NEBRASKA SENATORS DIVIDED OVER PILLEN'S CALL FOR MORE BUDGET CUTS

LINCOLN—Nebraska lawmakers are divided over Gov. Jim Pillen's directive requiring state agencies to cut 5% of their state-funded budgets and implement a hiring freeze after state tax collections came in $307 million below projections through June 30. The move comes just months after the Legislature closed the 2026 session by eliminating a $471 million budget deficit and ending with a small surplus, though the next biennium is already projected to face a $630 million shortfall.

The cuts could have a significant impact on major agencies. The Nebraska Department of Health and Human Services could be required to reduce state-funded spending by more than $152 million, while the Department of Correctional Services could face nearly $19 million in cuts, and the Nebraska State Patrol more than $6 million. The Nebraska Association of Public Employees warned the reductions and hiring freeze could worsen staffing shortages and increase workloads for state employees.

Republican and conservative-leaning lawmakers, including Sens. Kathleen Kauth and Myron Dorn, defended the governor's actions as a practical and proactive response to declining revenues, arguing agencies should identify efficiencies before the Legislature reconvenes. Democratic Sens. Ashlei Spivey and Danielle Conrad criticized the approach, blaming recent income tax cuts for the state's fiscal challenges and arguing that continued budget reductions threaten services for vulnerable Nebraskans. Conrad also questioned whether Pillen has the authority to effectively reduce spending already approved by the Legislature, calling the state's shift from a record surplus to a large projected deficit a sign of fiscal mismanagement rather than sound budgeting.

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OMAHA JOINS LINCOLN IN RESTORING $15 MINIMUM WAGE FOR ALL WORKERS

OMAHA— The Omaha City Council voted 4-3 to approve an ordinance keeping the city's minimum wage at $15 per hour for all workers, mirroring a similar ordinance adopted by Lincoln. The measure rejects changes made by the Nebraska Legislature earlier this year, which created a $13.50 minimum wage for workers under age 16 and capped future minimum wage increases at 1.75% annually instead of tying them to inflation.

Supporters, led by Council President Danny Begley, argued the ordinance honors the will of Omaha voters, who overwhelmingly approved the 2022 ballot initiative raising the minimum wage to $15 for all workers. Opponents, including Councilmembers Aimee Melton and Don Rowe, contended the city lacks the legal authority to adopt a policy that conflicts with state law and argued Omaha should have waited for the outcome of the state's lawsuit challenging Lincoln's nearly identical ordinance.

The vote comes as Nebraska Attorney General Mike Hilgers seeks to block Lincoln's ordinance in court. A judge has not yet ruled on the state's request for an injunction, meaning the legal battle over whether cities can maintain higher local minimum wage standards is expected to continue.

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NEBRASKA AUDITOR WARNS OF RISE IN ALLEGED MISUSE OF PUBLIC FUNDS BY LOCAL OFFICIALS

LINCOLN— Nebraska State Auditor Mike Foley is raising concerns about an increase in alleged misuse of public funds by local government employees, citing several recent investigations into personal spending on government credit cards and cash. Foley said his office has identified financial improprieties involving the villages of Merriman, Herman, and Alvo, the City of David City, and the Plains Historical Society, arguing that stronger oversight is needed to protect taxpayer dollars.

Among the cases, Foley's office alleged that a Herman village clerk made about $2,000 in personal purchases on a municipal credit card, though village officials said the charges resulted from billing errors and have since been repaid. In David City, officials said they cooperated with an investigation into an alleged $5,800 misappropriation by a former clerk-treasurer and have since implemented stricter financial controls, including multiple approvals for checks, payroll, and credit card use. Foley urged all local governments to strengthen internal controls to help prevent fraud and misuse of public funds.

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NEBRASKA AND IOWA TEAM UP TO BOOST RURAL BIOECONOMY WITH $15 MILLION FEDERAL GRANT

LINCOLN— The National Science Foundation has awarded RuralSTAMINA a $15 million, two-year grant to help grow Nebraska and Iowa's bioeconomy by supporting startups, students and researchers developing products from agricultural materials. Based at Iowa State University, the coalition includes about 70 partners, including the University of Nebraska-Lincoln, and could receive up to $160 million over 10 years if the initiative is successful.

