All Roll Calls
Yes: 898 • No: 245
NebraskaLB261109th Legislature 1st and 2nd SessionslegislatureWALLET
Appropriate funds for the expenses of Nebraska State Government for the biennium ending June 30, 2027, and appropriate Federal Funds allocated to the State of Nebraska pursuant to the federal American Rescue Plan Act of 2021
Sponsored By: John Arch
Signed by Governor
Appropriations Committee
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Bill Overview
Analyzed Economic Effects
58 provisions identified: 50 benefits, 5 costs, 3 mixed.
More money for property tax relief
The state transfers $422 million to the Property Tax Credit Cash Fund by December 15, 2025. It also transfers $780 million to the School District Property Tax Relief Credit Fund between July 1, 2025 and June 30, 2026. By December 15, 2026, another $442 million goes to the Property Tax Credit Cash Fund. Between July 1, 2026 and June 30, 2027, $808 million goes to the School District Property Tax Relief Credit Fund. This puts more money behind credits that lower property tax bills for homeowners and some renters.
Builds and upgrades prisons statewide
The state builds a new multi-custody prison for about 1,512 inmates. It provides $135 million in FY2025-26 and $10 million in FY2026-27 and allows decommissioning an older facility. The new site must include spaces for reentry, programming, treatment, and telehealth. It funds $2.5 million each year to upgrade security systems and $4 million each year for roofs, HVAC, electrical, and safety fixes. It also repairs the women’s prison in York and adds vocational/education space, and funds a $2.25 million housing unit at the Hastings youth treatment center.
Upgrades Capitol building and boosts security
The State Capitol HVAC project gets $33,333,886 in FY2025-26, with a total project cost cap of $158,743,113. The Capitol Commission is authorized to continue restoration and preservation projects. The state transfers $1,429,602 in FY2025-26, reduced by any June 30, 2025 balance, to cover capitol security costs in four quarterly payments.
Big federal funds for broadband
The Nebraska Broadband Office gets $139,960,000 in federal funds in FY2025-26 and $93,640,000 in FY2026-27. The money supports expanding or improving broadband service across the state.
More funding for roads and transit
The law moves $543,900,000 to the Roads Operations Cash Fund in FY2025-26 and $550,700,000 in FY2026-27 to run Nebraska’s roads. It provides $6,312,705 each year for local transit, including $535,000 for intercity bus and $5,777,705 for public transportation. It also sets $489,979 each year to pay Nebraska State Patrol coverage in road construction zones, with transfers due on or before July 15, October 15, January 15, and April 15.
More funding for veterans' services
Veterans’ Affairs programs receive about $100,006,738 in FY2025-26 and about $102,213,486 in FY2026-27. This funding supports services and benefits for Nebraska veterans.
Water projects and safer drinking water
The state provides $62,800,000 each year from the Perkins County Canal Project Fund in FY2025-26 and FY2026-27, plus $2,500,000 from JEDI in FY2025-26, for water projects. It also counts $12,990,000 in federal funds for the Drinking Water Facilities Loan Fund in FY2025-26 and again in FY2026-27 to support local drinking water upgrades.
Big boost to education future fund
The state transfers $242 million to the Education Future Fund between July 1, 2025 and June 30, 2026. It transfers another $242 million between July 1, 2026 and June 30, 2027. The budget administrator schedules the transfers. This gives Nebraska more money for future education needs.
More K-12 funding and reading help
Public schools get $1,036,453,304 in FY2025-26 and $1,024,467,449 in FY2026-27 under TEEOSA. Nonprofit reading mentorship programs get $4,880,762 each year to help elementary students read better. The State Department of Education also receives $5,000,000 each year for state aid and program operations that must be used only for that purpose.
New budget rules: flexibility and caps
Beginning July 1, 2025, any appropriations for fiscal years after June 30, 2025 are void unless the One Hundred Ninth Legislature reaffirms them. Federal fund receipts and June 30, 2025 balances are credited to each Federal Fund, and agencies may spend additional federal funds beyond amounts shown. Cash Fund spending is capped at the program amounts listed in this act.
