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NebraskaLB260109th Legislature 1st and 2nd SessionslegislatureWALLET

Provide, change, and eliminate provisions relating to appropriations

Sponsored By: Speaker Arch

Signed by Governor

Appropriations Committee

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Bill Overview

Analyzed Economic Effects

34 provisions identified: 29 benefits, 1 costs, 4 mixed.

More Medicaid money for 2024–25

Medicaid funding rises for FY2024–25. The state provides about $1.06 billion from the General Fund. The federal share is estimated at about $2.04 billion. Total Medicaid funding is about $3.17 billion for the year. The funding mix shifts more to the state while keeping services and provider payments supported.

Funding for public assistance

The state sets Public Assistance funding at about $232.39 million in FY2023–24 and $218.59 million in FY2024–25. These dollars support aid programs run by Health and Human Services. Funds flow through existing programs like TANF grants and respite services.

More hospital and Medicaid funding under LB1087

The law provides major hospital and Medicaid funding to carry out LB1087. For FY2024-25 it adds $617.5 million from a hospital assessment fund, $15 million from a Medicaid profit fund, and $1.45 billion in federal money. For FY2025-26 it adds $632.5 million from the hospital assessment fund and $1.45 billion in federal money.

More K-12 aid and special education

The state increases core school aid and special education support. Public schools get $1.028 billion in FY2023-24 and $1.0095 billion in FY2024-25 under the main formula. Foundation aid gets about $112.35 million in FY2023-24 and $112.31 million in FY2024-25 from cash funds. Special education reimbursement gets $235.7 million General Funds each year plus $226.6 million in FY2023-24 and $273.6 million in FY2024-25 from cash funds.

State aid for public schools

Education aid totals about $1.97 billion in FY2023–24 and about $2.02 billion in FY2024–25. This money supports K–12 state aid, special education, early childhood, and school meals. Funds flow to public school districts and related programs.

Higher Medicaid pay for dentists, pharmacies

For FY2024-25, Medicaid dental reimbursement rates increase by 12.5%, funded with $3,054,187 General Funds and $5,611,661 Federal Funds. The law also provides $2,510,597 General Funds and $4,466,385 Federal Funds to support dispensing fees for independent pharmacies. This helps providers and supports patient access to care and medicines.

Keep people with disabilities in community Medicaid

DHHS can transfer unspent Medicaid funds in FY2023-24 and FY2024-25 to Developmental Disability Aid. The money must keep people with intellectual or developmental disabilities in the Medicaid program that best meets their needs, if costs do not exceed institutional care.

Nursing home payment rules and reports

The law sets $449,351,518 each year to be used in Medicaid nursing facility rate calculations, including inflation. DHHS must report by August 1, 2023 and August 1, 2024 how it set the inflation factor. Each year between December 15 and 31, DHHS must report any unspent nursing facility funds, including encumbrances and retroactive payments.

Community college levy reduction aid

Community college levy reduction aid is set at an estimated $6,822,827 for FY2024-25. The final amount cannot exceed the certified amount under state law. This helps reduce local levy needs and supports community colleges.

More help for early childhood and child care

The state boosts early childhood programs and provider support. Early childhood projects get $3.62 million each year. At‑risk infants and toddlers grants get $7.5 million each year, with up to 5% for evaluation and help for providers. Provider scholarships get $100,000 each year, and provider incentive bonuses get $69,000 each year. The Nurturing Healthy Behaviors program gets $400,000 each year.

More child welfare aid funding

Child Welfare Aid gets $15,000,000 in General Funds for FY2024-25. The money is for state aid only.

More money for children’s health insurance

Children’s Health Insurance (CHIP) gets $23.3 million in FY2024-25. This includes $6 million General Funds, $3 million Cash Funds, and an estimated $14.3 million in federal funds. The money is for state aid only.

Public assistance funds and food grants

Public Assistance gets $66.0 million General Funds in FY2023-24 and $61.0 million in FY2024-25. In FY2023-24, $10 million in federal TANF funds goes to 501(c)(3) nonprofits that distribute food in 10 or more counties and qualify for USDA’s Emergency Food Assistance Program.

More support for educational service units

Educational Service Units get steady core and tech funding. Core services get $10.16 million each year. ESU technology gets $3.17 million each year. Distance education gets $281,654 each year.

Caps on state employee pay

State employee pay is capped by program. Agencies must keep salary and per diem spending within the limits in this law. The budget administrator can raise a limit to pay certified leave payouts. Juvenile Services Operations has a $500,000 salary cap for FY2024–25. Money provided for LB1087 cannot be used for employee salaries or per diems. Extra federal grant pay needs the Governor’s approval.

State parks funding shifts

State parks funding changes in FY2024–25. General Fund support is $2.82 million, which is lower than before. Cash Fund support rises to $31.85 million. Park services may rely more on cash funds and fees.

Updates to public pensions funding

Funding for public employee pensions is updated. Total retirement appropriations are about $61.0 million in FY2023–24 and $65.3 million in FY2024–25. Added support goes to school employees (about $45.8 million and $47.7 million), Omaha school employees (about $9.76 million and $10.34 million), and State Patrol (about $4.09 million and $7.25 million). Judges get $1.30 million in FY2023–24 and $0 in FY2024–25. These funds help keep pension checks and promises on track.