Researchers say the funding will help commercialize innovations that turn crops into products such as biofuels, pharmaceuticals, plastics, textiles, paper, and vaccine components, while attracting venture capital and creating rural jobs. UNL biochemist Nicole Buan said the effort is designed to grow small biomanufacturing companies close to the region's agricultural feedstocks, strengthening Nebraska's rural economy. Sen. Deb Fischer said the investment builds on Nebraska and Iowa's agricultural strengths and will boost innovation, manufacturing, and the farm economy.

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US HOUSE PASSES BIPARTISAN BILL TO MAKE DAYLIGHT SAVING TIME PERMANENT

WASHINGTON D.C.— The U.S. House voted 308-117 to pass the Sunshine Protection Act, which would make daylight saving time permanent nationwide and eliminate the twice-yearly clock changes. The bipartisan bill, sponsored by Rep. Vern Buchanan (R-Fla.), has the backing of President Donald Trump, but it still must pass the Senate, where its prospects remain uncertain.

Supporters argue that permanent daylight saving time would provide more evening daylight, encourage outdoor activity, and benefit businesses and the economy. Opponents, however, point to research from medical organizations that permanent standard time is healthier because it provides more morning sunlight, improving sleep and natural body rhythms. Critics also cite safety concerns from the U.S.'s brief experiment with permanent daylight saving time in 1974, when darker mornings were linked to accidents involving schoolchildren. If enacted, Hawaii and most of Arizona could remain on permanent standard time, as they already do not observe daylight saving time.

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TWELFTH NEBRASKA COUNTY TEMPORARILY BANS DATA CENTERS

LOGAN COUNTY— The Logan County Board of Commissioners voted to impose a 12-month moratorium on new data centers, as well as wind, solar, and cryptocurrency mining projects, becoming the 12th Nebraska county to temporarily pause such developments. County officials said the moratorium will give them time to update zoning regulations and their comprehensive plan to address issues such as water use, electricity demand, and land use before approving new projects.

The move reflects a broader statewide trend as counties respond to growing interest from data center developers following new state legislation. While some developers have warned that moratoriums could make counties appear unfriendly to business, Logan County officials said the pause is temporary and intended only to establish clear local regulations. Meanwhile, Lincoln County recently rejected a similar moratorium, arguing its current regulations are sufficient, though officials continue to refine their zoning rules amid ongoing public concern over large-scale data center development.

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UNIVERSITY OF NEBRASKA CAMPUSES FACE $29 MILLION IN CUTS FOLLOWING GOV. PILLEN MEMO

LINCOLN— The University of Nebraska's four campuses are expected to absorb nearly $29 million in budget cuts after Gov. Jim Pillen directed state agencies to reduce spending by 5%. The University of Nebraska-Lincoln faces the largest reduction at $13.9 million, followed by UNMC ($8.9 million), UNO ($3.7 million) and UNK ($2.5 million). In response, UNL said it will delay investments in classrooms, technology and infrastructure, while still honoring planned employee pay raises.

Interim Chancellor Katherine Ankerson called the reductions a significant setback, noting they come after $27.5 million in cuts last year that eliminated four academic departments. University leaders, including NU President Jeff Gold, warned that continued funding reductions threaten the university's ability to educate students, conduct research and drive Nebraska's economy, arguing that repeated budget cuts are unsustainable and undermine the institution's long-term mission.

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FORMER STATE SEN. BRETT LINDSTROM JOINS RACE FOR GOVERNOR AS INDEPENDENT CANDIDATE

OMAHA- Former State Sen. Brett Lindstrom has launched an independent petition campaign for Nebraska governor, setting up a potential three-way race against incumbent Gov. Jim Pillen and Democratic candidate Lynne Walz. After leaving the Republican Party earlier this year, Lindstrom said Nebraska needs "another choice" and criticized the state's fiscal management and economic direction. To qualify for the November ballot, he must gather 4,000 valid signatures by Aug. 3. His running mate is former Republican Mike Picard, a Navy veteran and youth sports advocate. Pillen's campaign dismissed Lindstrom's candidacy as politically motivated, while Walz's campaign argued that despite his party switch, Lindstrom's legislative record remains firmly conservative.

