Nebraska legislative session comes to a close
April 22, 2026
As the second session of the 109th Legislature came to a close, Gov. Jim Pillen signed both mainline budget bills (LB 1071 and LB 1071) on Tuesday, April 7, without any line-item vetoes, a rare occurrence. Over the course of the session, the Center worked to protect and support rural communities through advocacy on issues such as small business support, affordable housing, agriculture, and climate resilience.
A big win for small businesses
A major priority of the Center for Rural Affairs this session, LB 1205, was signed into law on April 14, securing up to $3 million annually for the Microenterprise Assistance Program. LB 1205 is part of a package of bills that supports the Business Innovation Act (BIA), which houses several business programs, including the Microenterprise Assistance Program. The Center is one of the Small Business Collaborative partners that use this funding to pair direct lending with business coaching and help entrepreneurs statewide achieve business ownership success.
LB 847, the Nebraska Registered Apprenticeship Act, introduced by Sen. Kauth, also passed this session. The omnibus bill includes LB 1015 and LB 1044. Together, these measures increase appropriations for the BIA to $15 million annually, establish a cash fund source, and implement statutory changes needed by the Department of Labor to administer the new funding stream. Gov. Pillen strongly supports the BIA and economic development.
Thank you to all who took action and contacted your senators in support of the BIA and microenterprise programs.
Investments in affordable housing
Another Center priority was bolstering affordable housing. LB 1067 was signed into law on April 14. It modestly increases the documentary stamp tax, which is a fee paid by the seller upon a real estate transaction. This small increase supports the state’s Rural Workforce and Middle Income Housing Funds and helps secure ongoing funding for rural housing projects.
LB 768 also passed into law April 14. It gives agency to the Nebraska Investment Finance Authority to manage the Rural Workforce Housing Fund, among others. Together, these bills signal strong support for rural housing development and long-term strategic investment in rural communities.
Reduced and free school meals expanded
After a tense debate, LB 966, which will provide free school lunches for children who previously qualified for “reduced” lunches, was signed into law. This was only after Sen. Machaela Cavanaugh secured funds from a private donor to pilot the program for the next five years.
Ultimately, this public-private partnership gives the legislature time to adjust future funding levels and sources while having the act secured in statute. Thank you to those who took action and contacted your senators in support of the Hunger-Free Schools Act.
Child care support continues for working families
Child care also had a significant win this session; LB 304 eliminated a sunset date for child care subsidies, maintaining more affordable rates for working families. The passage of LB 304 makes the current income eligibility requirements permanent, keeping around 2,500 families eligible for assistance and in the workforce.
Protection still needed for Environmental Trust Fund
The Constitutional Amendment created to safeguard funding sweeps from the Nebraska Environmental Trust Fund (LR 298CA) did not pass and is likely to be revised and reintroduced next year.
Looking ahead…
Overall, this session reinforced that the legislature can come together to pass important bills. Challenges such as a significant budget deficit, personal disagreements, a tight timeframe, and a heated political climate did not stop Nebraska lawmakers from advancing bills that positively impact rural communities.
With elections on the horizon, next year will bring a new class of state senators who will face similar challenges, hopefully with fresh ideas for moving our state forward.
Please check out our final bill tracker here.
Have a question or comment? Email [email protected] or call 402.902.0953.
Nebraska lawmakers race to close budget gap
March 27, 2026
Advancing the mid-biennium budget amid an ongoing projected shortfall has remained the primary focus of the Nebraska Legislature over the past two weeks. After failing to secure the votes needed for cloture last week, the mainline budget bill (LB 1071) was revised and passed this Thursday to its third and final round of debate in a 34-7 vote.
With approximately nine legislative working days remaining in the session, many priority bills are still awaiting consideration and will most likely go unheard. Because this is the second session of Nebraska’s biennium, bills that go undebated do not carry over into next year and will need to be reintroduced.
Take action
- Contact your representatives for their support on:
- Track legislation affecting rural communities by following priority bills and staying informed throughout the session at cfra.org/policy/bill-tracker.
- If you see a bill that matters to you or your community, you can still email committee members to encourage them to support the legislation.
Not sure where to start? Email [email protected] or call 402.902.0953.
