LB 1209

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                    LEGISLATIVE BILL 1209
                    Approved by the Governor April 16, 2026
Introduced by Clements, 2.
A BILL FOR AN ACT relating to appropriations; to amend Laws 2025, LB261,
     section 88; Laws 2025, LB261, sections 69, 100, 164, 246, 279, 280, 285,
     and 300, as amended by sections 59, 75, 99, 119, 125, 126, 127, and 128,
     respectively, Legislative Bill 1071, One Hundred Ninth Legislature, Second
     Session, 2026; and section 81, Legislative Bill 1072, One Hundred Ninth
     Legislature, Second Session, 2026; to define terms; to provide and change
     appropriations for purposes of carrying out legislation enacted by the One
     Hundred Ninth Legislature, Second Session, 2026; to change provisions
     relating to appropriations and a transfer of funds; to repeal the original
     sections; and to declare an emergency.
Be it enacted by the people of the State of Nebraska,
     Section 1. DEFINITION OF APPROPRIATION PERIOD.
     For purposes of this act and any other legislative bill passed by the One
Hundred Ninth Legislature, First or Second Session, which appropriates funds,
FY2025-26 means the period July 1, 2025, through June 30, 2026; FY2026-27 means
the period July 1, 2026, through June 30, 2027; FY2027-28 means the period July
1, 2027, through June 30, 2028; and FY2028-29 means the period July 1, 2028,
through June 30, 2029.
     Sec. 2. APPROPRIATION LANGUAGE.
     There are hereby appropriated, for FY2025-26 and FY2026-27, the sums set
forth in this act to each agency for each program from the respective funds for
the general operations of state government, postsecondary education, and state
aid, except as otherwise appropriated.
     Sec. 3. UNEXPENDED BALANCES AND CERTIFIED ENCUMBRANCES.
     All General Fund appropriations existing on June 30, 2025, in excess of
expended and certified encumbrance amounts are hereby lapsed unless otherwise
provided. All Cash Fund and Revolving Fund appropriations existing on June 30,
2025, in excess of expended and certified encumbrance amounts are hereby lapsed
unless otherwise expressly provided. All certified encumbrance amounts on June
30, 2025, and June 30, 2026, are hereby reappropriated for FY2025-26 and
FY2026-27, respectively, which amounts shall be in addition to the amounts
shown in this act.
     Sec. 4. REAPPROPRIATION OF BALANCE, FY2025-26 to FY2026-27.
     In addition to the appropriations set forth in this act, there are hereby
reappropriated all unexpended appropriation balances existing on June 30, 2026,
for FY2026-27, to the respective agencies, programs, and funds listed in this
act, except as otherwise provided in this act.
     Sec. 5.   There are hereby reappropriated for each agency, program, and
fund for FY2025-26 and FY2026-27, any appropriation by the One Hundred Seventh
Legislature, First or Second Session, of the unexpended and unencumbered
appropriation balances of the Federal Funds allocated to the State of Nebraska
from the federal Coronavirus State Fiscal Recovery Fund pursuant to the federal
American Rescue Plan Act of 2021, 42 U.S.C. 802, as amended, unless otherwise
indicated in this act and any other legislative bill passed by the One Hundred
Eighth Legislature, First or Second Session. Such reappropriation shall retain
any provided limitations established by the appropriating legislative bill
unless otherwise indicated within this act and any other legislative bill
passed by the One Hundred Eighth Legislature, First or Second Session.
     Sec. 6. NEBRASKA ACCOUNTING SYSTEM MANUAL DEFINITIONS.
     The definitions contained in the Nebraska Accounting System Manual, and
any amendments thereto, on file with the Clerk of the Legislature, are hereby
adopted by the Legislature as the definitions for this act, except as provided
in section 7 of this act.
     Sec. 7. LIMITATION ON SALARIES, WAGES, AND PER DIEMS.
     (1) For purposes of this act, (a) SALARY LIMIT shall mean total
expenditures for permanent and temporary salaries and per diems and (b) total
expenditures for permanent and temporary salaries and per diems shall mean all
remuneration paid to employees treated as taxable compensation by the Internal
Revenue Service or subject to social security coverage, specifically including
payments accounted for as vacation, holidays, sick leave, military leave,
funeral leave, maternity leave, administrative leave, compensatory time,
deferred compensation, or any other similar form, and amounts withheld pursuant
to law, but excluding state contributions for social security, retirement, and
employee insurance plans.
     (2) Total expenditures for permanent and temporary salaries and per diems
shall be limited to the amount shown except when federal funds in excess of the
amount shown are available and approved by the Governor. Expenditures for
permanent and temporary salaries and per diems from such grants shall be in
addition to the limitation on permanent and temporary salaries and per diems
otherwise shown in this act. No agency shall request any state funds for
continuation or replacement of any such personnel or activities in future
budget requests. To the extent feasible, requests for increases in the
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limitation on permanent and temporary salaries and per diems shall be addressed
to the Appropriations Committee of the Legislature when the Legislature is in
session.
     (3) Expenditures for permanent and temporary salaries resulting from
awards made to employees under sections 81-1346 to 81-1354 shall be in addition
to the limitations on permanent and temporary salaries and per diems otherwise
shown in this act.
     (4) The limitation on expenditures for permanent and temporary salaries
and per diems for FY2026-27 as enumerated in this act shall be the basis for
continuation funding for each fiscal year of the succeeding biennium.
     (5) The limitation on expenditures for permanent and temporary salaries
and per diems for FY2025-26 shall be increased by certified encumbrance amounts
from FY2024-25 for permanent and temporary salaries and per diems. The
limitation on expenditures for permanent and temporary salaries and per diems
for FY2026-27 shall be increased by certified encumbrance amounts from
FY2025-26 for permanent and temporary salaries and per diems. Encumbered
amounts shall be calculated in accordance with section 81-138.01.