More support for disabilities and brain injury
DHHS can move unspent Medicaid funds to Developmental Disability Aid in FY2025-26 and FY2026-27 to keep people in Medicaid programs that fit their needs at costs not above institutional care. Money from the Beatrice State Developmental Center can also be shifted to community services, and up to $8,000,000 of its General Fund balance on June 30, 2025 is reappropriated. A 501(c)(3) serving people with intellectual and developmental disabilities gets $300,000 each year for screenings, sports, education, and leadership training. The Brain Injury Assistance Act gets $500,000 each year to support people with brain injuries.
Ongoing aid for soil and water conservation
The state provides $7.45 million in cash funds each year, plus any reappropriated amounts, for FY2025–26 and FY2026–27. It also estimates $5,000 in federal funds each year. Reappropriated funds stay with the same budget subprogram. This supports soil and water conservation work that helps farms and rural landowners.
Keeps unspent funds in use
The law keeps many unspent balances available instead of letting them expire. It reuses undisbursed capital construction funds on June 30, 2025 and June 30, 2026, starting July 1, 2025. It lets agencies use unspent FY2025-26 balances in FY2026-27 and keeps ARPA recovery funds with their original limits. It also pays certified encumbrances at each year-end, and appropriates any accepted cash gifts to the named agency. It carries forward unspent money for State Insurance and the Employee Relations Division.
More funding for parks, trails, and habitat
Game and Parks is funded to develop and improve boating sites, fishing access, parks, the Cowboy Trail, hatcheries, emergency repairs, and aquatic habitat. It includes $25.75 million a year for Environmental Trust state aid and $1.725 million a year for Habitat Development. Some unspent balances are kept as listed.
State aid for public airports
Public airports receive about $59,348,300 in FY2025-26 and about $51,348,300 in FY2026-27. These funds support airport operations and state airport aid.
Core health aid and data sharing
The law funds statewide health aid and the health information exchange. Each year, DHHS Program 514 (Health Aid) receives $7,352,196 General Funds, $20,325,817 Cash Funds, and about $84,079,725 Federal Funds for state aid. Each year, the Health Information Exchange program receives $4,774,860 General Funds and about $9,957,274 Federal Funds. These dollars support core health services and secure data sharing across providers.
More reentry and job training help
The law funds Vocational and Life Skills grants. It provides $4 million General Funds and $8.3 million Cash in FY2025-26, and $4 million General Funds and $4.8 million Cash in FY2026-27. Each year, $500,000 General Funds and $500,000 Cash go to paid prep training that leads into a registered apprenticeship, with at least a 1:1 match. It also directs $7.8 million Cash in FY2025-26 and $4.3 million Cash in FY2026-27 for reentry and restorative justice grants, paid monthly in advance. Any unspent Cash Fund on June 30, 2025 is kept and used as state aid for this program.
Money for ports, arenas, and conventions
The Inland Port Authority gets $25 million each in FY2025-26 and FY2026-27, and any unspent FY2024-25 Cash balance is kept. The Sports Arena Facility program receives $4.5 million each year as state aid, with Cash Fund spending not limited to that amount. The Convention Center Facility program receives $7.1 million each year as state aid.
Business incentives and local development aid
The Nebraska Transformational Project Fund provides $50,000,000 in FY2025-26 and $50,000,000 in FY2026-27 for state aid to transformational projects. The ImagiNE Nebraska Revolving Loan Fund adds $4,000,000 in FY2025-26 for state aid. Unspent federal ARP economic recovery funds as of June 30, 2025 remain available for authorized recovery uses. Development districts get $700,000 each year to support local economic work.
Cap on state worker pay and per diems
The law caps total pay and per diem spending to the amounts in this act. Extra federal funds can be used if the Governor approves. Certain awards and certified encumbrances are outside the cap. The budget administrator may raise limits to pay certified unused vacation and sick leave. The cap applies to state employee pay and board member per diems.
Extra payments to public pensions
The state adds funds to public retirement systems. FY2025-26: School Employees $17.54 million; Omaha Schools $10.61 million; State Patrol $6.83 million; Judges $1.46 million. FY2026-27: Omaha Schools $10.60 million; State Patrol $6.00 million; Judges $1.512 million. These payments support pension funding for members and retirees.
More help for court mediation and interpreters
The courts get $500,000 each year to pay for parenting plan mediation for indigent and lower‑income people in Parenting Act cases. The law also adds $550,000 each year to raise interpreter payments in courts, plus $50,000 each year for probation interpreters. It helps people who are deaf or hard of hearing or who cannot communicate in English.
