# Nebraska LB265: 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 Nebraska LB265, 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, is a 109th Legislature 1st and 2nd Sessions legislature bill sponsored by Tony Sorrentino; status signed, last action 2025-06-06 (Provisions/portions of LB536 amended into LB265 by AM900); PRIA reads it as touching household money (as of 2026-10-17). - Canonical: https://policyrisk.com/state-bill/NE-LB265-109 - As of: 2026-10-17 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Nebraska LB265 - State: Nebraska - Session: 109th Legislature 1st and 2nd Sessions - Title: 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 - Status: signed - Chamber: legislature - Introduced: 2025-01-15 - Last action: 2025-06-06, Provisions/portions of LB536 amended into LB265 by AM900 - Sponsor: Tony Sorrentino - Cosponsors: 0 - Subjects: Business and Labor Committee - Touches household money: yes - Roll calls: 10 (342 yes, 71 no in all) - Economic provisions PRIA read: 17 ## Summary No summary available. ## Bill overview: provisions PRIA read - $574M for Perkins County Canal: benefit, high. 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: benefit, high. 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: benefit, high. 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 Critic… - Grants to modernize small manufacturers: benefit, medium. 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… - Lower employer unemployment taxes, 2025–2029: benefit, medium. 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. - $10M for youth outdoor education: benefit, low. 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: benefit, low. 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. Th… - Funds for risk and state operations: benefit, low. 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: benefit, low. 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: benefit, low. 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… - Public contracts: final 3% held for unemployment tax: cost, low. 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 a… - Guardrail on reserve fund and $11.3M for health: mixed, high. 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, 2… - Big moves between reserves and General Fund: mixed, high. 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… - New UI tax rates and fund: mixed, medium. 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 unemp… - When the law takes effect: mixed, low. 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: mixed, low. 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: mixed, low. 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,… ## Sponsors and cosponsors - Sponsor: Tony Sorrentino, Senate ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2025-06-02 | legislature | Final Reading | pass | 44 | 5 | | | 2025-05-29 | legislature | Vote | fail | 42 | 0 | 7 | | 2025-05-29 | legislature | Vote | fail | 43 | 2 | 4 | | 2025-05-29 | legislature | Vote | fail | 11 | 31 | 7 | | 2025-02-20 | legislature | Vote | fail | 37 | 0 | 12 | | 2025-02-20 | legislature | Vote | fail | 36 | 0 | 13 | | | legislature | Vote | fail | 36 | 0 | 13 | | | legislature | Vote | fail | 43 | 2 | 4 | | | legislature | Vote | fail | 39 | 0 | 10 | | | legislature | Vote | fail | 11 | 31 | 7 | ## Actions (62) - 2025-06-06: Provisions/portions of LB536 amended into LB265 by AM900 (legislature) - 2025-06-04: Approved by Governor on June 4, 2025 (legislature) - 2025-06-02: Presented to Governor on June 2, 2025 (legislature) - 2025-06-02: President/Speaker signed (legislature) - 2025-06-02: Passed on Final Reading with Emergency Clause 44-5*-0 (legislature) - 2025-06-02: Dispensing of reading at large approved (legislature) - 2025-06-02: Dungan FA340 withdrawn (legislature) - 2025-06-02: Dungan FA339 withdrawn (legislature) - 2025-06-02: Conrad FA338 withdrawn (legislature) - 2025-06-02: Conrad FA337 withdrawn (legislature) - 2025-06-02: Conrad FA336 withdrawn (legislature) - 2025-06-02: Conrad MO338 withdrawn (legislature) - 2025-05-29: Enrollment and Review ST49 recorded (legislature) - 2025-05-29: Enrollment and Review ST49 filed (legislature) - 2025-05-29: Placed on Final Reading with ST49 (legislature) - 2025-05-29: Dungan FA340 filed (legislature) - 2025-05-29: Dungan FA339 filed (legislature) - 2025-05-29: Conrad FA338 filed (legislature) - 2025-05-29: Conrad FA337 filed (legislature) - 2025-05-29: Conrad FA336 filed (legislature) - 2025-05-29: Conrad MO338 Recommit to the Business and