     (6) The limitation on expenditures for permanent and temporary salaries
and per diems shall only apply to remuneration paid to state employees or per
diem payments made to members of state boards or commissions.
     (7) The budget administrator of the budget division of the Department of
Administrative Services may administratively increase the limitation on
expenditures for permanent and temporary salaries and per diems upon receipt of
a request for such increase from the director of a state agency certifying the
actual amount of the payment to a former employee of such agency, or such
employee's beneficiary upon the death of the employee, of accumulated vacation
and sick leave pursuant to section 81-1325 and the rules and regulations of the
State Personnel System governing such payments.
     Sec. 8. DRAWING AND PAYING WARRANTS.
     The Director of Administrative Services shall draw warrants upon the
proper fund in the state treasury for an amount not to exceed the
appropriations set forth in this act upon presentation of proper documentation.
The State Treasurer shall pay the warrants out of the appropriate funds.
     Sec. 9. AGENCY NO. 23 — DEPARTMENT OF LABOR
     Program No. 31 - Division of Employment
                                             FY2025-26  FY2026-27
CASH FUND  -0-  6,500,000
PROGRAM TOTAL  -0-  6,500,000
     There is included in the appropriation to this program for FY2025-26 $-0-
Cash Funds for state aid for workforce development, which shall only be used
for such purpose. There is included in the appropriation to this program for
FY2026-27 $4,000,000 Cash Funds for state aid for workforce development, which
shall only be used for such purpose.
     Sec. 10. AGENCY NO. 25 — DEPARTMENT OF HEALTH AND HUMAN SERVICES
     Program No. 38 - Behavioral Health Aid
                                             FY2025-26  FY2026-27
CASH FUND  -0-  470,000
PROGRAM TOTAL  -0-  470,000
     There is included in the appropriation to this program for FY2025-26 $-0-
Cash Funds for state aid, which shall only be used for such purpose. There is
included in the appropriation to this program for FY2026-27 $470,000 Cash Funds
for state aid, which shall only be used for such purpose.
     Sec. 11. AGENCY NO. 64 — NEBRASKA STATE PATROL
     Program No. 100 - Public Protection
                                             FY2025-26  FY2026-27
GENERAL FUND  -0-  113,706
CASH FUND  -0-  85,500
PROGRAM TOTAL  -0-  199,206
SALARY LIMIT  -0-  76,889
     Sec. 12. AGENCY NO. 85 — PUBLIC EMPLOYEES RETIREMENT BOARD
     Program No. 41 - Administration of Retirement Systems        and   Deferred
Compensation
                                             FY2025-26  FY2026-27
CASH FUND  -0-  7,500
PROGRAM TOTAL  -0-  7,500
    Sec. 13. Laws 2025, LB261, section 88, is amended to read:
    Sec. 88. AGENCY NO. 23 — DEPARTMENT OF LABOR
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    Program No. 194 - Division for Protection of People and Property
                                             FY2025-26  FY2026-27
GENERAL FUND  764,157  -0-
GENERAL FUND  764,157  779,383
CASH FUND  687,811  1,709,750
CASH FUND  687,811  709,750
FEDERAL FUND est.  822,851  828,634
PROGRAM TOTAL  2,274,819  2,538,384
PROGRAM TOTAL  2,274,819  2,317,767
SALARY LIMIT  1,315,258  1,346,619
     Sec. 14.    Laws 2025, LB261, section 69, as amended by section 59,
Legislative Bill 1071, One Hundred Ninth Legislature, Second Session, 2026, is
amended to read:
     Sec. 69. AGENCY NO. 16 — DEPARTMENT OF REVENUE
     Program No. 102 - Revenue Administration
                                             FY2025-26  FY2026-27
GENERAL FUND  17,399,357  595,791
GENERAL FUND  17,399,357  2,467,209
CASH FUND  14,453,216  33,277,467
CASH FUND  14,453,216  29,946,547
PROGRAM TOTAL  31,852,573  33,873,258
PROGRAM TOTAL  31,852,573  32,413,756
SALARY LIMIT  19,868,885  20,584,467
SALARY LIMIT  19,868,885  20,278,967
     There is included in the appropriation to this program for FY2025-26
$336,404 Cash Funds for staff necessary to audit and enforce provisions of the
tobacco Master Settlement Agreement from the Nebraska Health Care Cash Fund.
There is included in the appropriation to this program for FY2026-27 $336,404
Cash Funds for staff necessary to audit and enforce provisions of the tobacco
Master Settlement Agreement from the Nebraska Health Care Cash Fund.
     Sec. 15.    Laws 2025, LB261, section 100, as amended by section 75,
Legislative Bill 1071, One Hundred Ninth Legislature, Second Session, 2026, is
amended to read:
     Sec. 100. AGENCY NO. 25 — DEPARTMENT OF HEALTH AND HUMAN SERVICES
     Program No. 348 - Medical Assistance
                                             FY2025-26  FY2026-27
GENERAL FUND  1,085,315,619  843,522,688
GENERAL FUND  1,085,315,619  850,284,005
CASH FUND  740,239,274  728,739,274
FEDERAL FUND est.  3,928,839,289  3,614,112,414
FEDERAL FUND est.  3,928,839,289  3,622,224,210
PROGRAM TOTAL  5,754,394,182  5,186,374,376
PROGRAM TOTAL  5,754,394,182  5,201,247,489
     The Department of Administrative Services shall monitor the appropriations
and expenditures for this program according to the following program
classifications:
     No. 348 - Medical Assistance
     No. 349 - Medicaid Expansion Aid
     There is included in the appropriation to this program for FY2025-26
$1,085,315,619 General Funds, $740,239,274 Cash Funds, and $3,928,839,289
Federal Funds estimate for state aid, which shall only be used for such
purpose. There is included in the appropriation to this program for FY2026-27
$843,522,688 $850,284,005 General Funds, $728,739,274 Cash Funds, and
$3,614,112,414 $3,622,224,210 Federal Funds estimate for state aid, which shall
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only be used for such purpose.
