January 7, 2026 — February 20, 2026
Prepared by L. James Wright
Nebraska Unicameral still faces budget challenges as it moves to priority bills
The Legislature continues advancing bills through committee hearings and floor debate. During each session, 
each senator may designate a personal priority bill. Additionally, each standing committee may designate two committee priority bills, and the Speaker may designate an additional 25 speaker priority bills. The deadline to officially request a speaker priority designation was Tuesday, February 17. The final day for senators to select their personal priority bills is Thursday, February 19. These selections will largely dictate floor debate for the remainder of the session.
Nebraska lawmakers received encouraging short-term revenue news as January state tax collections came in $37 million above projections, offering some modest relief as they continue grappling with a significant state budget shortfall. Stronger-than-expected individual income and sales tax receipts largely drove the surplus, though officials cautioned that monthly fluctuations do not resolve the broader structural imbalance facing the state budget.
Despite the positive January numbers, legislative leaders still face a substantial budget deficit for the upcoming biennium, entering the session projected $471.5 million in the red. Lawmakers are weighing a mix of spending reductions, agency cost controls, and possible revenue adjustments as they work to craft a balanced budget. The updated revenue figures will factor into ongoing budget deliberations in the Legislature’s Appropriations Committee, where members continue evaluating agency requests and the governor’s proposed budget adjustments.
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