Lindstrom, who lost to Pillen in the 2022 Republican gubernatorial primary, is attempting to capitalize on dissatisfaction with the governor while distancing himself from partisan politics. Pillen's campaign criticized Lindstrom as a career politician with no viable path to victory. Political experts interviewed by the Omaha World-Herald said Lindstrom faces long odds, noting that independent candidates struggle to overcome Nebraska's strong Republican advantage and the lack of a party organization. Still, they acknowledged Pillen's low approval ratings could create an opening if Lindstrom is able to build enough support among dissatisfied voters. Lindstrom previously ran for the 2nd congressional district seat in this year's primary election, dropping out before election day, also having unsuccessfully run for the seat in the 2012 GOP primary. He was elected to the Nebraska Legislature in 2014, serving the state's 18th district for 8 years before facing term limits. 

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SIGNATURES TURNED IN FOR MEASURES TO RESTRICT NEBRASKA LAWMAKERS' ABILITY TO CHANGE VOTER-PASSED LAWS

SIGNATURES TURNED IN FOR MEASURES TO RESTRICT NEBRASKA LAWMAKERS' ABILITY TO CHANGE VOTER-PASSED LAWS

LINCOLN— A coalition called Respect Nebraska Voters submitted more than 186,500 signatures to place a constitutional amendment on the November ballot that would make it significantly harder for the Nebraska Legislature to change voter-approved laws. The proposal would raise the threshold for amending or repealing citizen-approved statutes from 33 to 40 of the Legislature's 49 senators and would also prohibit lawmakers from passing laws that restrict or burden the ballot initiative process. Supporters say the measure is a response to legislative changes made to voter-approved policies on paid sick leave and the minimum wage, arguing it will better protect the will of Nebraska voters. 

Backers, including Jo Giles and the Nebraska State AFL-CIO, say the amendment ensures that lawmakers respect decisions made at the ballot box and prevents future legislative interference with initiatives such as medical cannabis, casino gambling, and labor protections. However, some lawmakers, including State Sen. Machaela Cavanaugh, argue the proposal goes too far, warning that requiring 40 votes could make necessary changes to voter-approved laws nearly impossible, even in unforeseen circumstances. The campaign now awaits signature verification to determine whether the measure will appear on the November ballot.

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NEBRASKA SECRETARY OF STATE SAYS RNC LAWSUIT OVER STATE ELECTION LAW IS 'A LITTLE BAFFLING'

LINCOLN— Outgoing Bob Evnen questioned a lawsuit filed by the Republican National Committee that seeks to strike down a Nebraska law allowing U.S. citizens who have never lived in the United States to vote in Nebraska if one of their parents is a registered Nebraska voter. Evnen said the provision is rarely, if ever, used and was surprised it had become a legal priority, especially as election officials face other challenges involving voter verification systems.

The lawsuit argues the law violates the Nebraska Constitution because voting should be tied to residency. The provision dates back to a 2005 bill sponsored by Deb Fischer, which was intended to help Americans living overseas participate in elections. Evnen said if a court determines the law is unconstitutional, the state will stop registering voters under that provision. The lawsuit has drawn support from Republican Secretary of State nominee Scott Petersen, while Democratic nominee Sarah Slattery criticized it as an effort to target voters. Similar lawsuits have been filed by the RNC in several other states, with mixed results in court.

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NONPARTISAN CANDIDATE MACEY BUDKE WILL RUN WRITE-IN CAMPAIGN FOR NEBRASKA'S 3RD DISTRICT

LINCOLN— Nonpartisan congressional candidate Macey Budke announced she will continue her campaign for Nebraska's 3rd Congressional District as a write-in candidate after determining she would not collect the 2,000 valid signatures required to appear on the November ballot. Budke said her volunteer-run campaign lacked the infrastructure and resources to gather signatures across the large, predominantly rural district, but emphasized that the decision is a strategic shift rather than an end to her campaign.

Budke is one of several challengers seeking to unseat incumbent Republican U.S. Rep. Adrian Smith. Fellow nonpartisan candidate Mark Cohen is still collecting signatures to qualify for the ballot, while Becky Stille is the Democratic nominee and David J. Else is running on the Legal Marijuana NOW Party ticket. The general election is scheduled for Nov. 3.

