All Roll Calls
Yes: 895 • No: 317
NebraskaLB264109th Legislature 1st and 2nd SessionslegislatureWALLET
Provide, change, and eliminate transfers from the Cash Reserve Fund and various other funds and change, terminate, and eliminate various statutory programs
Sponsored By: John Arch
Signed by Governor
Appropriations Committee
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Bill Overview
Analyzed Economic Effects
36 provisions identified: 13 benefits, 1 costs, 22 mixed.
Big reserve push for projects 2023-24
The state moves over $1 billion from the Cash Reserve into major projects in FY2023-24. It sends $574.5 million to the Perkins County Canal Project, $166.7 million to capital construction, $200 million to the Economic Recovery Contingency Fund, $70 million to shovel‑ready projects, $20 million to economic development, and $10 million to critical infrastructure. Transfers occur between July 1, 2023 and June 30, 2024 as directed by the budget administrator.
Large transfers into state cash reserves
The State Treasurer transfers $440 million from the General Fund into the Cash Reserve Fund between July 1, 2023 and June 30, 2024. Another $28 million moves from the Jobs and Economic Development Initiative Fund to the Cash Reserve Fund by June 30, 2024.
Matching fund and reports for mega projects
The Nebraska Transformational Project Fund can receive up to $300 million, but not before fiscal year 2025–26 and only after $1.3 billion in federal and private commitments and federal selection. An approved applicant can receive 15% of that year’s investment, up to $50 million per year and $300 million total. Each year by October 1, the director must report payments and expected payments. The director must also present the report at a December 15 hearing each year. Donor names are not included in the report.
New rules for mega projects funding
A project must invest at least $1.6 billion at one site, with at least $1.0 billion in federal funds during the project period. Private dollars cannot include any government money. Awards generally cannot fund athletic or recreation spaces. Applicants pay a nonrefundable $25,000 fee and must show at least $2.7 billion impact during buildout and $4.6 billion over 10 years. No new applications are accepted after December 31, 2025. If required investments or donations are missed, all matching funds must be repaid with interest. Lawmakers state an intent to transfer up to $200 million in later years to support matches.
Funds for prisons and patrol vehicles
The state creates a Prison Overcrowding Contingency Fund and transfers $15 million from the General Fund by July 15, 2025. The fund can pay for an inmate classification study, and lawmakers can move money to other listed funds. A separate cash fund pays for Nebraska State Patrol vehicle purchases.
More money for school safety and health
The law adds funds for safety and health in FY2023-24. It moves $10 million to the School Safety and Security Fund as soon as possible after September 2, 2023. It also transfers $3 million to the Risk Loss Trust, $11.32 million to the Health and Human Services Cash Fund, and $1.115 million to the Public Safety Cash Fund by June 30, 2024.
Set split of education dollars, new funds
From fiscal year 2024–25 through 2028–29, the law splits certain education dollars by fixed percentages. For example, 58% goes to the Nebraska Opportunity Grant, 10% to Education Improvement Grants, and 7% to Community College Gap Assistance. The state also creates funds for expanded learning grants and tuition recovery for students. The Legislature may move money from these funds to the Education Future Fund or, for the department cash fund, to the General Fund.
Grants for internships and job training
The state funds Intern Nebraska, with up to 5% allowed for program administration. The Customized Job Training Fund pays for job training reimbursement grants and program costs. A community college in a metropolitan area can get a grant to partner with a public university to offer microcredentials for microchip and microelectronics jobs.
Loans for ImagiNE Nebraska businesses
The state runs a revolving loan fund for ImagiNE Act applicants. Loans can finance workforce training or infrastructure. Businesses may repay loans with ImagiNE tax credits; the state then moves matching money from the General Fund to the loan fund within 30 days. If a borrower fails to meet required minimums, unpaid principal and interest count as a tax underpayment.
Broadband and 211/911 funding changes
Federal Coronavirus Capital Projects Fund dollars are split across districts: up to $35 million for a metro district, at least $40 million for a primary‑class city district, and at least $40 million for other districts. Up to $5 million can cover administration. The state waives the usual state match for broadband projects using these federal funds. The Public Service Commission gives an annual grant to a qualifying 211 network. Interest from the 911 fund is credited to the General Fund for 2017–2019 and again starting July 1, 2025.
Public safety radio fund spending rules
The Public Safety Communication System Cash Fund may pay only direct costs to run and maintain the statewide radio system. Unused money first reduces the patrol’s General Fund needs and can also lower costs for the State Fire Marshal and Game and Parks Commission. The Legislature may move money from this fund to the General Fund.
