Capitol Updates

Friday, January 9, 2026

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Session Kicks Off Amid Major Budget Shortfall

The 109th Nebraska Legislature, 2nd Regular Session convened on Wednesday, Jan. 7, marking the start of a constitutionally required 60-day session that will move quickly and conclude in mid-April. As with the last short session, the early days have focused on organization, bill introduction, and setting the tone for what is expected to be a compressed and intense legislative calendar. For educators and public schools, the combination of limited time and significant fiscal constraints will shape nearly every policy discussion this year. 

Lawmakers face an estimated $470+ million state budget shortfall, driven by declines in income tax collections and reduced federal funding. During the interim, Gov. Jim Pillen directed state agencies to prepare for 10% budget reductions. His State of the State address, scheduled for Jan. 15, will outline proposed budget adjustments, after which the Appropriations Committee will begin detailed agency-by-agency reviews. In a short session, budget debates will move swiftly, and proposals with a fiscal impact—including those affecting K-12 education—will face heightened scrutiny. 

The opening week of session has also included an unprecedented and serious matter unrelated to education policy but impactful to the institution itself. A resolution to expel Sen. Dan McKeon for violations of the Legislature’s sexual harassment policy was introduced on the first day of session and will be taken up early next week. Legislative leadership has emphasized the importance of resolving this issue promptly so the body can focus on the people’s business, including the state budget and critical public policy decisions. 

Despite these challenges, senators have already begun introducing legislation. As in past short sessions, bills not passed in 2025 carry over automatically, and hundreds of new bills are expected before the introduction deadline on Jan. 21. Importantly, all new bills are guaranteed a public hearing, giving educators an opportunity to weigh in early. The first day of public hearings on newly introduced bills is scheduled for Tuesday, Jan. 20. 

Looking ahead, several issues of importance to educators are expected to resurface. The NSEA Government Relations team will continue advocating for paid family and medical leave for teachers, a policy that stalled in 2025 but remains a key recruitment and retention tool—particularly as most districts realize savings from recent changes to retirement contributions. Addressing the ongoing teacher shortage will also be front and center, including continued discussions around pathways to certification that maintain professional standards while expanding the pipeline into the classroom. 

Funding for public education will remain a dominant concern throughout the session. Nebraska teachers continue to earn significantly less than the national average and trail neighboring states, complicating recruitment and retention efforts at a time when student needs are increasing. With limited resources available, NSEA will closely monitor budget proposals to protect state aid to schools and oppose any efforts that further strain classrooms through diversion of public dollars or spending restrictions. 

Public dollars for private schools are also expected to continue as a legislative issue. Although voters overwhelmingly repealed a state-level private school voucher program in 2024, Nebraska’s participation in a new federal tax-credit-based voucher initiative raises renewed concerns about accountability, transparency, and the long-term impact on public school funding. NSEA remains committed to defending strong, well-funded public schools that serve all students. 

As the session moves forward, engagement from educators will be critical. As mentioned, public hearings begin Jan. 20, and testimony—both in person and in writing—plays a vital role in shaping legislative outcomes, especially in a short session where decisions are made quickly. NSEA will continue to provide updates, alerts, and opportunities for involvement as lawmakers debate policies that directly affect Nebraska’s students, educators, and public schools. 

Review of Education Related Carryover Bills

LB258 (Raybould) Change provisions relating to the minimum wage under the Wage and Hour Act 

NSEA Position: Oppose 

LB468 (Clements) Change provisions relating to inheritance taxes 

NSEA Position: Monitor 

LB170 (Brandt) Eliminate the sales tax exemptions for candy and soft drinks 

NSEA Position: Monitor 

LB653 Change provisions to reimbursement for special educ programs (LB303, 430, 497, 507, 625) 

NSEA Position: Neutral 

LB156 (Conrad) Allow tort claims for sexual assaults of children in school settings 

NSEA Position: Monitor 

LB440 (Spivey) Adopt the Education Leave and Support Act 

NSEA Position: Support 

LB538 (Hardin) Require educational institutions adopt policy on discrimination and antisemitism 

NSEA Position: Neutral 

LR12CA (Kauth) Constitutional amendment to impose a limit on ad valorem taxes for real property 

NSEA Position: Oppose 

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