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PETE BUTTIGIEG HEADING TO OMAHA TO STUMP FOR DENISE POWELL IN NEBRASKA CD2 RACE

OMAHA— Former U.S. Transportation Secretary Pete Buttigieg has endorsed Democratic congressional candidate Denise Powell in Nebraska's 2nd Congressional District and plans to campaign with her in Omaha on July 14. Buttigieg praised Powell as a strong advocate for Nebraska families and said she would focus on lowering the cost of everyday expenses such as groceries and housing.

Powell, who won a crowded Democratic primary, will face Republican Brinker Harding in the November general election. Harding has been endorsed by President Donald Trump and supported by Nebraska's Republican elected officials, while Buttigieg's endorsement underscores the national attention on the competitive Omaha-area congressional race. Democrats have not held the seat since Brad Ashford was elected in 2014.

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PILLEN TALKS PRIORITIES, PIVOT FROM NEBRASKA PRIMARY ELECTION TO NOV. 3 FACEOFF

LINCOLN— Nebraska Gov. Jim Pillen said his reelection campaign will focus on many of the same priorities from his first term, including additional tax cuts, reducing state spending, property tax relief, improving school discipline, expanding school choice, overhauling K-12 school funding, further restricting abortion, and changing Nebraska's method of allocating presidential electoral votes. Pillen also suggested lowering the state's top income tax rate by another 1% and broadening the sales tax base to help offset budget pressures while continuing efforts to reduce government spending. 

Pillen defended his administration's cost-cutting measures, including changes to Medicaid waiver programs, saying they improve efficiency while maintaining necessary services. He also reaffirmed his support for lowering the legislative vote threshold to overcome filibusters, arguing it would help pass key priorities that previously fell short. On the campaign trail, Pillen expressed confidence in his reelection prospects against Democratic nominee Lynne Walz and Legal Marijuana NOW candidate Rick Beard, highlighting his record fundraising advantage and confirming he will once again decline to participate in debates with his opponents.

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AUSTIN AHLMAN SAYS HE HAS ENOUGH SIGNATURES TO BE ON THE BALLOT FOR NEBRASKA'S 1ST DISTRICT

LINCOLN— Independent candidate Austin Ahlman says he has collected more than the 2,000 signatures required to qualify for Nebraska's 1st Congressional District ballot this November, though his campaign plans to keep gathering signatures before the Aug. 3 filing deadline. If certified, Ahlman will join Republican incumbent Rep. Mike Flood, Democratic nominee Chris Backemeyer, and Libertarian Nik Sandman in a four-way race.

Ahlman, a journalist who entered the race after the May primary, said his campaign has seen strong grassroots support. However, Nebraska Democrats have criticized his candidacy, arguing it could split the anti-Flood vote. Despite the additional candidate, political analysts continue to rate the 1st District as safely Republican, with Flood having won his previous two elections by comfortable double-digit margins.

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REP. MIKE FLOOD 'CONFIDENT' HOUSING BILL WILL BECOME LAW WITHOUT PRESIDENT'S SIGNATURE

OMAHA— Rep. Mike Flood said he is confident the bipartisan 21st Century ROAD to Housing Act will become law by the end of the week, even if President Donald Trump does not sign it. Under the Constitution, the bill will automatically become law if the president neither signs nor vetoes it within the required timeframe. Flood said he has been assured by House leadership and the White House that the bill will take effect and believes Congress could override a veto if necessary.

Flood, who chairs the House Housing and Insurance Subcommittee, highlighted the legislation as a major bipartisan achievement. The bill aims to encourage housing construction, reduce regulatory barriers, and limit large institutional investors from purchasing single-family homes. He praised his partnership with Democratic Rep. Emanuel Cleaver, saying both focused on passing meaningful housing legislation rather than partisan messaging.

Flood made the remarks during a housing event in Papillion after touring Habitat for Humanity’s Tallgrass development with local officials, including Omaha Mayor John Ewing. Housing leaders said the project demonstrates how federal policy, local leadership, and nonprofit partnerships can work together to expand affordable housing opportunities.