80% pay and new special-ed rules
The law sets how “excess cost” is figured. It subtracts Medicaid funds and an adjusted per‑pupil amount. The state reimburses 80% of allowable excess costs. If the General Fund is short, the Education Future Fund pays the rest. Schools get at least seven payments each year, between the 5th and 20th, starting in December. The required amount equals 80% of total allowable excess costs minus 80% of a three‑year average of nonreimbursable spending.
Economic recovery interest and project transfers
From July 1, 2024 to June 30, 2026, the first $13 million of interest from specified funds, the first $12 million from the Perkins County Canal Project Fund, and the first $5 million from the Nebraska Capital Construction Fund go to the Economic Recovery Contingency Fund. The next $7 million of interest goes to the Museum Construction and Maintenance Fund. Remaining interest then goes to the Inland Port Authority Fund. The state transfers $30 million to the Inland Port Authority Fund (within five business days after April 17, 2024), $750,000 to the museum fund in 2024, $15 million in 2025, and $7 million in early 2026. Any unobligated money on July 31, 2026 goes to the Inland Port Authority Fund. Starting July 1, 2025, contingency fund earnings go to the General Fund.
Future budget shifts for reserves and projects
The law rebalances funds over several years. It moves $29.46 million from the Cash Reserve to capital construction in FY2024-25 and $45.897 million more by June 30, 2026. It adds $25 million to the Governor’s Emergency Cash Fund by June 30, 2025 and $10 million more in FY2025-26. It also returns $15.841 million from the Governor’s Emergency Cash Fund to the Cash Reserve by June 30, 2024. In FY2026-27, it transfers $147 million from the Cash Reserve to the General Fund.
Parks and tourism dollars reshuffled
The law moves money into state parks and out of some tourism and recreation funds. It transfers $2.5 million to the State Park Cash Revolving Fund before June 30, 2025 and another $2.5 million in FY2025-26 from the State Recreation Road Fund. It adds $5 million to the parks fund from the Economic Recovery Contingency Fund in FY2025-26. It also sends $32.7 million from the Water Recreation Enhancement Fund and $2 million from the State Visitors Promotion Cash Fund to the General Fund in FY2025-26.
Economic development funds rebalanced 2025-26
The law shifts several business development funds in FY2025-26. It transfers $25.5 million from the Military Installation Development and Support Fund to the Site and Building Development Fund. It moves any remaining balances of the Economic Development Cash Fund, the Intern Nebraska Cash Fund, and the Customized Job Training Cash Fund to the General Fund during that year. It also sends $4.5 million from the Site and Building Development Fund and $4.4 million from the JEDI Fund to the General Fund.
Property tax incentives tied to $500M reserve
The state cannot use the Cash Reserve Fund for Property Tax Incentive Act payments if the balance would fall below $500 million. This protects a minimum rainy‑day balance but can limit transfers to support property tax credits.
Lead hazard grants for homeowners
A state grant helps a metropolitan city remove lead hazards in owner‑occupied homes. The grant only runs if HUD says it will award a matching federal lead‑hazard grant. No more than 15% of the grant may go to administration.
New youth outdoor education fund
The Youth Outdoor Education Innovation Fund supports outdoor education for kids. It can receive legislative transfers and private gifts. The Department of Economic Development runs the fund, and investment earnings stay with it. Lawmakers can move money from this fund to the General Fund.
Tuition help for state worker dependents
Dependents of Nebraska state employees can get tuition reimbursements at one of the six community colleges. The Department of Administrative Services runs the program. The Legislature can move money into or out of this fund.
Support Nebraska History cash fund
The Support Nebraska History Cash Fund uses specialty plate receipts and gifts. It pays to promote Nebraska history online and support history education for children, plus administration. Lawmakers can move money from this fund to the General Fund.
Phone fund boosts 211 helpline
The law sends phone‑service fund earnings to the 211 helpline. It transfers $1.275 million on July 1, 2023, and $1.455 million on July 1, 2024, from Nebraska Telecommunications Universal Service Fund earnings to the 211 Cash Fund.
Faster pay for residential special education
Residential providers must be reimbursed for special education services within 60 days after a proper request. If funds are out, payment happens within 30 days after the next fiscal year starts. The department can audit claims and deduct any errors from future payments.
New fund for engineering plan reviews
The state creates a fund to pay the Department of Environment and Energy’s costs to review engineering plans. The Legislature can move money between this fund and the General Fund. On July 1, 2021, specified cash moved from a prior fund into this new one.
