May 16, 2025

Nebraska lawmakers approve $11 billion budget package, close projected deficit

Posted May 16, 2025 11:52 AM

LINCOLN, Neb. (AP) — Nebraska lawmakers gave final approval Thursday to a $11 billion, two-year state budget package that closes a projected $260 million deficit and modestly increases state spending.

The budget package, crafted by the Legislature’s Appropriations Committee, represents a 0.9% increase in state expenditures over the next two fiscal years. Lawmakers passed six key components of the budget, including the mainline budget bill, LB261, on a 37-11 vote.

LB261 includes several provisions rolled into the bill from other legislation. Among them:

  1. LB55, which provides $1.5 million to the Department of Health and Human Services for mental health provider reimbursements.
  2. LB173, which allocates $5 million annually to support dual enrollment programs at community colleges.
  3. LB505, appropriating $10 million in federal Temporary Assistance for Needy Families (TANF) funds for food assistance grants.
  4. LB580, reappropriating funds for lead service line replacement grants.
  5. LB581, which provides $500,000 for construction costs at a nonprofit health care facility.

Lawmakers also passed LB264 on a 35-13 vote. The bill authorizes fund transfers, including $216 million from state agency cash funds and $147 million from the state’s Cash Reserve Fund. It leaves roughly $684 million in the so-called “rainy day fund.”

Gov. Jim Pillen praised lawmakers for approving what he called a historically conservative and balanced budget.

“This budget puts money toward education, property tax relief, and elimination of the developmental disability waitlist,” Pillen said in a statement. “It also bolsters our national nuclear security, all while closing the $432 million deficit reported in November.”

Pillen said he would review the package for possible line-item vetoes to trim additional spending.