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NEBRASKA THC SHOPS CHALLENGE, QUESTION PROPOSED LAW ON HEMP-DERIVED EDIBLES

LINCOLN— Nebraska hemp businesses are pushing back against a proposed rule from the Nebraska Department of Agriculture that would ban THC-infused foods and drinks, including gummies and beverages. Industry representatives argued at a public hearing that the change would force businesses to close, hurt the state’s economy, and limit access to alternative wellness products used for stress, anxiety, and sleep.

The proposed rule stems from an executive order by Gov. Jim Pillen, who says the products pose risks to children and consumers. Attorney General Mike Hilgers has also been a longtime critic of THC products. Nearly 500 people submitted comments opposing the rule, while business owners said they already restrict sales to customers 21 and older and support reasonable regulations rather than an outright ban.

Industry advocates also questioned whether the Department of Agriculture has the legal authority to prohibit THC food products without action from the Legislature. They warned the rule could jeopardize an industry that contributes millions of dollars in taxes and economic activity across Nebraska.

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JUDGE HALTS TRANSFER OF FUNDS FROM ENVIRONMENTAL TRUST TO NEBRASKA'S GENERAL FUND

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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NU REGENTS APPROVE NEW TEMPORARY PARTNER IN NEBRASKA MEDICINE

LINCOLN— The University of Nebraska Board of Regents approved a 90-day temporary governance agreement that gives the Omaha Community Foundation a shared leadership role in Nebraska Medicine while negotiations continue on a permanent partnership. Under the interim structure, the foundation and the university will each appoint two voting members to Nebraska Medicine's board through Sept. 30.

The move comes as Clarkson Regional Health Services exits its co-ownership of Nebraska Medicine after nearly two years of planning. Earlier this year, the regents voted to become the sole owner of the health system, but that proposal faced legal challenges and criticism from Nebraska Medicine leaders, lawmakers and philanthropists who worried the university could eventually use the health system's finances to address its own budget issues.

NU President Dr. Jeffrey Gold said the Omaha Community Foundation was chosen because of its strong ties to Nebraska's philanthropic community and its long history of supporting UNMC and Nebraska Medicine. Gold said the next 90 days will determine whether the partnership becomes permanent, with both sides aiming to create a governance model that ensures long-term stability while keeping Nebraska Medicine focused on patient care, education and research.

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NEW PARTY PETITIONS TO MAKE NOVEMBER BALLOT, CAUSING PARTISAN FINGER-POINTING

LINCOLN— A group is attempting to form a new political organization called the Nebraska Working People Party ahead of Nebraska's November elections. State filings identify legislative write-in candidate Robin Richards as the sponsor. According to the filing, the party aims to represent working families, rural communities, small businesses, farmers, ranchers, and others seeking economic opportunity and accountable government.

Petition circulators have begun gathering signatures in Omaha and Lincoln, though some appeared to know little about who was organizing the effort. At one event, the petition table displayed left-wing messaging supporting a new working-class party, criticizing capitalism, and advocating for abolishing ICE. Richards previously ran as a write-in candidate for the Legislature after her filing fee check bounced and later endorsed incumbent Merv Riepe.

The effort has sparked political backlash. Jane Kleeb accused the new party of being a spoiler designed to help Pete Ricketts, while the Nebraska Republican Party denied any involvement. Nebraska Democratic Party Vice Chair Ron Kaminski also criticized the effort, calling it misleading and politically motivated. Organizers must submit enough petition signatures by July 15 for the party to qualify for the November ballot.

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U.S. SUPREME COURT LETS NEBRASKA-COLORADO SOUTH PLATTE RIVER, PERKINS COUNTY CANAL CASE PROCEED

LINCOLN— The U.S. Supreme Court has agreed to hear Nebraska's lawsuit against Colorado over alleged violations of the 1923 South Platte River Compact and disputes surrounding the proposed Perkins County Canal. The Court granted Nebraska permission to file its complaint, and Colorado has 30 days to respond. A special master will oversee the case, which could take years to resolve.

Nebraska Attorney General Mike Hilgers argues that Colorado has improperly allowed newer water users to take water that should have priority under the compact, depriving Nebraska of its rightful share. Colorado Attorney General Phil Weiser denies the allegations, saying the state is complying with the compact and not obstructing Nebraska's canal plans. While the federal solicitor general recommended the Court hear only Nebraska's claims about irrigation-season water deliveries, the dispute over the Perkins County Canal remains a central issue in the case.

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