The Nebraska Unicameral has wrapped up the second session of the 109th Legislature—and it was a busy one for the state budget. Lawmakers passed mid-biennium budget adjustments (LB 1071 and LB 1072) after extended negotiations to address a projected $646 million shortfall. The final package includes spending reductions, fund transfers, and other adjustments, such as a $50 million reduction from the Tobacco Settlement Fund and a $304 million draw from the Cash Reserve Fund over the biennium. To close the remaining $38 million gap, lawmakers advanced additional revenue and cost-saving proposals estimated to generate $44 million, which could leave a modest surplus. Governor Jim Pillen signed the budget bills with no line-item vetoes.
NCUL was engaged early in the process to keep credit union priorities moving in LB 717. Key provisions include: (1) clarifying that credit unions are included in the definition of “financial institution” for purposes of digital assets and stablecoins; (2) updating the annual credit union wild card/parity provision (Section 25), which impacts Nebraska’s 10 state-chartered credit unions; and (3) increasing the usury-rate exemption principal-balance cap from $25,000 to $100,000 (Section 26).
Member protection remained a major focus this session. NCUL-supported legislation advanced in LB 838, strengthening protections for elders and vulnerable adults by allowing financial institutions to designate an authorized contact when there’s an emergency, a loss of customer contact, or suspected financial exploitation. LB 838 also incorporated LB 1118 (social media advertising verification and take-down processes to help deter fraud) and LB 837 (optional rounding of cash transactions to the nearest nickel).
Overall, four out of five legislative bills supported by the Fraud Free Nebraska Coalition passed this year.
Additional NCUL-supported fraud measures also moved forward in LB 965 (a Judiciary Committee priority). The bill was amended to include LB 785, which expands the burglary-tools statute to cover unauthorized possession or use of keys/locks for mail receptacles (including U.S. Postal Service and commercial carrier boxes). Violations would be a Class IV felony—an important step in addressing organized mail theft tied to identity theft and financial fraud.
Housing priorities supported by NCUL advanced as well. The Legislature passed LB 803 (which includes the First-Time Home Buyer Savings Account Act) and LB 1067, which establishes ongoing funding for the Rural Workforce Housing and Middle-Income Workforce Housing programs. LB 1067 does this by increasing the documentary stamp tax by $1 per $1,000, with the new revenue split evenly between the two funds.
Finally, NCUL secured an amendment to LB 882—included in the passage of LB 1001—to protect credit union participation in the Save to Win program.