Small Business
Legislation supporting the Business Innovation Act (BIA) and Microenterprise Assistance Program have advanced to the final stage of debate and need your support to cross the finish line:
SUPPORT LB 1205 (Sen. Clouse): Requires appropriations of up to $3 million annually for microenterprise programming in the future. The Center provided supportive in-person testimony. LB 1205 has advanced to Enrollment and Review for Engrossment, a step in which the bill will be checked for accuracy and proofread to be ready for Final Reading.
Community Resources
SUPPORT LB 1067 (Sen. Hallstrom): Ensures stable, predictable funding for two crucial housing programs that support workforce stability and community growth. LB 1067 proposes a moderate increase to the documentary stamp tax to increase funding for the Middle-Income Workforce Housing Fund and the Rural Workforce Housing Fund. The Center provided supportive testimony in-person. This has been advanced to Enrollment and Review Initial on March 9, with Amendment (AM) 2213.
Food Systems
SUPPORT LB 966 (Sen. M. Cavanaugh): The Hunger-Free Schools Act aims to make more students eligible for free school meals by using state funds to make all reduced-price eligible student meals free. The Center provided a written comment in support. LB 966 was placed on General File on Feb. 24. LB 966 was prioritized by Sen. Hunt.
Nebraska lawmakers work to advance priority bills while closing budget deficit
March 13, 2026
With roughly one month left in the Nebraska legislative session, senators are turning their attention to advancing priority legislation and finalizing a balanced state budget, which is required by the Nebraska State Constitution. Nebraska is facing a projected deficit of more than $646 million, and lawmakers are far from a consensus on how to close that gap.
Addressing the budget situation will take up a significant portion of the time remaining in the short session, with lawmakers working to have a finalized plan by approximately March 25, 2026. Limited floor debate time will be left to resolve outstanding legislating. At the same time, election season is beginning to take shape, and candidates are launching new campaigns with the hope of getting elected to the new slate of state senators for next session in January 2027.
Since this is the second session of the biennium, bills that do not advance this year do not remain viable next year. 2027 will include all-new bill introductions and budget.
Take action
- Contact your representatives for their support on:
- Track legislation affecting rural communities by following priority bills and staying informed throughout the session at cfra.org/policy/bill-tracker.
- If you see a bill that matters to you or your community, you can still email committee members to encourage them to support the legislation.
Not sure where to start? Email [email protected] or call 402.902.0953.
Small Business
Bills that support the Business Innovation Act (BIA) and Microenterprise Assistance Program have advanced to the final stage of debate and need your support to cross the finish line. This statewide program, which provides business coaching and direct capital lending to businesses with 10 or fewer employees, has been established for nearly 30 years. The Center supports the following legislation impacting this program:
SUPPORT LB 1167 (Sen. Dorn): Ensures $3 million in funding to the Microenterprise Assistance Program for the current fiscal year. LB 1167 was heard before the Appropriations Committee on Feb. 12, with the Center providing supportive testimony. This bill remains in the Appropriations Committee, which decides how much funding programs are to receive.
SUPPORT LB 1205 (Sen. Clouse): Requires appropriations of up to $3 million annually for microenterprise programming in the future. The Center provided supportive in-person testimony. LB 1205 advanced to Enrollment and Review for Engrossment, a step in which the bill will be checked for accuracy and proofread to be ready for the final debate stage.
SUPPORT LB 1044 (Sen. Prokop): Reinforces legislative intent to fund the BIA at $15 million per year. The Center submitted a written comment of support. This has been moved to General File, when the full legislature will have the opportunity to debate and vote on it.
Community Resources
SUPPORT LB 938 (Sen. Hallstrom): Homeownership remains one of the most reliable ways families build wealth and invest in rural communities. LB 938 helps address this challenge by creating First-Time Home Buyer Savings Accounts, allowing individuals to set aside dedicated savings with a state income tax adjustment. The Center provided a written comment in support. LB 938 has advanced to General File.
SUPPORT LB 1067 (Sen. Hallstrom): Ensures stable, predictable funding for two crucial housing programs that support workforce stability and community growth. LB 1067 proposes a moderate increase to the documentary stamp tax to increase funding for the Middle-Income Workforce Housing Fund and the Rural Workforce Housing Fund. The Center provided supportive testimony in-person. This has been advanced to Enrollment and Review Initial on March 9, with Amendment (AM) 2213.
SUPPORT LB 929 (Sen. Fredrickson): Prevents the state from implementing higher than necessary co-pays for Medicaid recipients to receive health care services. When people are struggling to cover household costs, extra costs can be a barrier to medical treatment, especially in rural areas where patients are much more likely to travel greater distances to seek care. The Center provided a written comment in support. LB 929 was prioritized by Sen. Fredrickson.
