All Roll Calls
Yes: 342 • No: 71
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
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
17 provisions identified: 10 benefits, 1 costs, 6 mixed.
$574M for Perkins County Canal
The state transfers $574.5 million from the Cash Reserve Fund to the Perkins County Canal Project Fund by June 30, 2024. The budget administrator sets the timing and amounts. This funds a major water infrastructure project.
Funds for economic recovery and growth
The state transfers $200 million from the Cash Reserve Fund to the Economic Recovery Contingency Fund in FY 2023–24. It also transfers $20 million to the Economic Development Cash Fund in the same fiscal window. These moves finance economic recovery and development efforts.
More funding for capital projects
The state adds $166.7 million to the Nebraska Capital Construction Fund in FY 2023–24 and $29.46 million in FY 2024–25. It also moves $70 million to the Shovel-Ready Capital Recovery and Investment Fund and $2 million to the Site and Building Development Fund. Another $10 million goes to the Critical Infrastructure Facilities Cash Fund and $5 million to the Municipality Infrastructure Aid Fund in early July 2024. These transfers support buildings, infrastructure, and shovel-ready projects.
Guardrail on reserve fund and $11.3M for health
Transfers from the Cash Reserve Fund for Nebraska Property Tax Incentive Act obligations are not allowed unless the balance after the move is at least $500,000,000. The State Treasurer also transfers $11,320,000 from the Cash Reserve Fund to the Health and Human Services Cash Fund between July 1, 2023 and June 30, 2024, as directed by the budget administrator.
Big moves between reserves and General Fund
The state moves $440 million from the General Fund into the Cash Reserve Fund in FY 2023–24. It also transfers $28 million from the JEDI Fund into the Cash Reserve Fund by June 30, 2024. The Cash Reserve sends $4 million back to the General Fund in FY 2024–25 and $5 million in FY 2026–27. Lawmakers also state an intent to move $200 million from the Cash Reserve to the General Fund in FY 2026–27 if the reserve stays at least 16% of that year’s General Fund appropriations.
Grants to modernize small manufacturers
Nebraska manufacturers can get a one-time grant that matches private funds dollar-for-dollar, up to $50,000. You must be NAICS 31–33, in business 3+ years, have 3+ full-time workers, and get at least 51% of revenue from manufactured goods. Projects cannot start before you apply. Apply between Oct 1, 2025 and Nov 1, 2026. The state set aside up to $250,000 total for these grants, and you must repay if you later fail eligibility.
Lower employer unemployment taxes, 2025–2029
From January 1, 2025 through December 31, 2029, the final average combined unemployment tax rate is cut by 5%. Employers pay less in payroll taxes for those years.
New UI tax rates and fund
Beginning July 1, 2025, the State Unemployment Insurance Trust Fund ends. Employers pay the combined unemployment tax to the Labor Commissioner, who routes money to the Workforce Development Program Cash Fund and the Unemployment Trust Fund. Each year by Dec 1, the Commissioner sets the state unemployment tax rate; the old automatic zero-rate triggers are removed. The reserve ratio now uses only the Unemployment Trust Fund balance as of Sept 30. This changes where payments go and how employer rates are set.
$10M for youth outdoor education
The state transfers $10 million to the Youth Outdoor Education Innovation Fund in FY 2023–24. The budget administrator sets timing and amounts. This money supports youth outdoor education efforts.
More money for school and public safety
The state adds $10 million to the School Safety and Security Fund as soon as possible after Sept 2, 2023. It adds $1.115 million to the Public Safety Cash Fund in FY 2023–24. It also moves $5 million to the state public safety communications system in FY 2023–24 and $2.425 million in FY 2024–25. These transfers support school security and statewide public safety communications.
Funds for risk and state operations
The state transfers $3 million to the Risk Loss Trust and $2.5 million to the Materiel Division Revolving Fund in FY 2023–24. It also adds $3.5 million to the Health and Human Services Cash Fund in FY 2024–25. These moves support risk management, procurement, and HHS operations.
More money for State Insurance Fund
The state transfers $5 million to the State Insurance Fund on or before July 10, 2024. It also adds $3.25 million as soon as possible after April 2, 2024. These transfers increase the fund’s cash for insurance operations.