Sweeps to General Fund across agencies
The state moves money from many special funds into the General Fund. By June 30, 2025, it transfers $8.25 million from the State Insurance Fund, $1 million from the Flexible Spending Fund — Medical, and $125,000 from the Resource Recovery Fund. In FY2025-26, it transfers $800,000 more from the Flexible Spending Fund — Medical, $15 million from the Economic Recovery Contingency Fund, $5.5 million from the Vehicle Title and Registration System fund, $4 million from the Motor Carrier Services System fund, $3 million from the Financial Institution Assessment fund, and $2 million from the Department of Revenue Enforcement fund.
Easier teacher endorsements and fee caps
Teachers can apply online to add endorsements. You can earn an endorsement by passing a subject exam or by finishing an approved program. The fee for a certificate or permit can be up to $65. An extra endorsement fee can be up to $55. Money left in the old fund moves into the new Certification Fund on July 19, 2024.
Career school fees capped each year
The board must consult its advisory council before raising fees. Each year, fees can cover program costs but cannot exceed 110% of last year’s total cost. Fees must be set in rules. The Legislature may also move money from the program’s cash fund to the Education Future Fund.
Historic site funds: focused uses
Money moved from the Capitol preservation endowment to the Capitol Restoration Cash Fund can be used only on the State Capitol courtyards. The Ferguson House Fund may pay only for the Ferguson House and its grounds. The Nebraska Environmental Trust Board now runs the Ferguson House Fund.
Old statutes repealed and cleaned up
The act repeals several named statutory sections. The real‑world effect depends on what those sections used to do.
One-time boost for youth outdoor programs
The Youth Outdoor Education Innovation Fund receives a one‑time $10 million transfer in FY2023-24 from the Cash Reserve. Then, between July 1 and July 30, 2025, the state sweeps any remaining balance in that fund back to the General Fund.
Interest earnings shifted to General Fund
Starting October 1, 2024, investment earnings from several program funds are credited to the General Fund. This includes earnings from the Nebraska Telecommunications Universal Service Fund (through June 30, 2027), the Community College Gap Assistance Program Fund, the Shovel‑Ready Capital Recovery and Investment Fund, the Nebraska Litter Reduction and Recycling Fund, and the Nebraska Environmental Trust Fund. This shift boosts the General Fund and may leave less interest income in those program funds.
One-time moves from state rainy-day fund
The State Treasurer makes one‑time transfers from the Cash Reserve Fund to targeted programs. These include $5.0 million (FY2023‑24) and $2.425 million (FY2024‑25) to the Public Safety Communication System Revolving Fund; $2.0 million (FY2023‑24) to the Site and Building Development Fund; and $4.0 million (FY2024‑25) to the General Fund. Other one‑time moves include $2.5 million to the Materiel Division Revolving Fund, $3.25 million and $5.0 million to the State Insurance Fund, $3.5 million to the Health and Human Services Cash Fund, $5.0 million to the Municipality Infrastructure Aid Fund, and $100,000 to the Self‑Insured Liability Fund. Transfers occur on the dates set in law and by the budget administrator.
Safer telecom gear rules for subsidies
Telecom companies using equipment on the FCC’s Covered List cannot receive Nebraska universal‑service support. Companies that replace that equipment under federal rules do not need extra state permits if they notify the state and use similar gear.
Program cash funds: uses and transfers
Fees from the Appraisal Management Company law go into its cash fund to run and enforce the program. The Legislature may transfer money from that fund to the General Fund. The State Historical Society now administers the Job Creation and Mainstreet Revitalization Fund, which must be used to run and enforce the program. The Legislature may also transfer money from that fund to the General Fund.
Rules for marijuana tax admin fund
Money in the Marijuana and Controlled Substances Tax Administration Cash Fund pays for tax administration and enforcement. The Legislature can move money from this fund to the General Fund or the Property Assessment Division cash fund.
Tobacco and vaping revenue moved
All revenue tied to electronic nicotine delivery systems now goes to the General Fund, not the Tobacco Products Administration Cash Fund. The Treasurer must also transfer: $9.5 million in FY2025‑26, $9.5 million in FY2026‑27, $9.0 million in FY2027‑28, and $9.0 million in FY2028‑29 from the Tobacco Products Administration Cash Fund to the General Fund.