Labor Committee filed (legislature) - 2025-05-29: Advanced to Enrollment and Review for Engrossment (legislature) - 2025-05-29: Sorrentino AM900 adopted (legislature) - 2025-05-29: Cavanaugh, M. AM1645 lost (legislature) - 2025-05-29: Cavanaugh, M. AM1645 to AM900 filed (legislature) - 2025-05-29: Conrad AM1466 withdrawn (legislature) - 2025-05-29: Conrad AM1643 adopted (legislature) - 2025-05-29: Conrad AM977 withdrawn (legislature) - 2025-05-29: Conrad MO339 prevailed (legislature) - 2025-05-29: Conrad MO339 Withdraw AM977 and substitute AM1643 filed (legislature) - 2025-05-29: Objection to unanimous consent request to substitute amendment (legislature) - 2025-05-29: Conrad AM1643 to AM900 filed (legislature) - 2025-05-29: Cavanaugh, J. MO329 withdrawn (legislature) - 2025-05-29: Cavanaugh, J. MO329 pending (legislature) - 2025-05-29: Cavanaugh, J. MO329 Bracket until June 9, 2025 filed (legislature) - 2025-05-29: Conrad AM977 pending (legislature) - 2025-05-29: Sorrentino AM900 pending (legislature) - 2025-05-20: Conrad AM1466 to AM900 filed (legislature) - 2025-04-09: Passed over (legislature) - 2025-04-09: Conrad AM977 pending (legislature) - 2025-04-09: Motion to overrule Chair withdrawn (legislature) - 2025-04-09: Chair ruled AM900 is germane (legislature) - 2025-04-09: Conrad AM977 to AM900 filed (legislature) - 2025-04-09: Sorrentino AM900 pending (legislature) - 2025-04-09: Enrollment and Review ER17 adopted (legislature) - 2025-04-08: Sorrentino AM900 filed (legislature) - 2025-02-26: Enrollment and Review ER17 filed (legislature) - 2025-02-26: Placed on Select File with ER17 (legislature) - 2025-02-20: Advanced to Enrollment and Review Initial (legislature) - 2025-02-20: Conrad AM265 adopted (legislature) - 2025-02-20: Conrad AM262 withdrawn (legislature) - 2025-02-20: Conrad AM259 withdrawn (legislature) - 2025-02-20: Conrad AM261 withdrawn (legislature) - 2025-02-19: Pending (legislature) - 2025-02-13: Conrad AM265 filed (legislature) - 2025-02-13: Conrad AM262 filed (legislature) - 2025-02-12: Conrad AM259 filed (legislature) - 2025-02-12: Conrad AM261 filed (legislature) - 2025-02-07: Placed on General File (legislature) - 2025-01-24: Notice of hearing for February 03, 2025 (legislature) - 2025-01-17: Referred to Business and Labor Committee (legislature) - 2025-01-15: Date of introduction (legislature) ## Bill text - Introduced, 2025-01-15: [PDF](https://nebraskalegislature.gov/FloorDocs/109/PDF/Intro/LB265.pdf) - Enrolled / Slip Law: [PDF](https://nebraskalegislature.gov/FloorDocs/109/PDF/Slip/LB265.pdf) - Final / Enacted: [PDF](https://nebraskalegislature.gov/FloorDocs/109/PDF/Final/LB265.pdf) ## 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 (failed) - LB13: Require the Department of Health and Human Services to file a state plan amendment relating to child care (failed) - LB677: Change provisions of the Nebraska Medical Cannabis Regulation Act and provide for regulation of medical cannabis (failed) - LB170: Eliminate the sales tax exemptions for candy and soft drinks (failed) - LB646: Provide an exemption from brand inspections and change fees under the Livestock Brand Act (failed) - LB714: Change provisions relating to motor vehicle taxes and fees (failed) ## Sources - [Introduced (PDF)](https://nebraskalegislature.gov/FloorDocs/109/PDF/Intro/LB265.pdf) - [Enrolled / Slip Law (PDF)](https://nebraskalegislature.gov/FloorDocs/109/PDF/Slip/LB265.pdf) - [Final / Enacted (PDF)](https://nebraskalegislature.gov/FloorDocs/109/PDF/Final/LB265.pdf) ## Related - [LB468: Change provisions relating to inheritance taxes, change certain fee and tax pro…](https://policyrisk.com/state-bill/NE-LB468-109) - [LB13: Require the Department of Health and Human Services to file a state plan amendm…](https://policyrisk.com/state-bill/NE-LB13-109) - [LB677: Change provisions of the Nebraska Medical Cannabis Regulation Act and provide f…](https://policyrisk.com/state-bill/NE-LB677-109) - [LB170: Eliminate the sales tax exemptions for candy and soft drinks](https://policyrisk.com/state-bill/NE-LB170-109) - [LB646: Provide an exemption from brand inspections and change fees under the Livestock…](https://policyrisk.com/state-bill/NE-LB646-109) - [LB714: Change provisions relating to motor vehicle taxes and fees](https://policyrisk.com/state-bill/NE-LB714-109) - [Nebraska bills](https://policyrisk.com/states/nebraska/bills) - [Nebraska state hub](https://policyrisk.com/states/nebraska) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/NE-LB265-109 (as of 2026-10-17).