Mental health support for first responders
The law provides $1,125,000 in FY2025-26 and $1,125,000 in FY2026-27 to connect first responders to behavioral health services and training. It funds a statewide wellness learning plan with anonymous assessments, education, and resiliency support.
More aid for seniors' care
Medicaid assisted‑living rates rise to $73.91 per day for single‑occupancy waiver days in FY2025-26. The law also funds community‑based aging services with $9,407,019 in General Funds and about $9,469,241 in Federal Funds each year in FY2025-26 and FY2026-27. These funds support services that help older Nebraskans live safely in their communities.
More funding for cervical and STD care
The law provides $653,759 in General Funds each year to reimburse providers for cervical cancer screening and treatment and for STD diagnosis and treatment. Covered services include tests like pap smears and colposcopy, follow-up care, and related lab, equipment, and staff training costs. This helps clinics deliver essential screenings and care.
More help for kids and families
The law funds child advocacy centers with $7,500,000 in TANF each year in FY2025-26 and FY2026-27. It adds $500,000 each year for center coordination and $500,000 each year for CASA aid. It also gives $1,100,000 each year for early‑childhood home visitation programs. These funds expand services that help children and families across Nebraska.
More help to quit tobacco
Medicaid gets $450,000 in each year to cover tobacco-use counseling and FDA‑approved quit medicines under the state plan. DHHS also gets $2,570,000 in state health cash funds and about $9,000 in federal funds each year for Tobacco Prevention and Control. These funds expand quit support and prevention programs.
More respite, care, and safety for families
The law funds family supports in both years. It provides $404,643 per year for Nebraska Lifespan Respite Services across DHHS service areas. It provides $2,315,560 per year in state aid for the Care Management program to help coordinate care. It also adds $3,000,000 per year for domestic violence services inside Child Welfare Aid, using the Medicaid Managed Care Excess Profit Fund. These dollars expand respite, care coordination, and safety services for families.
Lower tuition for dual-credit courses
The state provides $8,062,234 each year in FY2025-26 and FY2026-27 for dual‑enrollment. Money is split among community college areas by their recent three‑year average dual‑credit FTE. Funds must be used to discount tuition for dual‑credit students.
More loan relief for public-service lawyers
The state transfers $150,000 to the Legal Education for Public Service and Rural Practice Loan Repayment Assistance Fund on or before July 15, 2025. It transfers another $150,000 on or before July 15, 2026. The budget administrator sets the timing. The money helps eligible lawyers in public service or rural practice pay down student loans.
Adds money to the Tort Claims Fund
Small transfers go to the Tort Claims Fund each year. The amounts are $797, $4,487, $22,691, $30,934, and $660 from named agencies. Payments are due by August 1 or in four equal parts on Aug 1, Oct 1, Jan 1, and Apr 1 at the Risk Manager’s choice.
Funds for local mutual finance aid
The Mutual Finance Assistance program gets $8.06 million in Cash Funds in FY2025-26 and $8.06 million in FY2026-27. The money is state aid and can only be used for that program.
Funds trucking, fuel tax and DMV work
DOT is directed to seek as much federal highway money as possible. DOT may design and build facility improvements. The state transfers $13,075,900 in FY2025-26 to the Carrier Enforcement Fund, reduced by any June 30, 2025 balance, in four quarterly payments. It also moves $1.4 million to the Motor Fuel Tax Enforcement Fund in 12 monthly payments, up to $1.4 million to the Motor Carrier Division as needed, and $3,554,058 to the License Plate Cash Fund for plate and sticker production.
Grants for arts, research, and development
The Nebraska Arts Council gets $943,863 each year for competitive arts grants. On July 1, 2025, $500,000 is transferred to the University of Nebraska Eppley Institute for cancer research. The law also provides a $1,000,000 General Fund grant in FY2025-26 for a program authorized in section 81-1213.04.
More funding for State Patrol and security
The law boosts State Patrol operations and capitol security. For FY2026-27, $1,482,214 is transferred in four equal quarterly amounts to run the capitol security division. For FY2025-26 and FY2026-27, $115,000 per year moves from the General Fund to the Patrol’s cash fund for drug buys and investigations, reduced by any unspent investigation balances each June 30. It also transfers $200,000 to the State Patrol Cash Fund by June 30, 2026, and another $200,000 by June 30, 2027, from settlement dollars. These funds support investigations and public safety at the Capitol.