Food Systems
SUPPORT LB 966 (Sen. M. Cavanaugh): The Hunger-Free Schools Act aims to make more students eligible for free school meals by using state funds to make all reduced-price eligible student meals free. The Center provided a written comment in support. LB 966 was placed on General File on Feb. 24. LB 966 was prioritized by Sen. Hunt.
Priorities selected in the Unicameral; halfway through the legislative session
Feb. 27, 2026
Only around 30 days are left for floor debate, which means senators still have many bills to deal with in a limited amount of time. Today is the last expected day of public hearings, and senators will begin all-day floor debates March 3.
This week marks the halfway point of the second session of the 109th Nebraska legislature. Priority bill designations have been announced; each senator may designate one bill as their priority legislation, each committee gets two priority designations, and the speaker gets 25 priorities. Priority bills receive preferential scheduling, which is imperative in this short session.
Bills that received a priority designation last session must be re-prioritized this year, and if a bill was not prioritized it is unlikely to advance this session. Many bills, or parts of bills, will get amended onto priority bills as a way to carry them forward.
Finally, thank you to our supporters who took action and contacted members of the Natural Resources Committee in response to LR 298CA, the constitutional amendment that would be voted on by the public during the general election. It safeguards funds for the Nebraska Environmental Trust (NET). Your outreach underscores the importance of conservation efforts and ensuring state dollars remain available to support water quality, wildlife habitat, and environmental projects across Nebraska. LR 298CA has been prioritized by Sen. Brandt and is still in the Natural Resources Committee—please contact members of this committee if you would like to see it advance.
Take action
- Contact your representatives for their support on:
- Track legislation affecting rural communities by following priority bills and staying informed throughout the session at cfra.org/policy/bill-tracker.
- If you see a bill that matters to you or your community, you can still email committee members to encourage them to support the legislation.
Not sure where to start? Email [email protected] or call 402.902.0953.
Small Business
Bills that support the Business Innovation Act and Microenterprise Assistance Program received priority designation from Sen. Brandt. This statewide program provides business coaching and direct capital lending to businesses with 10 or fewer employees and has been established for nearly 30 years. The Center supports the following legislation impacting this program:
SUPPORT LB 1167 (Sen. Dorn): Ensures $3 million in funding to the Microenterprise Assistance Program for the current fiscal year. LB 1167 was heard before the Appropriations Committee on Feb. 12, with the Center providing supportive testimony.
SUPPORT LB 1205 (Sen. Clouse): Requires appropriations of up to $3 million annually for microenterprise programming in the future. The Center provided supportive in-person testimony. LB 1205 was prioritized by the Speaker and was scheduled for floor debate on Feb. 25.
SUPPORT LB 1044 (Sen. Prokop): Reinforces legislative intent to fund the BIA at $15 million per year. The Center submitted a written comment of support. This has been moved to General File.
Community Resources
SUPPORT LB 938 (Sen. Hallstrom): Homeownership remains one of the most reliable ways families build wealth and invest in rural communities. LB 938 helps address this challenge by creating First-Time Home Buyer Savings Accounts, allowing individuals to set aside dedicated savings with a state income tax adjustment. The Center provided a written comment in support. LB 938 has been prioritized by Sen. Storm.
SUPPORT LB 1067 (Sen. Hallstrom): Ensures stable, predictable funding for two crucial housing programs that support workforce stability and community growth. LB 1067 proposes a moderate increase to the documentary stamp tax to increase funding for the Middle-Income Workforce Housing Fund and the Rural Workforce Housing Fund. The Center provided supportive testimony in-person. Sen. Spivey prioritized this bill.
SUPPORT LB 929 (Sen. Fredrickson): Prevents the state from implementing higher than necessary co-pays for Medicaid recipients to receive health care services. When people are struggling to cover household costs, extra costs can be a barrier to medical treatment, especially in rural areas where patients are much more likely to travel greater distances to seek care. The Center provided a written comment in support. LB 929 was prioritized by Sen. Fredrickson.
Environment and climate resilience
SUPPORT LB 1186 (Sen. J. Cavanaugh): The Affordable American Energy and Jobs Act promotes the development of affordable energy resources (wind, solar, biomass, geothermal, hydropower, and battery storage) by establishing a structure for power purchase agreements between private suppliers and public utilities. The bill aims to establish best practices for siting, create a task force to develop the framework and a cash fund to support implementation, and modify the nameplate capacity tax distribution to encourage county participation. A Revenue Committee hearing was held on Feb. 19. The Center provided a written comment in support.