Unspent funds lapse; contracts carry

Unspent General and Cash Fund balances on June 30, 2023 lapse unless another rule applies. Certified encumbrances on June 30, 2023 and June 30, 2024 carry into the next fiscal year. This removes unused balances but keeps money for signed contracts and orders.

Medicaid help to quit tobacco

Medicaid covers counseling and approved medicines to quit tobacco. The law sets $450,000 each year from the Nebraska Health Care Cash Fund for FY2023-24 and FY2024-25 to support this coverage.

Mental health operations funding set

Mental Health Operations get $4,500,000 in FY2024-25. The program’s salary cap is set at $6,300,000. This increases operating resources and supports staff pay.

Respite payments to family caregivers

The state provides $810,000 each year for the Nebraska Lifespan Respite Services Program. The money also pays caregivers to buy respite services. Funds come from the Nebraska Health Care Cash Fund.

Homestead exemption state aid funded

The state provides $2,000,000 in FY2024-25 for Homestead Exemption state aid. The money must be used only for homestead exemption aid.

More funding for school meals

Schools get more money for breakfast, lunch, and summer meals. Breakfast gets $617,898 each year. Lunch gets $392,032 each year. Summer food sites get $90,000 each year. This helps students eat at school and lowers family food costs.

Support for adult education and GED

Adult education programs get more aid. Adult basic education gets $214,664 each year. High school equivalency (GED) programs get $750,000 each year. This helps expand classes and support for adult learners.

Board of Parole funding set

The Board of Parole gets $150,000 in General Funds for FY2024–25. The program’s salary limit is $220,120.

Funds for Clerk of Legislature

The Clerk of the Legislature gets $55,000 in Cash Funds for FY2024–25. The money goes to Program 123.

Real estate oversight funding

The Real Estate Commission gets $67,845 in Cash Funds for FY2024–25 to enforce standards. The program’s salary limit is $58,925. This supports oversight of real estate licensees.

State insurance program funds

The state insurance program gets $100,000 in Cash Funds for FY2024–25. This supports program operations. The money is for administration, not direct payments to households.

Monthly Medicaid expansion reports

DHHS must send monthly electronic updates on Medicaid expansion to the Legislature and budget staff. Reports must cover services, community engagement, wellness rules, and rate setting. This adds oversight and transparency.

Career and technical education support

Career and technical education gets $4,809,040 each year. Money is distributed using the Perkins formula from January 1, 2023, and each district must get at least $7,500. Career education student groups also receive $150,000 each year, split evenly among them.

Education admin funding set

The State Education Department Program 25 gets $231,066 in General Funds and $100,000 in Cash Funds for FY2024–25. The program’s salary limit is $196,457.

Targeted aid for learning programs

Learning communities and advanced learner programs get support. Learning community aid is $470,000 each year. Programs for high‑ability learners get $2,342,962 each year. An extra $1,465,500 each year funds the program required by subsection (2) of section 79‑734.

ARPA funds and budget rules set

Unspent federal ARPA State Fiscal Recovery funds are reappropriated in FY2023-24 and FY2024-25 to the same agencies, with original limits kept. The law defines fiscal years: FY2023-24 (7/1/2023–6/30/2024), FY2024-25 (7/1/2024–6/30/2025), FY2025-26 (7/1/2025–6/30/2026), and FY2026-27 (7/1/2026–6/30/2027). Agencies use the Nebraska Accounting System Manual definitions unless this act says otherwise. The Director of Administrative Services may draw warrants within appropriations, and the State Treasurer must pay them when properly documented.

Old budget sections repealed

The law repeals section 90‑562 and several listed sections from 2023 and 2024 session laws. These parts are removed from the state code. The effect depends on what each repealed section did.

Sponsors & Cosponsors

Sponsor

  • Speaker Arch

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 232 • No: 7

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: 37 • No: 0 • Other: 12

legislature vote • 5/7/2025

Vote

Yes: 41 • No: 0 • Other: 8

legislature vote • Unknown

Vote

Yes: 37 • No: 0 • Other: 12

legislature vote • Unknown

Vote

Yes: 38 • No: 0 • Other: 11

Actions Timeline

  1. Approved by Governor on May 21, 2025

    5/21/2025legislature

  2. Presented to Governor on May 15, 2025

    5/19/2025legislature

  3. President/Speaker signed

    5/15/2025legislature

  4. Passed on Final Reading with Emergency Clause 41-7-1

    5/15/2025legislature

  5. Dispensing of reading at large approved

    5/15/2025legislature

  6. Placed on Final Reading

    5/12/2025legislature

  7. Advanced to Enrollment and Review for Engrossment

    5/9/2025legislature

  8. Clements AM1362 adopted

    5/9/2025legislature

  9. Clements AM1362 filed

    5/9/2025legislature

  10. Clements FA156 withdrawn

    5/9/2025legislature

  11. Enrollment and Review ER78 adopted

    5/9/2025legislature

  12. Enrollment and Review ER78 filed

    5/8/2025legislature

  13. Placed on Select File with ER78

    5/8/2025legislature

  14. Advanced to Enrollment and Review Initial

    5/7/2025legislature

  15. Appropriations AM831 adopted

    5/7/2025legislature

  16. Appropriations AM831 pending

    5/7/2025legislature

  17. Clements FA156 to AM831 filed

    4/29/2025legislature

  18. Appropriations AM831 filed

    4/29/2025legislature

  19. Placed on General File with AM831

    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

    1/15/2025

    PDF

  • Enrolled / Slip Law

    PDF

  • Final / Enacted

    PDF

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