New workforce fund and grant rules
The law creates the Workforce Development Program Cash Fund to run job-training grants, manage unemployment tax work, pay benefits if needed, and support the manufacturing pilot. On July 1, 2025, the Nebraska Training and Support Cash Fund and the Sector Partnership Program Fund end, and all money moves into this fund. Unpaid grants awarded before that date can still be paid from the new fund if the award terms are met. Each year by April 30, the state workforce board may submit up to 18 grant proposals with clear goals. The Labor Commissioner may approve, change, or reject them and may approve up to 3 alone; if those use over 25% of the fund’s unobligated starting balance, the commissioner must report within 90 days.
Public contracts: final 3% held for unemployment tax
Public construction or improvement contracts must state the contractor will pay combined unemployment taxes and interest to both funds. Before the owner releases the final 3% of the contract, they must get a clearance letter from the Labor Commissioner or a bond that guarantees full payment. This applies to contracts let by the state, its agencies, counties, cities, villages, school districts, and public boards.
When the law takes effect
Parts of this law take effect immediately upon approval due to an emergency clause. The act’s operative date is July 1, 2025, unless another section states a different date. This sets when many changes start.
Shifts in Governor’s emergency fund
The state adds $25 million to the Governor’s Emergency Cash Fund by June 30, 2025, and $10 million in FY 2025–26. It also moves $15.841 million from the Governor’s Emergency Cash Fund back to the Cash Reserve Fund by June 30, 2024. These shifts change emergency cash levels over time.
Workforce training rules and funding shift
The Job Training Cash Fund continues to reimburse job and skills training and now can support added uses named in law. The state moves $2.95 million from the Workforce Development Program Cash Fund to the General Fund in fiscal year 2025–26. The law also repeals several workforce-related statutes, ending those sections. These steps change how training rules and dollars are managed.
Sponsors & Cosponsors
Sponsor
Tony Sorrentino
Senate
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
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: 43 • No: 2 • Other: 4
legislature vote • 5/29/2025
Vote
Yes: 11 • No: 31 • Other: 7
legislature vote • 2/20/2025
Vote
Yes: 37 • No: 0 • Other: 12
legislature vote • 2/20/2025
Vote
Yes: 36 • No: 0 • Other: 13
legislature vote • Unknown
Vote
Yes: 36 • No: 0 • Other: 13
legislature vote • Unknown
Vote
Yes: 43 • No: 2 • Other: 4
legislature vote • Unknown
Vote
Yes: 39 • No: 0 • Other: 10
legislature vote • Unknown
Vote
Yes: 11 • No: 31 • Other: 7
Actions Timeline
Provisions/portions of LB536 amended into LB265 by AM900
6/6/2025legislatureApproved by Governor on June 4, 2025
6/4/2025legislaturePresented to Governor on June 2, 2025
6/2/2025legislaturePresident/Speaker signed
6/2/2025legislaturePassed on Final Reading with Emergency Clause 44-5*-0
6/2/2025legislatureDispensing of reading at large approved
6/2/2025legislatureDungan FA340 withdrawn
6/2/2025legislatureDungan FA339 withdrawn
6/2/2025legislatureConrad FA338 withdrawn
6/2/2025legislatureConrad FA337 withdrawn
6/2/2025legislatureConrad FA336 withdrawn
6/2/2025legislatureConrad MO338 withdrawn
6/2/2025legislatureEnrollment and Review ST49 recorded
5/29/2025legislatureEnrollment and Review ST49 filed
5/29/2025legislaturePlaced on Final Reading with ST49
5/29/2025legislatureDungan FA340 filed
5/29/2025legislatureDungan FA339 filed
5/29/2025legislatureConrad FA338 filed
5/29/2025legislatureConrad FA337 filed
5/29/2025legislatureConrad FA336 filed
5/29/2025legislatureConrad MO338 Recommit to the Business and Labor Committee filed
5/29/2025legislatureAdvanced to Enrollment and Review for Engrossment
5/29/2025legislatureSorrentino AM900 adopted
5/29/2025legislatureCavanaugh, M. AM1645 lost
5/29/2025legislatureCavanaugh, M. AM1645 to AM900 filed
5/29/2025legislature
Bill Text
Introduced
1/15/2025
Enrolled / Slip Law
Final / Enacted
Related Bills
LB468, Change provisions relating to inheritance taxes, change certain fee and tax provisions, and eliminate a sales tax exemption relating to data centers
LB13, Require the Department of Health and Human Services to file a state plan amendment relating to child care
LB677, Change provisions of the Nebraska Medical Cannabis Regulation Act and provide for regulation of medical cannabis
LB170, Eliminate the sales tax exemptions for candy and soft drinks
LB646, Provide an exemption from brand inspections and change fees under the Livestock Brand Act
LB714, Change provisions relating to motor vehicle taxes and fees