     It is the intent of the Legislature that the total amount appropriated for
medicaid nursing facility rates for Program No. 348, specified as $449,351,518
for FY2025-26 ($196,186,873 General Funds and $253,164,645 Federal Funds) and
$449,351,518 for FY2026-27 ($199,467,139 General Funds and $249,884,379 Federal
Funds), shall be used in the medicaid nursing facility rate calculation for
Program No. 348, including the calculation of the annual inflation factor.
     The total amount appropriated for medicaid nursing facility rates for
Program No. 348 includes amounts for rate enhancement and any other purpose
related to medicaid nursing facility services. The Department of Health and
Human Services shall file a report electronically with the Legislative Fiscal
Analyst and the Clerk of the Legislature no later than August 1, 2025, on how
the inflation factor was calculated for FY2025-26 rates and no later than June
15 August 1, 2026, on how the inflation factor was calculated for FY2026-27
rates.
     The Department of Health and Human Services shall file a report
electronically with the Legislative Fiscal Analyst and the Clerk of the
Legislature between December 15 and December 31 of each year of the biennium
ending June 30, 2027, identifying the amount of any unspent remaining
appropriation from the prior fiscal year's appropriations earmarked for nursing
facility payments. The report shall include an identification of encumbrances
and retroactive payments.
     There is included in the amount shown as aid for this program $1,500,000
Cash Funds for FY2025-26 from the Hospital Quality Assurance and Access
Assessment Fund to the Department of Health and Human Services for the medical
assistance program to provide reimbursement to mental health providers who do
not practice in a hospital and who provide services to medicaid-eligible
participants who are eligible for both medicaid and medicare, if there is a
lower rate paid under medicare compared to rates paid at the time for medicaid
rates for behavioral health services. It is the intent of the Legislature to
sustain the medicaid rates for mental health providers serving medicaid-
eligible participants who are eligible for both medicaid and medicare and are
receiving behavioral health services under Program No. 348, Medical Assistance.
     There is included in the amount shown as aid for this program $1,408,364
Cash Funds for FY2025-26 and $1,408,364 Cash Funds for FY2026-27 from the
Medicaid Managed Care Excess Profit Fund for medicaid assisted-living facility
rates for Program No. 348, to be used specifically by the Department of Health
and Human Services to increase the current medicaid assisted-living facility
rates, which are included in Program No. 348 and paid as a service as part of
Nebraska's aged and disabled home and community-based medicaid 1915(c) waiver
program, to the daily rate of $73.91 for FY2025-26 and $73.91 for FY2026-27,
for both rural and urban assisted-living single occupancy waiver days.
     It is the intent of the Legislature that phased-down state contributions
to the federal government as defined and required by the federal Medicare
Prescription Drug, Improvement, and Modernization Act of 2003 may be made from
appropriations to this program.
     The chief executive officer of the Department of Health and Human Services
may certify to the budget administrator of the budget division of the
Department of Administrative Services FY2025-26 and FY2026-27 unexpended
appropriation balances for Medical Assistance, Program No. 348, available to
transfer to Developmental Disability Aid, Program No. 424, to be used only to
maintain individuals with an intellectual or developmental disability in a
medicaid program that best serves their needs at a cost that does not exceed
the cost of services provided in an institution. The budget administrator of
the budget division of the Department of Administrative Services shall
administratively   transfer    during   FY2025-26   and   FY2026-27    available
appropriations as certified by the chief executive officer of the Department of
Health and Human Services from Medical Assistance, Program No. 348, to
Developmental Disability Aid, Program No. 424.
     Sec. 16.    Laws 2025, LB261, section 164, as amended by section 99,
Legislative Bill 1071, One Hundred Ninth Legislature, Second Session, 2026, is
amended to read:
     Sec. 164. AGENCY NO. 35 — NEBRASKA LIQUOR CONTROL COMMISSION
     Program No. 73 - Licensing and Regulation
                                              FY2025-26  FY2026-27
GENERAL FUND  2,885,293  2,714,207
GENERAL FUND  2,885,293  3,014,207
CASH FUND  600,000  400,000
CASH FUND  600,000  100,000
PROGRAM TOTAL  3,485,293  3,114,207
SALARY LIMIT  1,275,475  1,412,975
     The Department of Administrative Services shall monitor the appropriations
and expenditures for this program according to the following program
classifications:
     No. 073 - Licensing and Regulation
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     No. 096 - Medical Cannabis
     Sec. 17.    Laws 2025, LB261, section 246, as amended by section 119,
Legislative Bill 1071, One Hundred Ninth Legislature, Second Session, 2026, is
amended to read:
     Sec. 246. AGENCY NO. 72 — DEPARTMENT OF ECONOMIC DEVELOPMENT
     Program No. 603 - Industrial Recruitment
                                             FY2025-26  FY2026-27
GENERAL FUND  18,060,554  6,195,537
GENERAL FUND  18,060,554  18,147,087
CASH FUND  86,019,625  72,525,784
CASH FUND  86,019,625  57,525,784
FEDERAL FUND est.  21,183,754  21,188,298
PROGRAM TOTAL  125,263,933  99,909,619
PROGRAM TOTAL  125,263,933  96,861,169
SALARY LIMIT  5,864,322  5,994,488
     The unexpended Cash Fund appropriation balance for unexpended obligations
existing on June 30, 2025, for the Site and Building Development Act, is hereby
reappropriated.
     The Department of Administrative Services shall monitor the appropriations
and expenditures for this program according to the following program
classifications:
     No. 603 – Industrial Recruitment
     No. 604 – Business Incentives
     There is included in the appropriation to this program for FY2025-26
$11,020,352 General Funds, $84,839,197 Cash Funds, and $20,737,571 Federal
Funds estimate for state aid, which shall only be used for such purpose. There
is included in the appropriation to this program for FY2026-27 $-0- $11,020,352
General Funds, $70,239,197 $56,339,197 Cash Funds, and $20,737,571 Federal
Funds estimate for state aid, which shall only be used for such purpose.