Food Systems
SUPPORT LB 966 (Sen. M. Cavanaugh): The Hunger-Free Schools Act aims to make more students eligible for free school meals by using state funds to make all reduced-price eligible student meals free. The Center provided a written comment in support. LB 966 was placed on General File Feb. 24. LB 966 was prioritized by Sen. Hunt.
Hearings begin in the Unicameral; senators set session priorities
Feb. 13, 2026
Public hearings for bills introduced this legislative session continue and will conclude on Feb. 27. Mornings in the Unicameral have been dedicated to full floor debate. Much of the legislation has been focused on bills that have minimal fiscal impact as the Legislature continues to work on closing a $471 million budget shortfall.
Next week, priority bills will be designated by individual senators, the speaker, and each committee. During full floor debate, priority bills receive the entire attention of the Legislature, making these bills the most important to monitor.
Small business
Center staff provided in-person testimony on two pieces of legislation last week to provide funding for the Microenterprise Assistance Program. The program is part of the Business Innovation Act, and provides loans and coaching for businesses employing 10 or fewer people. The Center supports the following legislation impacting this program:
SUPPORT LB 1167 (Sen. Dorn): Ensures $3 million in funding to the Microenterprise Assistance Program for the current fiscal year. LB 1167 was heard before the Appropriations Committee on Feb. 12, with the Center providing supportive testimony.
SUPPORT LB 1205 (Sen. Clouse): Requires appropriations of up to $3 million annually for microenterprise programming in the future. LB 1205 was heard before the Banking, Insurance, and Commerce Committee on Feb. 10, with the Center providing supportive testimony.
Community resources
SUPPORT LB 929 (Sen. Fredrickson): Prevents the state from implementing higher than necessary co-pays for Medicaid recipients to receive health care services. When people are struggling to cover household costs, extra costs can be a barrier to medical treatment, especially in rural areas where patients are much more likely to travel greater distances to seek care. LB 929 was heard before the Health and Human Services Committee on Feb. 5, with the Center providing a comment of support.
SUPPORT LB 982 (Sen. DeBoer): Provides funding for the Broadband Bridge Program, which brings reliable, high-speed fiber internet to rural communities. Access to a reliable, fast internet connection is a necessity for individuals, businesses, and institutions. LB 982 was heard before the Appropriations Committee on Feb. 4, with the Center providing a comment of support.
SUPPORT LB 1221 (Sen. Ballard): Defines conditions and parameters for short-term work requirement exemptions for Medicaid eligibility. Federal law requires those enrolled in Medicaid to prove they meet work requirements and Nebraska plans to begin these requirements early in May 2026. This legislation exempts those who require in-patient medical treatment or must travel outside of their communities frequently for medical treatment for work requirements, which reduces unnecessary stress and burdens for people during an already stressful time. LB 1221 was heard before the Health and Human Services Committee on Feb. 5, with the Center providing a comment of support.
Environment and climate resilience
MONITOR LB 1026 (Sen. Storm): Updates current state law to limit when public power utilities can retire, shut down, or significantly alter electric generation facilities while customers are waiting for service. This bill may reduce public power’s authority and operational flexibility, increase costs for customer owners (ratepayers) by keeping aging facilities online, interfere with long-term resource planning, and discourage prompt transitions to renewable energy technologies. A Natural Resources Committee hearing was held on Feb. 5 and further action has not yet been scheduled.
Take action
- Submit an online comment of support for LB 1167 and LB 1205, which secures ongoing funding for the Microenterprise Assistance Program. More than 70% of Nebraska businesses have 10 or fewer employees, and rural entrepreneurs are able to thrive and create jobs through this program.
- Track legislation that affects rural communities by following priority bills and staying informed throughout the session at cfra.org/policy/bill-tracker. We continue to add important legislation impacting rural communities to the tracker and keep it up-to-date.
- If you see a bill that matters to you or your community, but missed the hearing date, you can still email committee members to encourage them to support the legislation.
- Not sure where to start? Email [email protected] or call 402.902.0953.
