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NebraskaLB265109th Legislature 1st and 2nd SessionslegislatureWALLET

Adopt the Manufacturing Modernization and Workforce Development Pilot Investment Act, transfer, change, and eliminate funds, change provisions relating to the state unemployment insurance tax rate, and eliminate the Nebraska Worker Training Board

Sponsored By: Tony Sorrentino

Signed by Governor

Business and Labor Committee

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 1 costs, 2 mixed.

Client employers now liable for unemployment taxes

Professional employer organizations must report and pay unemployment taxes under the client’s employer account and combined tax rate. The client employer is liable for any unpaid tax, penalties, and interest. Worksite employees count as the client’s employees under unemployment law.

Matching grants for small manufacturers

The state offers one-time matching grants to help manufacturers modernize. To qualify, you must be in NAICS 31–33, be at least 3 years old, get 51% or more of revenue from manufactured goods, and have 3 or more full-time employees. Grants match private money dollar-for-dollar, up to $50,000. Apply October 1, 2025 through November 1, 2026; projects started before you apply are not eligible. If you later fail these eligibility rules, you must repay the grant. The pilot can award only $250,000 total, and the Labor Department sets detailed rules.

Lower and clearer employer unemployment taxes

From January 1, 2025 through December 31, 2029, employers’ final average combined unemployment insurance tax rate is cut 5%. Each year by December 1, the Commissioner sets the state unemployment insurance rate. The state rate is 0% if the trust fund average is over 1% of state taxable wages, or it meets the 30% balance test. Otherwise, at least 80% of the combined rate is the employer share and up to 20% is the state rate; employers at 5.4% or more combined have a 0% state rate.

Unemployment funds replaced and money redirected

Starting July 1, 2025, state unemployment taxes (minus refunds) go into the new Workforce Development Program Cash Fund. On that date, the State Unemployment Insurance Trust Fund ends and its balance moves to the Workforce Development Program Cash Fund. The Nebraska Training and Support Cash Fund is created to pay training and some administration, but it also ends July 1, 2025, and any money left then transfers to the Workforce Development Program Cash Fund. The Workforce Development Program Cash Fund pays workforce grants, some unemployment tax administration, labor studies, and can pay unemployment benefits if needed. Between July 1, 2025 and June 30, 2026, $2.95 million is transferred from this fund to the General Fund.

Sponsors & Cosponsors

Sponsor

  • Tony Sorrentino

    legislature

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 342 • No: 71

legislature vote • 4/24/2026

Vote

Yes: 39 • No: 0 • Other: 10

legislature vote • 4/24/2026

Vote

Yes: 11 • No: 31 • Other: 7

legislature vote • 4/24/2026

Vote

Yes: 43 • No: 2 • Other: 4

legislature vote • 4/24/2026

Vote

Yes: 36 • No: 0 • Other: 13

legislature vote • 6/2/2025

Final Reading

Yes: 44 • No: 5

legislature vote • 5/29/2025

Vote

Yes: 42 • No: 0 • Other: 7

legislature vote • 5/29/2025

Vote

Yes: 11 • No: 31 • Other: 7

legislature vote • 5/29/2025

Vote

Yes: 43 • No: 2 • Other: 4

legislature vote • 2/20/2025

Vote

Yes: 37 • No: 0 • Other: 12

legislature vote • 2/20/2025

Vote

Yes: 36 • No: 0 • Other: 13

Actions Timeline

  1. Approved by Governor on June 4, 2025

    6/6/2025legislature

  2. Provisions/portions of LB536 amended into LB265 by AM900

    6/6/2025legislature

  3. Conrad MO338 withdrawn

    6/2/2025legislature

  4. Conrad FA336 withdrawn

    6/2/2025legislature

  5. Conrad FA337 withdrawn

    6/2/2025legislature

  6. Conrad FA338 withdrawn

    6/2/2025legislature

  7. Dungan FA339 withdrawn

    6/2/2025legislature

  8. Dungan FA340 withdrawn

    6/2/2025legislature

  9. Dispensing of reading at large approved

    6/2/2025legislature

  10. Passed on Final Reading with Emergency Clause 44-5*-0

    6/2/2025legislature

  11. President/Speaker signed

    6/2/2025legislature

  12. Presented to Governor on June 2, 2025

    6/2/2025legislature

  13. Sorrentino AM900 pending

    5/29/2025legislature

  14. Conrad AM977 pending

    5/29/2025legislature

  15. Cavanaugh, J. MO329 Bracket until June 9, 2025 filed

    5/29/2025legislature

  16. Cavanaugh, J. MO329 pending

    5/29/2025legislature

  17. Cavanaugh, J. MO329 withdrawn

    5/29/2025legislature

  18. Conrad AM1643 to AM900 filed

    5/29/2025legislature

  19. Objection to unanimous consent request to substitute amendment

    5/29/2025legislature

  20. Conrad MO339 Withdraw AM977 and substitute AM1643 filed

    5/29/2025legislature

  21. Conrad MO339 prevailed

    5/29/2025legislature

  22. Conrad AM977 withdrawn

    5/29/2025legislature

  23. Conrad AM1643 adopted

    5/29/2025legislature

  24. Conrad AM1466 withdrawn

    5/29/2025legislature

  25. Cavanaugh, M. AM1645 to AM900 filed

    5/29/2025legislature

Bill Text

  • Introduced

    6/6/2025

    PDF

  • Enrolled / Slip Law

    PDF

  • Final / Enacted

    PDF

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