     It is the intent of the Legislature to appropriate an additional
$4,500,000 Cash Funds from the Site and Building Development Fund in FY2027-28
pursuant to subdivision (1)(h) of section 81-12,147.
     There is included in the amount shown as aid for FY2025-26 $50,000,000
Cash Funds from the Nebraska Transformational Project Fund as state aid, which
shall only be used for such purpose. There is included in the amount shown as
aid for FY2026-27 $50,000,000 Cash Funds from the Nebraska Transformational
Project Fund as state aid, which shall only be used for such purpose.
     There is included in the amount shown as aid for FY2025-26 $4,000,000 Cash
Funds and for FY2026-27 $-0- Cash Funds from the ImagiNE Nebraska Revolving
Loan Fund for state aid, which shall only be used for such purpose.
     Sec. 18.    Laws 2025, LB261, section 279, as amended by section 125,
Legislative Bill 1071, One Hundred Ninth Legislature, Second Session, 2026, is
amended to read:
     Sec. 279. AGENCY NO. 84 — DEPARTMENT OF WATER, ENERGY, AND ENVIRONMENT
     Program No. 334 - Soil and Water Conservation
                                              FY2025-26  FY2026-27
GENERAL FUND  9,645,854  9,755,854
GENERAL FUND  9,645,854  10,170,854
CASH FUND  9,573,272  10,029,357
CASH FUND  9,573,272  9,614,357
FEDERAL FUND est.  2,207,789  2,273,709
PROGRAM TOTAL  21,426,915  22,058,920
SALARY LIMIT  8,201,870  8,223,188
     There is hereby reappropriated an amount certified by the Department of
Water, Energy, and Environment to the budget administrator of the budget
division of the Department of Administrative Services of the unexpended General
Fund and Cash Fund appropriation balances appropriated to the Department of
Natural Resources for this program existing on June 30, 2025, that are
allocated in budget subprograms 19, 20, 21, and 24 of Program 334.
Reappropriated funds shall be allocated to the same budget subprogram.
     There is included in the appropriation to this program for FY2025-26
$7,450,000 Cash Funds plus any reappropriated amounts and $5,000 Federal Funds
estimate, for state aid, which shall only be used for such purpose. There is
included in the appropriation to this program for FY2026-27 $7,450,000 Cash
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Funds plus any reappropriated amounts and $5,000 Federal Funds estimate, for
state aid, which shall only be used for such purpose.
     There is included in the amount shown as state aid for FY2026-27, $353,000
Cash Funds for the removal of riparian vegetation as part of a vegetation
management program, if such vegetation management program is being conducted
for the primary objective of improving the conveyance of streamflow in natural
streams.
     The unexpended Cash Fund appropriation balance appropriated to the
Department of Natural Resources for this program existing on June 30, 2025, is
hereby reappropriated to the Department of Water, Energy, and Environment for
this program.
     Sec. 19.    Laws 2025, LB261, section 280, as amended by section 126,
Legislative Bill 1071, One Hundred Ninth Legislature, Second Session, 2026, is
amended to read:
     Sec. 280. AGENCY NO. 84 — DEPARTMENT OF WATER, ENERGY, AND ENVIRONMENT
     Program No. 513 - Environmental Quality
                                             FY2025-26  FY2026-27
GENERAL FUND  5,250,060  5,025,060
GENERAL FUND  5,250,060  5,250,060
CASH FUND  42,816,431  43,233,267
CASH FUND  42,816,431  43,115,996
FEDERAL FUND est.  45,798,301  46,175,320
PROGRAM TOTAL  93,864,792  94,433,647
PROGRAM TOTAL  93,864,792  94,541,376
SALARY LIMIT  18,561,743  18,956,247
     The Department of Administrative Services shall monitor the appropriations
and expenditures for this program according to the following program
classifications:
     No. 513 - Administration
     No. 586 - Water Quality
     No. 587 - Land Quality
     No. 588 - Air Quality
     There is included in the appropriation to this program for FY2025-26
$18,645,601 Cash Funds and $24,538,513 Federal Funds estimate for state aid,
which shall only be used for such purpose. There is included in the
appropriation to this program for FY2026-27 $18,645,601 Cash Funds and
$24,529,499 Federal Funds estimate for state aid, which shall only be used for
such purpose.
     There is included in the amount shown for FY2026-27 $38,000,000 Federal
Funds for the purpose of awarding a grant to a city of the first class which
operates a publicly owned wastewater treatment facility that is subject to a
National Pollutant Discharge Elimination System permit and that has experienced
documented increases in industrial wastewater load resulting in treatment
capacity or compliance challenges due to a calcium caseinate food ingredient
manufacturing facility. The Federal Funds in this section are from the funds
awarded to the State of Nebraska from the Inflation Reduction Act of 2022, 42
U.S.C. 7437, as amended. Such grant award shall be contingent upon receipt of a
one-to-one match certified by the department.
     The unexpended Cash Fund appropriation balance appropriated to the
Department of Environment and Energy for this program existing on June 30,
2025, up to $6,000,000, is hereby reappropriated for providing grants to
metropolitan utilities districts for lead service line replacements in
accordance with section 71-5328.
     Sec. 20.    Laws 2025, LB261, section 285, as amended by section 127,
Legislative Bill 1071, One Hundred Ninth Legislature, Second Session, 2026, is
amended to read:
     Sec. 285. AGENCY NO. 85 — PUBLIC EMPLOYEES RETIREMENT BOARD
     Program No. 515 - Public Employees Retirement
                                             FY2025-26  FY2026-27
GENERAL FUND  36,444,018  20,998,604
GENERAL FUND  36,444,018  22,219,812
PROGRAM TOTAL  36,444,018  20,998,604
PROGRAM TOTAL  36,444,018  22,219,812
     There is included in the appropriation to this program for FY2025-26
$17,541,637 General Funds to provide additional funding to the School Employees
Retirement System of the State of Nebraska, which shall only be used for such
purpose. There is included in the appropriation to this program for FY2026-27
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$-0- General Funds to provide additional funding to the School Employees
Retirement System of the State of Nebraska, which shall only be used for such
purpose.
