This bill updates funding allocations for Nebraska state agencies for the 2026 fiscal year, specifically adjusting appropriations for the Department of Labor and the Department of Economic Development. It increases budget amounts for workforce development programs, employment services, and business incentive initiatives while maintaining designated funding sources for each purpose. The legislation amends previous appropriation laws to reflect these financial changes and includes provisions for reappropriating any unspent funds from the prior fiscal year.
Nebraska's LB 1156 creates a tax credit program to encourage private investment in economically distressed communities. It allows taxpayers to claim a 50% nonrefundable income tax credit for cash contributions to qualifying organizations (like community development banks or innovation hubs) that fund projects in designated distressed areas. These funds support affordable commercial space, workforce training, site preparation, and small developer projects, with annual limits of $26.5 million for tax credits and $20 million for supplemental grants. The program targets small developers and underrepresented businesses in neighborhoods facing high unemployment and poverty, aiming to expand local economic opportunities without direct public funding.
LB 1141 creates the Nebraska Youth Pre-Apprentice Conservation Program to employ opportunity youth (ages 16-21 who face trauma, legal issues, or school challenges) on conservation projects under the Game and Parks Commission. The program provides six-week, minimum-wage jobs focused on environmental work, combining job training with personal development, while excluding participants from state employee benefits. It establishes a dedicated fund using a $750,000 transfer from the Workforce Development Program Cash Fund and requires the Commission to report annually on participation and project impact. The program aims to support youth development and conservation efforts through structured, short-term employment.
LB 94 adopts the Digital Skills Empowerment Act to expand digital skills training in Nebraska's underserved communities. It directly affects residents in qualified census tracts (including North Omaha) and returning prisoners by providing grants for training centers ($20M/year) and covering costs like tuition and childcare for low-income individuals ($20M/year). The bill establishes standardized curricula, partnerships with tech companies, and paid apprenticeships ($10M/year) to develop job skills in fields like web development and cybersecurity. Key provisions require training centers to offer virtual/in-person options and ensure industry-aligned programs to increase local employment opportunities.
LB 164, the Urban Development Incentive Act, creates a state grant program to support small and emerging developers in economically distressed areas of Nebraska. The bill provides funding for affordable commercial space development, rehabilitation, and sustainability features, with grants covering up to 20% of project costs (max $3.5 million per project) and specific categories for financing help, job training, and green building certification. It directly affects small developers (under 50 employees, <$5M revenue) working in areas meeting federal census criteria for high unemployment (≥150% state average) and poverty (≥20%). The program requires community engagement documentation and annual reporting to the Legislature on grant usage and job creation.
LB 265 establishes a pilot program providing one-time grants to eligible Nebraska manufacturers for technology upgrades that increase productivity. It directly affects manufacturers meeting specific criteria (e.g., operating 3+ years, generating 51% revenue from goods, employing 3+ full-time staff) who must match grant funds 1:1 with private investment. The program allocates up to $250,000 from the Workforce Development Fund, capping individual grants at $50,000 for projects like job training or specialized equipment. The bill also transfers related funding, adjusts unemployment tax rates, and eliminates the Nebraska Worker Training Board.
LB 45 creates a five-year pilot grant program through Nebraska's Department of Labor to fund job training and employment opportunities for historically underserved youth (ages 18 or younger experiencing homelessness, poverty, foster care, or juvenile justice involvement). Eligible organizations must be headquartered in designated high-need census tracts and commit to hiring these youth for training in high-demand fields like IT, healthcare, and skilled trades. The program will launch in specific urban and rural communities for pilot evaluation before potential statewide expansion, with grants prioritized for areas with the highest poverty and unemployment rates. The Department of Labor will report annually on program effectiveness and placement rates in target fields.
LB 447 amends Nebraska's Community Development Law to require specific wage standards and apprentice utilization for certain redevelopment contracts. It directly affects community redevelopment authorities and developers working on projects in designated "blighted" or "enhanced employment" areas. The bill mandates that contracts for these projects must include provisions for paying prevailing wages and using apprentices in construction roles. These requirements apply to redevelopment contracts entered into under the Community Development Law, impacting how such projects are structured and implemented. The changes focus on ensuring fair compensation and workforce development within approved redevelopment initiatives.
LB 537 establishes the Workforce Development Program Cash Fund to support job training grants in Nebraska. It requires the Department of Labor to award grants evenly across the state’s three congressional districts, with funds used for job skills, money management, and job placement services. Applicants must provide private matching funds equal to the grant amount, and recipients must report on job placements and progress toward self-sufficiency for participants. The bill specifies $1.5 million in funding from the General Fund for fiscal year 2025-26 to support these grants.