Bill introduction period concludes and public hearings begin
Jan. 30, 2026
The 2026 Nebraska Legislative session is in full swing. During the bill introduction period, which ended Jan. 21, 545 bills, 12 constitutional amendments, and four legislative resolutions were introduced. Every new bill that is introduced receives a public hearing in one of 14 standing committees—each committee consists of 7 to 9 senators. Visit this link to find information about standing committees.
Public hearings began last week and will be held through the end of February. As public hearings wrap up, legislative committees will soon vote on which bills advance to the full Legislature for debate. In the coming weeks, senators will also designate priority bills.
As members of the “second house,” residents of Nebraska are an important part of the public hearing process. Every comment submitted and every testimony offered becomes part of the official legislative record and helps senators understand how proposed legislation will impact communities across Nebraska.
Small Businesses
The Business Innovation Act (BIA) supports entrepreneurs and small businesses across Nebraska. Through the BIA, the Microenterprise Assistance Program provides loans and coaching businesses employing 10 or fewer people, which represent 70% of businesses in the state. Securing funding for the program will ensure continued aid for the state’s small businesses. The Center supports the following legislation impacting this program:
LB 1015 - Establishes a cash fund source to support a long-term funding level of $15 million for the Business Innovation Act annually. LB 1015 was heard in the Business and Labor Committee on Jan. 26, with the Center providing supportive testimony.
LB 1044 - Reinforces legislative intent to fund BIA at $15 million per year. This bill acts as a “stop gap” by funding the Business Innovation Act for FY 2026-2027. LB 1044 will be heard by the Banking, Commerce, and Insurance Committee on Feb. 2.
LB 1167 - Ensures $3 million in funding to the Microenterprise Assistance Program for the current fiscal year. LB 1167 will be heard before the Appropriations Committee on Feb. 12.
LB 1205 - Requires appropriations of up to $3 million annually for microenterprise programming in the future. LB 1205 will be heard before the Banking, Insurance, and Commerce Committee on Feb. 10.
Community Resources
LB 304 - Eliminates the child care subsidy date for the federal Child Care Subsidy Program. The Center supports LB 304 as it maintains child care affordability. LB 304 is a carryover bill and has been prioritized by Sen. DeBoer.
LB 1067 - Proposes a moderate increase to the documentary stamp tax to increase funding for the Middle-Income Workforce Housing Fund and the Rural Workforce Housing Fund. LB 1167 was heard in the Revenue Committee on Jan. 29, with the Center providing supportive testimony. LB 1067 ensures stable, predictable funding for two crucial housing programs that support workforce stability and community growth.
Take action
- Submit a comment of support for LB 1044, which provides minimum funding for the BIA program as a whole, LB 1167, which funds the microenterprise program for the current year, and LB 1205, which ensures future funding for the microenterprise program. Not sure where to start? Email [email protected] or call 402.902.0953.
- Track legislation that affects rural communities by following priority bills and staying informed throughout the session at cfra.org/policy/bill-tracker.
- If you see a bill that matters to you or your community, but missed the hearing date, you can still email committee members to encourage them to support the legislation.
Early legislative priorities for rural Nebraska
Jan. 16, 2026
The Nebraska Unicameral began its 60-day session on Jan. 7 amid a projected $471 million budget shortfall, with lawmakers weighing new proposals alongside bills carried over from 2025.
Early in the session, Sen. Dan McKeon resigned, averting what could have been the Legislature’s first-ever expulsion.
Senators have already introduced over 300 bills addressing issues that matter to rural communities, including Rural Workforce Housing funding, health care and child care access, SNAP and Medicaid requirements, and other public concerns. Bill introductions continue through Jan. 21.
Our early priorities
- Monitoring several bills (including LB 1015 and LB 1044) that affect the Business Innovation Act (BIA). The Center is working to ensure that the BIA, including the Microenterprise Assistance Program, remains fully funded.
- Supporting LB 768, which would allow more flexibility for the Rural Workforce Housing trust fund.
- Supporting LB 304, a bill to eliminate the sunset date for child care subsidies.
- Continuing to seek legislative avenues to support rural grocery stores, such as the Grocer Reinvestment Option Act (LB 375), which was introduced last session and remains viable.
Take action
- Track legislation that affects rural communities by following priority bills and staying informed throughout the session with our bill tracker.
- Contact your state senator and share your rural perspective by calling, emailing, or writing to let them know how proposed bills impact your community.
- Participate in public hearings or submit written testimony at the Nebraska Capitol or online on issues that matter most to you. Don’t know where to start? Email [email protected] or call 402.902.0953.
