The Nebraska legislature adjourned on Monday, June 2nd, one day early, on the 89th day of its session. This session the legislature dealt with numerous important issues including technology and child safety, agriculture, as well as the state's biennium budget. The unicameral legislature passed 204 bills, 27 of which were supplemental appropriations bills. Of those 204 bills two of them were vetoed by Governor Jim Pillen (R), LB 319 and LB 287. This year began the first year of Nebraska's legislative biennium meaning all bills introduced this session that were not passed by the legislature are still eligible for consideration once the legislature reconvenes for the 2026 regular session.
Education and Technology
This session several bills dealing with the use of the internet and technology by kids were signed into law. Following a trend across the country, the Nebraska legislature passed LB 140, which requires schools to enact policies restricting the use of cell phones during the school day. Similar bills were signed this year in nineteen states including Arizona, Colorado, and Texas. Other bills signed into law this session include LB 383, which requires minors to have parental consent in order to create a social media account and establishes criminal penalties for AI-generated child pornography. LB 504, signed into law on May 30th by Governor Pillen, requires online services to protect user data and to establish age-appropriate design code standards to mitigate certain harms to minors including bullying, sexual exploitation, and compulsive usage. Similar laws have been enacted in California, Maryland, and Vermont.
Agriculture and Land Use
One of Governor Jim Pillen's top priority issues going into the 2025 legislative session was protecting and supporting Nebraska farmers. In his State of the State Address, the Governor expressed his desire to "protect both our consumers and our agricultural producers" by "beef[ing] up consumer protections." To that end, LB 246 was signed into law by Governor Pillen this session. The measure prohibits the manufacturing, distribution, or sale of cultivated-protein food products in Nebraska. Another bill passed by the legislature this session was LB 7, which restricts foreign corporations from holding or operating leases for oil, gas, or other hydrocarbon substances. LB 246 and LB 7 are both set to take effect on September 2nd, 2025.
Budget and Taxes
This session, lawmakers approved the state's FY2026-2027 biennium budget, which appropriates funds to support policy priorities, including broadband, property tax relief, healthcare, and education. According to Governor Pillen the budget will close the state's "$432 million deficit." One point of controversy in this year's budget process was the issue of line-item vetoes. Governor Pillen announced his intent to line-item veto $14.5 million in general fund appropriations. However, according to the legislature, the vetoed legislation was not filed by the midnight deadline on May 21st. To avoid a potential constitutional dispute the Governor was forced to withdraw his budget line-item vetoes.
Beyond the Governor's line-item veto issue, the legislature passed several other important tax measures. The legislature passed LB 526, which establishes requirements for cryptocurrency mining operations, including permitting a public power district to impose an excise tax on cryptocurrency mining operations to pay for the cost of significant infrastructure upgrades necessitated by such operations. Additionally, on May 6th, Governor Pillen signed into law LB 650, which eliminates the sales tax exemption on the gross income received for the lease of telecommunication towers and agricultural global positioning system locating services. The measure also eliminates or adjusts sales tax exemptions for various other tax incentives.
Looking Forward
As the legislature looks to the 2026 session budget challenges remain top of mind. Following this sessions budget incident the Governor indicated that "budget adjustment measures next session will be a priority." Additionally, changes to funding at the federal level may impact budget adjustments made next session.