This bill changes how Nebraska calculates state aid for cities and towns. It requires the Department of Revenue to use each municipality's prior year's certified property tax levy data (separating bond and nonbond taxes) to determine aid amounts. Municipalities with tax levies below the state average face a 20% aid reduction for each cent below the average, up to 80% total reduction. The calculation uses population and property tax averages, and if the aid fund is insufficient, money is allocated proportionally to all cities.
LB 304 removes the expiration date (sunset) for Nebraska's participation in the federal Child Care Subsidy program, making the program permanent beyond its current September 30, 2026, deadline. It directly affects low-income families with children who qualify for child care assistance based on income thresholds (up to 185% of the federal poverty level before October 1, 2026, or 130% after). The bill maintains existing eligibility rules, including transitional assistance for families exceeding income limits, and ensures funding comes from federal Child Care Development Block Grant funds rather than state general funds. It does not change income levels or subsidy structures but extends the program's duration indefinitely.
LB 417 establishes the Nebraska Promise Program, providing tuition waivers for eligible Nebraska residents attending University of Nebraska campuses or Nebraska College of Technical Agriculture. It covers up to 15 credit hours per semester after federal grants and scholarships are applied, targeting students with family incomes under $65,000 annually and requiring a 2.5 GPA. The bill also extends similar tuition waivers to community colleges (up to 2 years) and state colleges (up to 4 years) for qualifying low-income students. Funding for these waivers comes from a new College Promise Fund, with reimbursements distributed monthly from the General Fund to institutions after annual certification. The program requires institutions to verify eligibility and maintain a standardized appeals process through the Coordinating Commission for Postsecondary Education.
This bill would eliminate Nebraska's sales tax exemption for candy and soft drinks, requiring these items to be taxed starting October 1, 2025. Currently, candy (defined as sugar-based products without flour or refrigeration needs) and soft drinks (nonalcoholic sweetened beverages excluding milk-based or juice-heavy drinks) are exempt under state tax law, but this bill would remove them from the list of exempt items. The change would directly affect consumers purchasing these products and retailers selling them, as they would now pay the standard sales tax. This policy shift aligns with efforts to broaden the tax base for non-essential items.
This bill (LB 316A) appropriates $441,686 for fiscal year 2025-26 and $84,798 for 2026-27 from the state General Fund to the Department of Revenue. These funds are specifically designated to support the implementation of Legislative Bill 316 (which is not detailed in this text) under Program 102. The bill also sets annual limits on salary and per diem expenses using these funds, capping them at $41,300 for 2025-26 and $42,700 for 2026-27. It directly affects the Department of Revenue’s budget for carrying out LB 316’s provisions.
Nebraska's LB 316 establishes new rules for hemp-derived products, specifically targeting cannabidiol (CBD) products. It defines CBD products as those containing cannabidiol as a primary ingredient with strict THC limits (max 0.3% dry weight or 10mg per package), prohibits non-compliant hemp products, and imposes a 10% retail excise tax on CBD sales starting January 1, 2026. The bill also creates a "consumer safe harbor period" through December 31, 2025, during which individuals won't face prosecution for possessing non-compliant hemp products if they surrender them for destruction. These changes directly affect CBD retailers (requiring tax collection and recordkeeping) and consumers (via the safe harbor provision).
Nebraska's LB 766 updates regulations for racetracks and horseracing wagering. It sets new annual requirements: racetracks operating before April 2022 must host at least 5 live racing days and 50 races yearly through 2030 (increasing to 15 days and 120 races annually after 2030), while newer tracks have phased-in minimums. The bill eliminates the Compulsive Gamblers Assistance Fund, moves the Nebraska Commission on Problem Gambling under the State Racing and Gaming Commission, and allows keno players as young as 18 at racetracks (previously 21). It also revises how wagering revenue is distributed and repeals outdated sections of gaming law. The bill directly affects racetrack licensees, problem gamblers seeking services, and state gaming regulatory bodies.
Nebraska's LB 264 moves specific state funds into the General Fund to support broader state operations. The bill requires transferring $8.25 million from the State Insurance Fund, $25.5 million from the Military Installation Fund, and over $32 million from the Water Recreation Fund, among other specified amounts, by mid-2025 or 2026. These transfers affect state financial accounts, redirecting money from specialized funds like recreation, economic development, and medical spending programs. The bill also eliminates several programs and outdated provisions, but its primary action is reallocating existing state funds.
LB 647 creates two new tax programs and modifies multiple tax codes. It establishes a property tax exemption for landowners who grant permanent public access rights for recreational trails (like walking or biking paths), provided the easement connects to existing trails and is held by eligible entities like cities or accredited nonprofits. It also creates a 10% refundable state tax credit for Nebraska taxpayers who qualify for the federal adoption credit, effective for 2026 tax years. The bill further updates property tax calculation rules, municipal tax provisions, school district relief funding, and education savings plan eligibility without creating new major programs.
This bill appropriates $1 million from the Medicaid Managed Care Excess Profit Fund for each of fiscal years 2025-26 and 2026-27 to the Nebraska Department of Health and Human Services. The funds are specifically designated for Program 33 to support the implementation of Legislative Bill 48 (which establishes Medicaid managed care reforms). The appropriation includes a $60,000 annual cap on salary and per diem expenses for the program. The bill becomes effective September 1, 2025, and directly affects Medicaid program administration.