     There is included in the appropriation to this program for FY2025-26
$10,607,612 General Funds to provide additional funding to the Omaha School
Employees Retirement System, which shall only be used for such purpose. There
is included in the appropriation to this program for FY2026-27 $11,581,992
General Funds to provide additional funding to the Omaha School Employees
Retirement System, which shall only be used for such purpose.
     There is included in the appropriation to this program for FY2025-26
$6,834,870 General Funds to provide additional funding to the Nebraska State
Patrol Retirement System, which shall only be used for such purpose. There is
included in the appropriation to this program for FY2026-27 $9,416,612 General
Funds to provide additional funding to the Nebraska State Patrol Retirement
System, which shall only be used for such purpose.
     There is included in the appropriation to this program for FY2025-26
$1,459,899 General Funds to provide additional funding to the Nebraska Judges
Retirement System, which shall only be used for such purpose. There is included
in the appropriation to this program for FY2026-27 $-0- $1,221,208 General
Funds to provide additional funding to the Nebraska Judges Retirement System,
which shall only be used for such purpose.
     Pursuant to section 84-1319.01, each state agency participating in the
State Employees Retirement System of the State of Nebraska shall contribute an
amount to the State Equal Retirement Benefit Fund to provide all similarly
situated male and female members with equal benefits. It is the intent of the
Legislature that the Public Employees Retirement Board notify each state agency
of the amount to be paid to the fund for FY2025-26 and FY2026-27.
     Sec. 21.    Laws 2025, LB261, section 300, as amended by section 128,
Legislative Bill 1071, One Hundred Ninth Legislature, Second Session, 2026, is
amended to read:
     Sec. 300. CASH FUNDS.
     The receipts for FY2025-26 and FY2026-27 inuring to the several Cash
Funds, together with any amounts held in account by the State Treasurer on June
30, 2025, are hereby credited to each of the funds respectively.
     Expenditure of Cash Funds appropriated in this act shall be limited to the
amount shown by program except when specific exceptions are made. The amounts
appropriated in this act include the following funds:
     (1) Legislative Council: Nebraska Legislative Shared Information System
Cash Fund, Donations/Contributions Cash Fund, Nebraska Statutes Cash Fund,
Clerk of the Legislature Cash Fund, Biotechnology Development Cash Fund,
Nebraska Health Care Cash Fund;
     (2) Supreme Court: Supreme Court Reports Cash Fund, Court Appointed
Special Advocate Fund, Nebraska Statutes Distribution Cash Fund, Supreme Court
Attorney Services Cash Fund, Probation Program Cash Fund, Probation Cash Fund,
State Probation Contractual Services Cash Fund, Dispute Resolution Cash Fund,
Counsel for Discipline Cash Fund, Supreme Court Education Fund, Supreme Court
Automation Cash Fund, Parenting Act Fund, Public Guardianship Cash Fund,
Administrative Office of the Courts Cash Fund, Bar Commission Cash Fund;
     (3) Governor: Governor's Policy Research Cash Fund;
     (4) Secretary of State: Records Management Cash Fund, Secretary of State
Cash Fund, Election Administration Fund;
     (5) Auditor of Public Accounts: Auditor of Public Accounts Cash Fund;
     (6) Attorney General: Motor Vehicle Fraud Cash Fund, Department of Justice
Natural Resources Enforcement Fund, State Settlement Cash Fund, Nebraska Health
Care Cash Fund, State Medicaid Fraud Control Unit Cash Fund, Financial Fraud
Victims' Reimbursement Fund;
     (7) State Treasurer: State Treasurer Administrative Fund, Unclaimed
Property Cash Fund, Mutual Finance Assistance Fund, Education Savings Plan
Administrative Fund, Education Savings Plan Expense Fund, Convention Center
Support Fund, State Disbursement Unit Cash Fund, Treasury Management Cash Fund,
Sports Arena Facility Support Fund, Political Subdivision Recapture Cash Fund,
Inland Port Authority Fund, College Savings Incentive Cash Fund, Medical Debt
Relief Fund, Give to Enable Support Cash Fund;
     (8) State Department of Education: State Department of Education Cash
Fund, Certification Fund, Tuition Recovery Cash Fund, Private Postsecondary
Career Schools Cash Fund, Early Childhood Education Endowment Cash Fund,
Nebraska Education Improvement Fund, High School Equivalency Grant Fund,
Expanded Learning Opportunity Grant Fund, Education Future Fund, Behavioral
Training Cash Fund, Mental Health Training Cash Fund, College Pathway Program
Cash Fund, School Safety and Security Fund, Computer Science and Technology
Education Fund, State Department of Education Improvement Grant Fund, School
Emergency Response Mapping Fund;
     (9) Public Service Commission: Nebraska Grain Warehouse Surveillance Cash
Fund, Nebraska Telecommunications Relay System Fund, Public Service Commission
Housing and Recreational Vehicle Cash Fund, Nebraska Telecommunications
Universal Service Fund, Moisture Testing Examination Fund, Grain Warehouse
Auditing Fund, Municipal Rate Negotiations Revolving Loan Fund, Public Service
Commission Pipeline Regulation Fund, 911 Service System Fund, Transportation
Network Company Regulation Cash Fund, 211 Cash Fund;
     (10) Department of Revenue: Department of Revenue Enforcement Fund, State
Lottery Operation Cash Fund, Marijuana and Controlled Substances Tax
