All Roll Calls
Yes: 171 • No: 1
NebraskaLB1209109th Legislature 1st and 2nd SessionslegislatureWALLET
Provide and change appropriations for purposes of carrying out legislation and change provisions relating to appropriations and a transfer of funds
Sponsored By: Robert Clements
Signed by Governor
Appropriations Committee
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Bill Overview
Analyzed Economic Effects
16 provisions identified: 11 benefits, 2 costs, 3 mixed.
Big funding for business recruitment
The state provides $50 million in project aid in FY2025-26 and $50 million in FY2026-27 from the Transformational Project Fund. Industrial recruitment aid includes large Cash and Federal Funds across FY2025-26 and FY2026-27. ImagiNE Nebraska adds $4 million in FY2025-26 for state aid. These funds back eligible projects and business growth.
Medicaid funding set for 2026-27
The law sets Medicaid money for FY2026-27 at $5.186 billion. The state share is $843.5 million and federal funds are estimated at $3.614 billion. These amounts set how much the program can pay providers and plans this year.
More support for long‑term and behavioral health
Medicaid pays assisted‑living facilities a daily rate of $73.91 in FY2025-26 and FY2026-27 for single‑occupancy waiver days. DHHS sets aside $1.5 million in FY2025-26 to repay non‑hospital mental health providers when Medicare pays less than Medicaid for dual‑eligible patients. DHHS also provides $470,000 for behavioral health aid in FY2026-27. Unused Medicaid funds can be moved to Developmental Disability Aid to keep people with intellectual or developmental disabilities in the most suitable Medicaid program at no higher cost than institutions.
Environmental grants and aid maintained
Environmental Quality (Program 513) has about $93.9 million in FY2025-26 and $94.4 million in FY2026-27. The law reserves money only for state aid: $18.6 million in Cash Funds plus about $24.5 million in Federal Funds each year. These funds support pollution control, clean water, and related grants.
Wastewater grant for impacted city
A $38 million federal grant is available in FY2026-27 for a city of the first class that runs a public wastewater plant with an NPDES permit. The city must show added industrial load from a calcium caseinate food plant that strained capacity or compliance. The city must provide a one‑to‑one funding match.
Move $45M from tobacco trust
Between July 1, 2026 and June 30, 2027, $45 million moves from the Tobacco Settlement Trust Fund to the General Fund. The budget administrator chooses the timing and amounts of the transfers within that window.
Rules to carry over unspent funds
Unspent amounts on June 30, 2025 lapse unless already spent or encumbered. Certified encumbrances on June 30, 2025 and June 30, 2026 are reappropriated into FY2025-26 and FY2026-27. All unspent balances on June 30, 2026 are also reappropriated for FY2026-27. Leftover ARPA federal funds from earlier allocations remain available in FY2025-26 and FY2026-27 under the same limits unless this law says otherwise.
Labor department enforcement funding changes
Department of Labor Program 194 totals $2,274,819 in FY2025-26, with $764,157 from the General Fund. In FY2026-27, the total is $2,538,384, funded with $1,709,750 in Cash Funds and no General Fund. This keeps enforcement and protection functions operating.
Small funding for State Patrol
For FY2026-27, the State Patrol Program 100 gets $113,706 from the General Fund and $85,500 in Cash Funds, for a total of $199,206. The salary limit for the program is $76,889.
Lead pipe replacement grants continue
Up to $6 million in unspent Cash Funds as of June 30, 2025 is reappropriated for grants to metropolitan utilities districts. The money replaces lead service lines under state law. This keeps health‑focused water work moving without new appropriations.
Small funds for retirement office
The Public Employees Retirement Board receives $7,500 in FY2026-27 to run retirement and deferred compensation administration. This supports recordkeeping and service for public employee plans.
