTHER TERM AS HERBSTER SAYS HE WILL NOT RUN

LINCOLN — There will be no Republican rematch for the Nebraska governor. After months of taking shots at the Nebraska Gov. Jim Pillen on social media, multistate agribusinessman Charles Herbster will not run for governor, his team announced on Monday, the state’s filing deadline for running for public office.

Pillen does face a group of primary challengers in Sheila Korth-Focken, Jacy Todd, and Gary L. Rogge. Herbster, who largely self-funded his 2022 GOP primary loss to Pillen, was considered a serious threat in Nebraska political circles. Pillen has raised more than $10 million for reelection.

Pillen is now the heavy favorite to win GOP primary; facing a likely general election against former Senator Lynne Walz.

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AT NIOCORP, CONSTRUCTION STARTS ON LONG-AWAITED RARE MINERALS MINE

LINCOLN — Early construction work has launched on a long-awaited critical minerals mine in southeast Nebraska, with state and local officials starting the digging during a recent briefing at the project site. The $45 million effort to construct the entrance, also known as a portal, marked the first visibly significant on-site movement at the mine, which has been talked about for years and still faces major fundraising hurdles.

NioCorp described its Elk Creek initiative as one of the few advanced U.S.-based projects capable of producing multiple critical minerals from a single orebody. It said the portal construction advances the mine project from a planning phase into pre-construction.

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'SPECIAL LEGISLATION' CLAIM ENDS AMENDMENT SEEKING TO PLACE OSBORN IN HALL OF FAME

LINCOLN - Constitutional 'special legislation' concerns regarding an amendment that would add former Husker football coach and U.S. Rep. Tom Osborne to the Nebraska Hall of Fame prompted a brief skirmish on the legislative floor Thursday.  

During first-round debate on a Government, Military and Veterans Affairs Committee bill package, Hastings Sen. Dan Lonowski introduced an amendment to include a bill (LB1159) that he introduced on the governor's behalf requiring the Nebraska Hall of Fame Commission to induct Osborne by Jan. 1. Osborne, 89, would be the first living inductee if the legislation is passed.

Lincoln Sen. Danielle Conrad called the bill "blatantly unconstitutional" as written since Osborne would be the only person to legally qualify. 

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STATE MEDICAID BUDGETS WILL DECLINE BY $665 BILLION UNDER NEW FEDERAL LAW, REPORT FINDS

WASHINGTON - State Medicaid budgets will be reduced by a total of $665 billion over the next decade, after President Donald Trump’s One Big Beautiful Bill Act cuts federal investment in the health insurance program, according to a new analysis.

Researchers from RAND Health, a policy and research nonprofit, analyzed state and federal data to estimate how much the loss of federal money will affect state Medicaid budgets, publishing their findings late last month. Medicaid is the public health insurance program for people with low incomes, jointly funded by state and federal money.

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SENATORS COMPROMISE, ADVANCE WORKERS' COMPENSATION REFORM BILL

LINCOLN - Lawmakers struck an agreement on Tuesday that allowed a bill changing how workers injured on the job learn about their legal options to advance to the second round of debate. The Legislature voted 36-1 to advance a narrower version of a bill (LB455) sponsored by Sen. Bob Hallstrom of Syracuse that sought to enact reforms to Nebraska’s workers' compensation system.

The amended version of the bill requires the Workers' Compensation Court to keep first injury reports confidential for a 60-day “cooling off” period before they become subject to public records laws. In the meantime, the bill also requires the court to notify workers who file claims that they can engage the services of an attorney to represent them if they choose.

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LEGISLATURE TRIES CLEANING UP FOREIGN ADVERSARY LAW TO SALVAGE STATE TAX INCENTIVES

LINCOLN — The Nebraska Legislature is trying to clean up a new law meant to be tough on foreign adversaries. State Sen. Eliot Bostar of Lincoln, who authored the Foreign Adversary and Terrorist Agent Registration Act that passed in 2025 with Gov. Jim Pillen’s blessing, offered an amendment to an unrelated bill this year, Legislative Bill 1096, that would tweak a definition to fix the issue.

His Amendment 2313 came up during the public hearing for the broader LB 1096 on Thursday in the Legislature’s Judiciary Committee. The broader bill aims to protect the state’s agriculture and economy by criminalizing the illegal import of dangerous pathogens or pests.

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TENSION BUILDS OVER DISAGREEMENTS ON HOW TO ADDRESS DEFICIT

LINCOLN — State budget tensions boiled over onto the floor of the Nebraska Legislature Thursday in the aftermath of lawmakers’ rejecting a $50 million proposal to increase the state’s cigarette tax. Lawmakers appear to be in a standoff over options to help fill the state’s projected budget deficit, which is listed at $125 million but in reality is closer to $140 million. Senators have plenty of avenues to solve the issue, but do any of them have enough support to pass?

On Thursday, several lawmakers expressed frustration over Wednesday’s vote. State Sen. Myron Dorn of Adams, who sits on the Appropriations Committee, said he plans to propose several options in committee that he previously did not support and feels he has no other choice but to back.

“Some of these other things I will vote for now that I had voted against,” Dorn said.

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APPROPRIATIONS COMMITTEE ADVANCES BUDGET ADJUSTMENTS, LEAVING $125 MILLION HOLE TO FILL

LINCOLN — A pair of budget bills in the Nebraska Legislature officially moved toward floor debate, but lawmakers still must close a projected budget deficit that is larger than it appears. The Appropriations Committee voted Wednesday to advance Legislative Bills 1071 and 1072 to the floor. The bills contain lawmakers’ proposed budget adjustments for the 2025-2027 biennium.

The committee’s approved adjustments leave a projected budget deficit of $125 million, which lawmakers will attempt to fill by March 25. But because of some math mistakes that have since been fixed, the shortfall stands at approximately $140 million, according to Legislative Fiscal Analyst Keisha Patent.

To review the proposed Appropriations Committee Biennial Budget Adjustments document, please click HERE

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