Administration Cash Fund, Waste Reduction and Recycling Incentive Fees
Collection Fund, Petroleum Release Remedial Action Collection Fund, Litter Fee
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Collection Fund, Severance Tax Administration Fund, Charitable Gaming
Operations Fund, Tobacco Products Administration Cash Fund, Nebraska Incentives
Fund, Motor Fuel Tax Enforcement and Collection Cash Fund, Nebraska Health Care
Cash Fund, State Athletic Commissioner's Cash Fund, Department of Revenue
Property Assessment Division Cash Fund, Property Tax Credit Cash Fund, Nebraska
Advantage Transformational Tourism and Redevelopment Act Cash Fund, Airline and
Carline Cash Fund, Compulsive Gamblers Assistance Fund, School District
Property Tax Relief Credit Fund;
     (11) Department of Agriculture: Fertilizers and Soil Conditioners
Administrative Fund, Commercial Feed Administration Cash Fund, Pure Milk Cash
Fund, Soil and Plant Analysis Laboratory Cash Fund, Livestock Auction Market
Fund, Nebraska Potato Development Fund, Weights and Measures Administrative
Fund, Nebraska Poultry and Egg Development, Utilization, and Marketing Fund,
Agricultural Products Marketing Information Cash Fund, Pure Food Cash Fund,
Nebraska Agricultural Products Marketing Cash Fund, State Apiary Cash Fund,
Weed Book Cash Fund, Pesticide Administrative Cash Fund, Nebraska Seed
Administrative Cash Fund, Plant Protection and Plant Pest Cash Fund, Tractor
Permit Cash Fund, Animal Damage Control Cash Fund, Noxious Weed Cash Fund,
Buffer Strip Incentive Fund, Winery and Grape Producers Promotional Fund,
Commercial Dog and Cat Operator Inspection Program Cash Fund, Domesticated
Cervine Animal Cash Fund, Agricultural Laboratory Testing Services Cash Fund,
Agricultural Suppliers Lease Protection Cash Fund, Nebraska Beer Industry
Promotional Fund, Animal Health and Disease Control Act Cash Fund;
     (12) Department of Banking and Finance: Financial Institution Assessment
Cash Fund, Securities Act Cash Fund, Department of Banking and Finance
Settlement Cash Fund;
     (13) State Fire Marshal: Nebraska Natural Gas Pipeline Safety Cash Fund,
State Fire Marshal Cash Fund, Underground Storage Tank Fund, Training Division
Cash Fund, Reduced Cigarette Ignition Propensity Fund, Boiler Inspection Cash
Fund, Mechanical Safety Inspection Fund;
     (14) Department of Insurance: Department of Insurance Cash Fund;
     (15) Department of Labor: Employment Security Special Contingent Fund,
Contractor, Business, and Professional Employer Organization Registration Cash
Fund,   Workforce   Development   Program   Cash   Fund,   Employment  Security
Administration Fund;
     (16) Department of Motor Vehicles: Motor Carrier Division Cash Fund,
Department of Motor Vehicles Cash Fund, Department of Motor Vehicles Ignition
Interlock Fund, License Plate Cash Fund, Vehicle Title and Registration System
Replacement and Maintenance Cash Fund, Operator's License Services System
Replacement and Maintenance Fund, Highway Tax Fund, Motor Carrier Services
System Replacement and Maintenance Fund;
     (17) Department of Health and Human Services: Health and Human Services
Cash Fund, School District Reimbursement Fund, Nebraska Child Abuse Prevention
Fund, Nebraska Health Care Cash Fund, University of Nebraska Medical Center
Medical Education Revolving Fund, Behavioral Health Services Fund, Professional
and Occupational Credentialing Cash Fund, Rural Health Professional Incentive
Fund, Organ and Tissue Donor Awareness and Education Fund, Prescription Drug
Monitoring Program Fund, ICF/DD Reimbursement Protection Fund, Nebraska
Emergency Medical System Operations Fund, Radiation Transportation Emergency
Response Cash Fund, Nursing Facility Quality Assurance Fund, Health Care Homes
for the Medically Underserved Fund, Nursing Faculty Student Loan Cash Fund,
Nursing Facility Penalty Cash Fund, Homeless Shelter Assistance Trust Fund,
Patient Safety Cash Fund, Medicaid Managed Care Excess Profit Fund, HCBS
Enhanced FMAP Fund, Opioid Treatment Infrastructure Cash Fund, Opioid
Prevention and Treatment Cash Fund, Hospital Quality Assurance and Access
Assessment Fund, Medicaid Access and Quality Fund, Domestic Violence and Sex
Trafficking Survivor Housing Assistance Fund, 988 Emergency Lifeline Cash Fund;
     (18) Department of Transportation: Highway Cash Fund, Grade Crossing
Protection Fund, State Recreation Road Fund, Roads Operations Cash Fund, State
Highway Capital Improvement Fund, Transportation Infrastructure Bank Fund,
Aeronautics Cash Fund, Department of Transportation Aeronautics Capital
Improvement Fund;
     (19) Department of Veterans' Affairs: Veteran Cemetery Construction Fund,
Nebraska Veteran Cemetery System Operation Fund, Department of Veterans'
Affairs Cash Fund, Veterans' Home Building Fund, Pets for Vets Cash Fund,
Veterans Employment Program Fund, Military Installation Development and Support
Fund;
     (20) State Electrical Board: Electrical Division Fund;
     (21) Military Department: Military Department Cash Fund, Governor's
Emergency Cash Fund, Nebraska Emergency Management Agency Cash Fund, Nebraska
Emergency Planning and Community Right to Know Cash Fund;
     (22) Board of Educational Lands and Funds: Surveyors' Cash Fund, Board of
Educational Lands and Funds Cash Fund, Survey Record Repository Fund;
     (23) Game and Parks Commission: State Game Fund, State Park Cash Revolving
Fund, Nebraska Habitat Fund, Nebraska Aquatic Habitat Fund, Nebraska Snowmobile