Soil and water conservation funding
Soil and Water Conservation (Program 334) gets $9.65 million from the General Fund in FY2025-26 and $9.76 million in FY2026-27. Each year includes $7.45 million in Cash Funds for state aid and a small federal estimate. Another $353,000 in FY2026-27 pays to remove riparian vegetation when the program’s main goal is improving streamflow. Unspent Program 334 funds on June 30, 2025 are moved from Natural Resources to Water, Energy, and Environment for the same subprograms (19, 20, 21, 24).
Earlier reports on Medicaid inflation
DHHS must report how it calculates the Medicaid inflation factor earlier. The FY2025-26 report is due by August 1, 2025. The FY2026-27 report is due by June 15, 2026.
Job training funds for 2026-27
The Department of Labor gets $6.5 million in FY2026-27 for employment programs. Of this, $4.0 million is state aid for workforce development. No Cash Funds are provided for FY2025-26.
Cap on state employee pay
State programs have a cap on total salaries and per diems. The cap excludes employer Social Security, retirement, and insurance contributions. The governor may allow more if extra federal funds cover it. The budget office can raise caps for certified leave payouts and certain encumbrances.
Liquor Commission budget adjustments
For FY2026-27, the Liquor Control Commission gets $2,714,207 from the General Fund and $400,000 in Cash Funds. The total is $3,114,207. This shifts funding sources while keeping the program funded.
Sponsors & Cosponsors
Sponsor
Robert Clements
Senate
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
legislature vote • 4/10/2026
Final Reading
Yes: 48 • No: 1
legislature vote • 4/8/2026
Vote
Yes: 43 • No: 0 • Other: 6
legislature vote • 3/26/2026
Vote
Yes: 37 • No: 0 • Other: 12
legislature vote • Unknown
Vote
Yes: 43 • No: 0 • Other: 6
Actions Timeline
Provisions/portions of LB1235A amended into LB1209 by rules suspension
4/17/2026legislatureProvisions/portions of LB1101A amended into LB1209 by rules suspension
4/17/2026legislatureProvisions/portions of LB901A amended into LB1209 by rules suspension
4/17/2026legislatureProvisions/portions of LB867A amended into LB1209 by rules suspension
4/17/2026legislatureProvisions/portions of LB847A amended into LB1209 by rules suspension
4/17/2026legislatureProvisions/portions of LB759A amended into LB1209 by rules suspension
4/17/2026legislaturePresented to Governor on April 10, 2026
4/17/2026legislatureApproved by Governor on April 16, 2026
4/16/2026legislaturePresident/Speaker signed
4/10/2026legislaturePassed on Final Reading with Emergency Clause 48-1-0
4/10/2026legislatureDispensing of reading at large approved
4/10/2026legislatureEnrollment and Review ST98 recorded
4/8/2026legislatureEnrollment and Review ST98 filed
4/8/2026legislaturePlaced on Final Reading with ST98
4/8/2026legislatureAdvanced to Enrollment and Review for Engrossment
4/8/2026legislatureClements AM3133 adopted
4/8/2026legislatureKauth FA869 withdrawn
4/8/2026legislatureClements AM3133 filed
4/7/2026legislatureClements motion to suspend the rules to allow for the A bill for LB867 to be indefinitely postponed and for the appropriations for this bill to be contained in LB1209 prevailed
4/1/2026legislatureClements motion to suspend the rules to allow for the A bill for LB867 to be indefinitely postponed and for the appropriations for this bill to be contained in LB1209 filed
3/31/2026legislaturePlaced on Select File
3/30/2026legislatureClements motion to suspend the rules to allow for the A bills for LBs 759, 847, 901, 1101, and 1235, to be indefinitely postponed and for the appropriations for these bills to be contained in LB1209 prevailed
3/26/2026legislatureAdvanced to Enrollment and Review Initial
3/26/2026legislatureClements motion to suspend the rules to allow for the A bills for LBs 759, 847, 901, 1101, and 1235, to be indefinitely postponed and for the appropriations for these bills to be contained in LB1209 filed
3/23/2026legislaturePlaced on General File
3/23/2026legislature
Bill Text
Introduced
1/21/2026
Enrolled / Slip Law
Final / Enacted
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