More funds for courts and Byrne grants
The Supreme Court receives $270,000 General Funds and $270,000 Cash each year for state aid. Up to $841,616 per year is paid as a monthly retainer for county court automation, excluding pass‑through equipment and software costs. Unspent general, cash, and federal balances for Byrne grant programs that exist on both June 30, 2025 and June 30, 2026 are kept and reappropriated.
More support for public defense services
The law funds statewide public defense operations in both years. It transfers $875,000 from the General Fund to the Commission on Public Advocacy Operations Cash Fund by December 31, 2025. It transfers another $875,000 by December 31, 2026. This supports legal representation and related services for eligible Nebraskans.
Petroleum cleanup and tank safety funding
The law funds environmental cleanup tied to petroleum releases in both years. By June 30, 2026, the state can move up to $1.5 million to the Superfund Cost Share Cash Fund and $50,000 to the Underground Storage Tank Fund. By June 30, 2027, it can again move up to $1.5 million for Superfund cost shares and $50,000 for tank work. These transfers support cleanup projects and oversight that protect communities.
Keep wastewater grants separate from loan funds
Grant money for small communities in the Wastewater Loan Fund cannot be mixed with loan funds. Grant and loan dollars must stay separate.
Minority health office, research, and poison help
The law funds health policy, research, and poison control. Each year, $220,000 supports a minority health satellite office in Nebraska’s 2nd and 3rd congressional districts. Each year, $75,000 from the Nebraska Health Care Cash Fund supports the Legislature’s Health and Human Services Committee for research and policy work. Each year, $200,000 supports the Poison Control Center at the University of Nebraska Medical Center. These dollars improve coordination, policy, and emergency poison help.
More funding for cancer and research
The law invests in cancer, stem cell, and biomedical research. Beginning July 1, 2026, $500,000 goes to the University of Nebraska’s Eppley Institute. Each year, $450,000 funds stem cell research (about $436,500 for state aid). Each year, about $3,799,452 funds cancer research (about $3,291,113 for state aid). Each year, $15,000,000 funds biomedical research, with at least $700,000 for minority health research, $11,000,000 to the University of Nebraska, and $4,000,000 for contracts with other Nebraska medical institutions. Recipients must report yearly on how funds are used.
More regional mental health and opioid help
The law funds regional behavioral health services. Each year, $6,500,000 supports community mental health and substance use services across six regions. Each year, $3,000,000 from the Opioid Prevention and Treatment Cash Fund goes to regional authorities for opioid prevention and harm reduction. For FY2025-26, a nonprofit can receive up to $500,000 to build a youth behavioral health and early childhood facility if it is in a qualified census district in a metro city and shows a 2:1 private match. The nonprofit must offer youth behavioral health, caregiver support, early childhood education, and an outdoor nature classroom.
Study prefab homes and keep housing funds
The state provides $250,000 in FY2025–26 to study prefabricated housing. It also keeps unspent cash balances for several housing programs available for existing obligations as of June 30, 2025. This supports ongoing housing projects and planning, not direct subsidies.
University building funds and housing study
The University of Nebraska Facilities Program gets $13,500,000 in General Funds and about $18,000,000 in Cash Funds each year in FY2025-26 and FY2026-27 for listed projects. The state also pays $250,000 in FY2025-26 for a study on housing for nursing and allied health students in Norfolk. The note about $750,000 per year starting FY2027-28 is only legislative intent, not current funding.
Workers' comp funds and payment schedule
The state sets $22,952,296 each year in FY2025-26 and FY2026-27 to pay workers’ compensation claims. Agencies must pay their workers’ comp premiums by August 1, 2025 (and by August 1, 2026 for the next year), or in four equal payments on Aug 1, Oct 1, Jan 1, and Apr 1 if allowed. Up to $25,000 each year can fund contracted rehabilitation services for injured workers.
Funds state tax enforcement work
On July 1, 2025, the state transfers $43,900 to the Department of Revenue Enforcement Fund. This money supports tax enforcement work under the cited laws.