Trail Cash Fund, Nebraska Outdoor Recreation Development Cash Fund, Wildlife
Conservation Fund, Nebraska Environmental Trust Fund, Cowboy Trail Fund, Game
Law Investigation Cash Fund, Niobrara Council Fund, Nebraska Environmental
Endowment Fund, Hunters Helping the Hungry Cash Fund, Game and Parks Commission
Capital Maintenance Fund, Game and Parks State Park Improvement and Maintenance
Fund, Game and Parks Commission Educational Fund, Josh the Otter-Be Safe Around
Water Cash Fund, Trail Development and Maintenance Fund, Water Recreation
Enhancement Fund, Museum Construction and Maintenance Fund;
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     (24) Nebraska Library Commission: Nebraska Library Commission Cash Fund;
     (25) Nebraska Liquor Control Commission: Nebraska Liquor Control
Commission Rule and Regulation Cash Fund, Nebraska Medical Cannabis Commission
Cash Fund;
     (26) State Racing and Gaming Commission: Track Distribution Fund,
Racetrack Gaming Fund;
     (27) Nebraska Workers' Compensation Court: Compensation Court Cash Fund;
     (28) Nebraska Brand Committee: Nebraska Brand Inspection and Theft
Prevention Fund;
     (29) Nebraska Motor Vehicle Industry Licensing Board: Nebraska Motor
Vehicle Industry Licensing Fund;
     (30) State Real Estate Commission: State Real Estate Commission's Fund;
     (31) Board of Barber Examiners: Board of Barber Examiners Fund;
     (32) Department of Correctional Services: Department of Correctional
Services Facility Cash Fund, Reentry Cash Fund, Vocational and Life Skills
Programming Fund, Prison Overcrowding Contingency Fund, Parole Program Cash
Fund, Correctional Services Insurance Proceeds Fund;
     (33) Nebraska Educational Telecommunications Commission: State Educational
Telecommunications Fund;
     (34) Coordinating Commission for Postsecondary Education: Coordinating
Commission for Postsecondary Education Cash Fund, Nebraska Opportunity Grant
Fund, Guaranty Recovery Cash Fund, Excellence in Teaching Cash Fund, Door to
College Scholarship Fund, Community College Gap Assistance Program Fund;
     (35) Nebraska State Colleges: Chadron Cash Fund, Peru Cash Fund, Wayne
Cash Fund, CSC Capital Projects Cash Fund, PSC Capital Projects Cash Fund,
Wayne Cash Fund--Capital Projects, Special Projects Cash Fund, Board of
Trustees Cash Fund, State Colleges Sport Facilities Cash Fund;
     (36) University of Nebraska: Financial Literacy Cash Fund, University Cash
Fund, Temporary University Fund, University of Nebraska at Omaha Cash Fund,
University of Nebraska Medical Center Cash Fund, University of Nebraska at
Kearney Cash Fund, University of Nebraska Central Administration Designated
Cash Fund, University of Nebraska-Lincoln Designated Cash Fund, University of
Nebraska at Omaha Designated Cash Fund, University of Nebraska Medical Center
Designated Cash Fund, University of Nebraska at Kearney Designated Cash Fund,
State Anatomical Board Cash Fund;
     (37) Nebraska State Fair Board: Nebraska State Fair Support and
Improvement Cash Fund;
     (38) Real Property Appraiser Board: Real Property Appraiser Fund,
Appraisal Management Company Fund;
     (39) Nebraska State Historical Society: Historical Society Fund,
Historical   Landmark  Cash   Fund,  Nebraska   Job   Creation  and  Mainstreet
Revitalization Fund, Willa Cather National Statuary Hall Cash Fund, Willa
Cather Historical Building Cash Fund, Semiquincentennial Commission Fund;
     (40) Nebraska Wheat Development, Utilization, and Marketing Board:
Nebraska Wheat Development, Utilization, and Marketing Fund;
     (41) Nebraska Oil and Gas Conservation Commission: Oil and Gas
Conservation Fund, Carbon Dioxide Storage Facility Administrative Fund;
     (42) Board of Engineers and Architects: Engineers and Architects
Regulation Fund;
     (43) Board of Geologists: Geologists Regulation Fund;
     (44) Nebraska Ethanol Board: Agricultural Alcohol Fuel Tax Fund, Ethanol
Production Incentive Cash Fund;
     (45) Nebraska Dairy Industry Development Board: Nebraska Dairy Industry
Development Fund;
     (46) State Board of Examiners for Land Surveyors: Land Surveyor Examiner's
Fund;
     (47) Nebraska State Board of Public Accountancy: Certified Public
Accountants Fund;
     (48) Nebraska State Patrol: Nebraska State Patrol Cash Fund, Investigation
Petty Cash Fund, Carrier Enforcement Cash Fund, Nebraska State Patrol Drug
Control and Education Cash Fund, Public Safety Cash Fund, Nebraska State Patrol
Vehicle Replacement Cash Fund, Nebraska Public Safety Communication System Cash
Fund, Combined Law Enforcement Information Network Cash Fund, State DNA Sample
and Data Base Fund, Treasury Agency Forfeitures Cash Fund;
     (49) Department of Administrative Services: Building Renewal Allocation
Fund, State Building Renewal Assessment Fund, University Building Renewal
Assessment Fund, State College Building Renewal Assessment Fund, Capitol
Restoration Cash Fund, Vacant Building and Excess Land Cash Fund, Resource
Recovery Fund, Tort Claims Fund, Information Technology Infrastructure Fund,
Health and Life Benefit Administration Cash Fund, Rural Broadband Task Force
Fund, Community College State Dependents Fund, Ferguson House Fund;
     (50) Abstracters Board of Examiners: Abstracters Board of Examiners Cash
Fund;
     (51) Commission on Latino-Americans: Hispanic Awareness Cash Fund,
Commission on Latino-Americans Cash Fund;
     (52) Nebraska Arts Council: Nebraska Arts Council Cash Fund, Nebraska Arts
and Humanities Cash Fund, Support the Arts Cash Fund;