Sponsors & Cosponsors
Sponsor
John Arch
legislature
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
legislature vote • 4/24/2026
Vote
Yes: 29 • No: 1 • Other: 19
legislature vote • 4/24/2026
Vote
Yes: 15 • No: 32 • Other: 2
legislature vote • 4/24/2026
Vote
Yes: 35 • No: 8 • Other: 6
legislature vote • 4/24/2026
Vote
Yes: 40 • No: 3 • Other: 6
legislature vote • 4/24/2026
Vote
Yes: 32 • No: 2 • Other: 15
legislature vote • 4/24/2026
Vote
Yes: 34 • No: 0 • Other: 15
legislature vote • 4/24/2026
Vote
Yes: 27 • No: 12 • Other: 10
legislature vote • 4/24/2026
Vote
Yes: 36 • No: 0 • Other: 13
legislature vote • 4/24/2026
Vote
Yes: 26 • No: 5 • Other: 18
legislature vote • 4/24/2026
Vote
Yes: 36 • No: 0 • Other: 13
legislature vote • 4/24/2026
Vote
Yes: 13 • No: 22 • Other: 14
legislature vote • 4/24/2026
Vote
Yes: 34 • No: 6 • Other: 9
legislature vote • 4/24/2026
Vote
Yes: 34 • No: 7 • Other: 8
legislature vote • 4/24/2026
Vote
Yes: 17 • No: 27 • Other: 5
legislature vote • 4/24/2026
Vote
Yes: 5 • No: 24 • Other: 20
legislature vote • 5/15/2025
Final Reading
Yes: 35 • No: 13 • Other: 1
legislature vote • 5/12/2025
Vote
Yes: 35 • No: 8 • Other: 6
legislature vote • 5/12/2025
Vote
Yes: 15 • No: 32 • Other: 2
legislature vote • 5/12/2025
Vote
Yes: 40 • No: 3 • Other: 6
legislature vote • 5/12/2025
Vote
Yes: 13 • No: 22 • Other: 14
legislature vote • 5/12/2025
Vote
Yes: 36 • No: 0 • Other: 13
legislature vote • 5/12/2025
Vote
Yes: 29 • No: 1 • Other: 19
legislature vote • 5/12/2025
Vote
Yes: 26 • No: 5 • Other: 18
legislature vote • 5/12/2025
Vote
Yes: 36 • No: 0 • Other: 13
legislature vote • 5/12/2025
Vote
Yes: 27 • No: 12 • Other: 10
legislature vote • 5/7/2025
Vote
Yes: 17 • No: 27 • Other: 5
legislature vote • 5/7/2025
Vote
Yes: 34 • No: 6 • Other: 9
legislature vote • 5/7/2025
Vote
Yes: 34 • No: 7 • Other: 8
legislature vote • 5/7/2025
Vote
Yes: 32 • No: 2 • Other: 15
legislature vote • 5/7/2025
Vote
Yes: 34 • No: 6 • Other: 9
legislature vote • 5/7/2025
Vote
Yes: 34 • No: 0 • Other: 15
legislature vote • 5/6/2025
Vote
Yes: 5 • No: 24 • Other: 20
Actions Timeline
Provisions/portions of LB348 amended into LB264 by AM1389
6/6/2025legislatureProvisions/portions of LB451 amended into LB264 by AM835
6/6/2025legislatureApproved by Governor on May 21, 2025
5/27/2025legislatureCommunication
5/22/2025legislaturePresented to Governor on May 15, 2025
5/19/2025legislatureCavanaugh, M. AM1468 filed
5/15/2025legislatureMotion to return to Select File withdrawn
5/15/2025legislatureCavanaugh, M. AM1468 not considered
5/15/2025legislatureCavanaugh, J. FA213 withdrawn
5/15/2025legislatureDeBoer AM1390 withdrawn
5/15/2025legislatureHoldcroft FA209 withdrawn
5/15/2025legislatureConrad AM1399 withdrawn
5/15/2025legislatureCavanaugh, M. FA224 withdrawn
5/15/2025legislatureRaybould AM1433 withdrawn
5/15/2025legislatureMotion to return to Select File withdrawn
5/15/2025legislatureCavanaugh, M. FA223 not considered
5/15/2025legislatureSpivey FA203 withdrawn
5/15/2025legislatureMotion to return to Select File withdrawn
5/15/2025legislatureCavanaugh, M. FA225 not considered
5/15/2025legislatureMotion to return to Select File withdrawn
5/15/2025legislatureCavanaugh, M. FA226 not considered
5/15/2025legislatureRaybould AM1420 withdrawn
5/15/2025legislatureMotion to return to Select File withdrawn
5/15/2025legislatureMcKinney FA205 not considered
5/15/2025legislatureMotion to return to Select File failed
5/15/2025legislature
Bill Text
Introduced
6/6/2025
Enrolled / Slip Law
Final / Enacted