Highway funds for enforcement and plates
The law directs highway-related funds to key operations in FY2026-27. Starting July 15, 2026, $13,325,900 moves to the Carrier Enforcement Cash Fund in four equal quarterly payments. Starting July 1, 2026, up to $1,400,000 (reduced by any unused balance) moves monthly to the Motor Fuel Tax Enforcement and Collection Cash Fund, and up to $1,400,000 goes to the Motor Carrier Division Cash Fund as needed. Up to $2,592,174 also moves to the License Plate Cash Fund to cover plate and sticker production. These transfers support enforcement, carrier services, and plate production.
Settlement dollars moved to General Fund
The law moves settlement money into the state’s main operating fund in both years. By June 30, 2026, $295,957 transfers from the State Settlement Cash Fund to the General Fund. By June 30, 2027, another $295,957 transfers the same way. This supports overall state operations.
Small transfers for energy and city loans
The law moves small sums from the Severance Tax Fund to two programs in both budget years. For FY2025-26, it sends $10,000 on July 1, 2025 to the Municipal Rate Negotiations Revolving Loan Fund and $300,000 to the State Energy Cash Fund in 12 equal monthly payments of $25,000. For FY2026-27, it repeats a $10,000 transfer on July 1, 2026 to the municipal loan fund and $300,000 to the State Energy Cash Fund in 12 equal monthly payments. These dollars help local rate negotiations and state energy work.
Funding to run state employee benefits
For FY2025–26, the state transfers $140,000 from the Flexible Spending Trust Fund to the Health and Life Benefit Administration Cash Fund. If FSA forfeitures are under $140,000 on June 30, 2025, the State Employees Insurance Fund covers the shortfall, up to $140,000. The state also transfers $1,097,174 from the State Employees Insurance Fund, reduced by any unobligated balance on June 30, 2025. For FY2026–27, it transfers another $140,000 from the Flexible Spending Trust Fund, with a similar shortfall backstop as of June 30, 2026, and $1,121,274 from the State Employees Insurance Fund. These transfers pay to run state employee health and life benefit administration.
More funding for sector job partnerships
The state transfers $300,000 to the Sector Partnership Program Fund on or before July 15, 2025. It transfers another $300,000 on or before July 15, 2026. The budget administrator sets the dates. The money supports workforce partnerships that help employers and workers with training.
Planned site development funding in 2027-28
The Legislature states its intent to provide $4.5 million from the Site and Building Development Fund in FY2027–28. This is an intent, not a current appropriation. If funded later, the money would support site and building development projects.
Arts Council must match state aid
The state only allots Nebraska Arts Council aid if the Council shows a dollar‑for‑dollar match from nonstate sources. Without the match, the allotment can be withheld.
Pay caps at the Transportation Department
DOT salary and per diem spending is capped at $155,441,627 in FY2025-26 and $161,284,354 in FY2026-27. These limits restrict what the department can spend on permanent and temporary salaries and per diems and can affect hiring and overtime.
No Program 514 funds for abortions
General Funds in Program 514 (Health Aid) cannot pay for abortions. They also cannot be used to counsel or refer for abortion.
Limit on community college levy relief spending
Cash Fund spending for the Community College Levy Reduction program cannot exceed the amount certified under state law. This can limit how much the program lowers property taxes.
Building upkeep funds with new limits
The law funds state building renewal projects in FY2025-26 and FY2026-27 and allows up to $200,000 each year for training, roof scans, testing, and consulting. Projects must include matching money from federal, private, or agency funds as set by the Task Force for Building Renewal. It bans using these funds for ADA operating costs. For the Capitol Commission, most unspent General Funds on June 30, 2025 are reappropriated but must be used for unexpected utility cost increases.
Stronger planning rules for state projects
Agencies with planning money must file a full program or needs statement by September 15 before drawings or construction move ahead. Older statements must be updated between July 1 and September 1 in 2025 and 2026. Inside the Legislature, funds and salary limits can be moved among program classifications only when the Executive Board directs it.