     (53) Foster Care Review Office: Foster Care Review Office Cash Fund,
Nebraska Health Care Cash Fund;
     (54) Department of Economic Development: Job Training Cash Fund,
Administrative Cash Fund, Affordable Housing Trust Fund, Civic and Community
Center Financing Fund, Rural Workforce Housing Investment Fund, Bioscience
Innovation Cash Fund, Nebraska Film Office Fund, Customized Job Training Cash
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Fund, ImagiNE Nebraska Cash Fund, Middle Income Workforce Housing Investment
Fund, ImagiNE Nebraska Revolving Loan Fund, Nebraska Transformational Project
Fund, Site and Building Development Fund, Economic Recovery Contingency Fund,
Innovation Hub Cash Fund, Nebraska Rural Projects Fund, Shovel-Ready Capital
Recovery and Investment Fund, Panhandle Improvement Project Cash Fund, Youth
Outdoor Education Innovation Fund;
     (55) State Board of Landscape Architects: State Board of Landscape
Architects Cash Fund;
     (56) Nebraska Power Review Board: Nebraska Power Review Fund;
     (57) Nebraska Investment Council: State Investment Officer's Cash Fund;
     (58) Nebraska Commission on Law Enforcement and Criminal Justice: Nebraska
Law Enforcement Training Center Cash Fund, Law Enforcement Improvement Fund,
Victim's Compensation Fund, Community Corrections Uniform Data Analysis Cash
Fund, Violence Prevention Cash Fund;
     (59) Commission for the Blind and Visually Impaired: Commission for the
Blind and Visually Impaired Cash Fund;
     (60) Commission for the Deaf and Hard of Hearing: Commission for the Deaf
and Hard of Hearing Fund;
     (61) Community College Aid: Nebraska Community College Aid Cash Fund,
Community College Future Fund;
     (62) Department of Water, Energy, and Environment: Integrated Solid Waste
Management   Cash   Fund,   Nebraska   Litter   Reduction   and   Recycling   Fund,
Environmental Cash Fund, Chemigation Costs Fund, Low-Level Radioactive Waste
Cash Fund, Petroleum Release Remedial Action Cash Fund, Wastewater Treatment
Operator Certification Cash Fund, Local Site Selection Cash Fund, Local
Monitoring Committee Cash Fund, Waste Reduction and Recycling Incentive Fund,
Wastewater Treatment Facilities Construction Loan Fund, Remedial Action Plan
Monitoring Fund, Livestock Waste Management Cash Fund, Drinking Water
Administration Fund, Clean Air Title V Cash Fund, Air Quality Permit Cash Fund,
Superfund Cost Share Cash Fund, Private Onsite Wastewater Treatment System
Certification and Registration Cash Fund, Solid Waste Landfill Closure
Assistance Fund, Private Onsite Wastewater Treatment System Permit and Approval
Cash Fund, State Energy Cash Fund, Clean-burning Motor Fuel Development Fund,
Volkswagen   Settlement   Cash   Fund,   Renewable   Fuel   Infrastructure    Fund,
Engineering Plan Review Cash Fund, Environmental Safety Cash Fund, Nebraska
Environmental Response Cash Fund, Water Well Standards and Contractors'
Licensing Fund, Safe Drinking Water Act Cash Fund, Dredge and Fill Cash Fund,
Lead Service Line Cash Fund, Water Resources Cash Fund, Small Watersheds Flood
Control Fund, Nebraska Resources Development Fund, Nebraska Soil and Water
Conservation   Fund,   Natural   Resources   Water   Quality   Fund,   Water   Well
Decommissioning Fund, Water Resources Trust Fund, Department of Water, Energy,
and Environment Cash Fund, Water Sustainability Fund, Critical Infrastructure
Facilities Cash Fund, Dam Safety Cash Fund, Perkins County Canal Project Fund,
Jobs and Economic Development Initiative Fund, Surface Water Irrigation
Infrastructure Fund, Battery Stewardship Cash Fund, Revitalize Rural Nebraska
Fund;
     (63) Public Employees Retirement Board: School Expense Fund, Judges
Expense Fund, State Patrol Expense Fund, Deferred Compensation Expense Fund,
State Employees Retirement System Expense Fund, County Employees Retirement
System Expense Fund, State Cash Balance Expense Fund, County Cash Balance
Expense Fund, Class V School Employees Retirement System Management Work Plan
Fund;
     (64) Dry Bean Commission: Dry Bean Development, Utilization, Promotion,
and Education Fund;
     (65)   Nebraska   Accountability    and   Disclosure   Commission:    Nebraska
Accountability and Disclosure Commission Cash Fund;
     (66) Corn Development, Utilization, and Marketing Board: Nebraska Corn
Development, Utilization, and Marketing Fund;
     (67) Commission on Indian Affairs: Commission on Indian Affairs Cash Fund,
Chief Standing Bear National Statuary Hall Cash Fund, Native American
Scholarship and Leadership Fund;
     (68) Nebraska Tourism Commission: State Visitors Promotion Cash Fund,
Tourism Conference Cash Fund, Nebraska Tourism Commission Promotional Cash
Fund;
     (69) Grain Sorghum Development, Utilization, and Marketing Board: Grain
Sorghum Development, Utilization, and Marketing Fund, Grain Sorghum National
Checkoff Fund;
     (70) Tax Equalization and Review Commission: Tax Equalization and Review
Commission Cash Fund;
     (71) Commission on Public Advocacy: Legal Education for Public Service and
Rural Practice Loan Repayment Assistance Fund, Commission on Public Advocacy
Operations Cash Fund, Legal Aid and Services Fund, Civil Legal Services Fund;
     (72) Dry Pea and Lentil Commission: Dry Pea and Lentil Fund; and
     (73) Commission on African American Affairs: Commission on African
American Affairs Cash Fund.
     Sec. 22.      Section 81, Legislative Bill 1072, One Hundred Ninth
Legislature, