NebraskaLB260109th Legislature 1st and 2nd SessionslegislatureWALLET

Provide, change, and eliminate provisions relating to appropriations

Sponsored By: John Arch

Signed by Governor

Appropriations Committee

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Bill Overview

Analyzed Economic Effects

14 provisions identified: 11 benefits, 1 costs, 2 mixed.

More Medicaid and CHIP funding and quit help

The law updates Medicaid funding for FY2023-24 and FY2024-25. It sets aside $450,000 each year for tobacco‑use counseling and FDA‑approved quit‑smoking medicines. For children’s coverage, CHIP gets $23.3 million in FY2024-25 ($6 million General Funds, $3 million Cash Funds, and $14.3 million federal). These dollars support coverage and services for enrolled families.

Higher pay and support for Medicaid providers

Medicaid raises some provider payments. Dental rates go up 12.5% in FY2024-25. The state sets $2,510,597 in General Funds and $4,466,385 in federal funds to pay dispensing fees to independent pharmacies in FY2024-25. The law uses $449,351,518 each year in nursing facility rate calculations and requires inflation and year-end reports through June 30, 2025. It also increases hospital-related state aid to $632.5 million in cash funds and $1.45 billion in federal funds for FY2024-25.

Bigger K-12 and college aid package

For FY2024-25, K‑12 state aid totals $1.277 billion in General Funds, $327.9 million in Cash Funds, and $331.9 million in federal funds. It includes foundation aid, special education, school meals, early childhood grants, and career‑technical education. Career‑technical education adds $4,809,040 each year, with at least $7,500 for every school district. The State Treasurer transfers $5 million to the Education Future Fund by June 30, 2025. Community colleges also get levy‑reduction aid, estimated at about $6.82 million in FY2024‑25, limited to certified amounts.

State pensions get extra funding

The law adds General Funds to state retirement systems. School Employees receive $45.82 million in FY2023‑24 and $47.73 million in FY2024‑25. Omaha School Employees receive $9.76 million and $10.34 million. State Patrol receives $4.09 million and $7.25 million. Judges receive $1.30 million and $1.37 million. Each amount must support only the named system.

More community care for people with disabilities

DHHS can move unspent Medicaid funds from FY2023-24 and FY2024-25 into Developmental Disability Aid. The money can only keep people with intellectual or developmental disabilities in Medicaid services that cost less than institutional care. Transfers require DHHS certification and an administrative move by the budget office.

More state aid for child welfare

Child Welfare Aid gets $15 million in General Funds for FY2024-25. The money is for state aid only and supports services for children and families in the child welfare system.

State parks operations get more money

For FY2024‑25, state parks operations receive $7,816,945 in General Funds and $26,847,402 in Cash Funds. The total program funding is $34,714,347. This supports park administration and daily operations.

Caps on state employee salary spending

The law caps total spending on salaries and per diems at the amounts shown in this act. Employer payments for Social Security, retirement, and insurance do not count toward the cap. Agencies may go over the cap only with extra federal funds and the Governor’s approval. Money in the amended LB1087A section cannot be used for any salaries or per diems.

Rules for unspent funds and ARPA carryover

Unspent state appropriations above certified encumbrances on June 30, 2023 lapse unless this act says otherwise. Certified encumbrances on June 30, 2023 and June 30, 2024 are reappropriated to FY2023‑24 and FY2024‑25. Unspent balances on June 30, 2024 are reappropriated for FY2024‑25 to the listed programs. Any unspent federal ARPA State Fiscal Recovery funds are also reappropriated for FY2023‑24 and FY2024‑25, with original limits unless changed by law.

Grants boost food aid through nonprofits

The state provides $10 million in federal TANF funds in FY2023‑24 for grants to 501(c)(3) groups that distribute food in at least 10 Nebraska counties and qualify for the USDA Emergency Food Assistance Program. These grants increase food supplies for low‑income households across the state.

Property tax help for homeowners

The Homestead Exemption program gets $2 million in General Funds for FY2024-25. This money must be used for state aid under the program. Eligible homeowners receive property tax relief through the exemption.

Grants for at-risk infants and toddlers

The state provides $7.5 million each year in FY2023‑24 and FY2024‑25 for early childhood grants serving at‑risk children from birth to age three. Up to 5% of each year’s funds may pay for evaluation and technical help.

More reporting on Medicaid expansion

DHHS must email monthly reports to the Legislature on Medicaid expansion. Reports cover policy decisions on services, community engagement, wellness rules, and rate setting. This increases oversight and transparency.

Takes effect now and repeals sections

The law takes effect immediately under the emergency clause. It also repeals listed sections from earlier laws and statutes named in this act.

Sponsors & Cosponsors

Sponsor

  • John Arch

    legislature

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 232 • No: 7

legislature vote 4/24/2026

Vote

Yes: 37 • No: 0 • Other: 12

legislature vote 4/24/2026

Vote

Yes: 38 • No: 0 • Other: 11

legislature vote 5/15/2025

Final Reading

Yes: 41 • No: 7 • Other: 1

legislature vote 5/9/2025

Vote

Yes: 38 • No: 0 • Other: 11

legislature vote 5/7/2025

Vote

Yes: 41 • No: 0 • Other: 8

legislature vote 5/7/2025

Vote

Yes: 37 • No: 0 • Other: 12

Actions Timeline

  1. Approved by Governor on May 21, 2025

    5/27/2025legislature
  2. Presented to Governor on May 15, 2025

    5/19/2025legislature
  3. Dispensing of reading at large approved

    5/15/2025legislature
  4. Passed on Final Reading with Emergency Clause 41-7-1

    5/15/2025legislature
  5. President/Speaker signed

    5/15/2025legislature
  6. Placed on Final Reading

    5/12/2025legislature
  7. Enrollment and Review ER78 adopted

    5/9/2025legislature
  8. Clements FA156 withdrawn

    5/9/2025legislature
  9. Clements AM1362 filed

    5/9/2025legislature
  10. Clements AM1362 adopted

    5/9/2025legislature
  11. Advanced to Enrollment and Review for Engrossment

    5/9/2025legislature
  12. Placed on Select File with ER78

    5/8/2025legislature
  13. Enrollment and Review ER78 filed

    5/8/2025legislature
  14. Appropriations AM831 pending

    5/7/2025legislature
  15. Appropriations AM831 adopted

    5/7/2025legislature
  16. Advanced to Enrollment and Review Initial

    5/7/2025legislature
  17. Placed on General File with AM831

    4/29/2025legislature
  18. Appropriations AM831 filed

    4/29/2025legislature
  19. Clements FA156 to AM831 filed

    4/29/2025legislature
  20. Notice of hearing for February 18, 2025

    2/4/2025legislature
  21. Referred to Appropriations Committee

    1/17/2025legislature
  22. Date of introduction

    1/15/2025legislature

Bill Text

  • Introduced

    5/27/2025

  • Enrolled / Slip Law

  • Final / Enacted

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