Sponsors & Cosponsors
Sponsor
John Arch
legislature
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
legislature vote • 4/24/2026
Vote
Yes: 35 • No: 6 • Other: 8
legislature vote • 4/24/2026
Vote
Yes: 38 • No: 5 • Other: 6
legislature vote • 4/24/2026
Vote
Yes: 29 • No: 7 • Other: 13
legislature vote • 4/24/2026
Vote
Yes: 4 • No: 32 • Other: 13
legislature vote • 4/24/2026
Vote
Yes: 35 • No: 5 • Other: 9
legislature vote • 4/24/2026
Vote
Yes: 37 • No: 2 • Other: 10
legislature vote • 4/24/2026
Vote
Yes: 40 • No: 2 • Other: 7
legislature vote • 4/24/2026
Vote
Yes: 26 • No: 17 • Other: 6
legislature vote • 4/24/2026
Vote
Yes: 35 • No: 1 • Other: 13
legislature vote • 4/24/2026
Vote
Yes: 42 • No: 0 • Other: 7
legislature vote • 4/24/2026
Vote
Yes: 17 • No: 26 • Other: 6
legislature vote • 4/24/2026
Vote
Yes: 30 • No: 11 • Other: 8
legislature vote • 4/24/2026
Vote
Yes: 42 • No: 0 • Other: 7
legislature vote • 5/15/2025
Final Reading
Yes: 37 • No: 11 • Other: 1
legislature vote • 5/12/2025
Vote
Yes: 26 • No: 17 • Other: 6
legislature vote • 5/12/2025
Vote
Yes: 30 • No: 11 • Other: 8
legislature vote • 5/12/2025
Vote
Yes: 39 • No: 6 • Other: 4
legislature vote • 5/12/2025
Vote
Yes: 37 • No: 2 • Other: 10
legislature vote • 5/12/2025
Vote
Yes: 40 • No: 2 • Other: 7
legislature vote • 5/12/2025
Vote
Yes: 35 • No: 5 • Other: 9
legislature vote • 5/12/2025
Vote
Yes: 42 • No: 0 • Other: 7
legislature vote • 5/12/2025
Vote
Yes: 42 • No: 0 • Other: 7
legislature vote • 5/12/2025
Vote
Yes: 17 • No: 26 • Other: 6
legislature vote • 5/12/2025
Vote
Yes: 35 • No: 1 • Other: 13
legislature vote • 5/6/2025
Vote
Yes: 29 • No: 7 • Other: 13
legislature vote • 5/6/2025
Vote
Yes: 4 • No: 32 • Other: 13
legislature vote • 5/6/2025
Vote
Yes: 37 • No: 6 • Other: 6
legislature vote • 5/6/2025
Vote
Yes: 38 • No: 5 • Other: 6
Actions Timeline
Provisions/portions of LB55 amended into LB261 by AM832
6/6/2025legislatureProvisions/portions of LB57 amended into LB261 by AM832
6/6/2025legislatureProvisions/portions of LB173 amended into LB261 by AM832
6/6/2025legislatureProvisions/portions of LB284 amended into LB261 by AM1264
6/6/2025legislatureProvisions/portions of LB348 amended into LB261 by AM1386
6/6/2025legislatureProvisions/portions of LB452 amended into LB261 by AM832
6/6/2025legislatureProvisions/portions of LB505 amended into LB261 by AM832
6/6/2025legislatureProvisions/portions of LB580 amended into LB261 by AM832
6/6/2025legislatureProvisions/portions of LB581 amended into LB261 by AM832
6/6/2025legislatureProvisions/portions of LB621 amended into LB261 by AM832
6/6/2025legislatureProvisions/portions of LB627 amended into LB261 by AM832
6/6/2025legislatureApproved by Governor on May 21, 2025
5/27/2025legislatureCommunication
5/22/2025legislaturePresented to Governor on May 15, 2025
5/19/2025legislatureMotion to return to Select File withdrawn
5/15/2025legislatureCavanaugh, M. AM1461 not considered
5/15/2025legislatureDeBoer AM1377 withdrawn
5/15/2025legislatureMotion to return to Select File withdrawn
5/15/2025legislatureSpivey AM1366 not considered
5/15/2025legislatureMotion to return to Select File withdrawn
5/15/2025legislatureSpivey AM1423 not considered
5/15/2025legislatureDispensing of reading at large approved
5/15/2025legislaturePassed on Final Reading with Emergency Clause 37-11-1
5/15/2025legislaturePresident/Speaker signed
5/15/2025legislatureCavanaugh, M. AM1461 filed
5/14/2025legislature
Bill Text
Introduced
6/6/2025
Enrolled / Slip Law
Final / Enacted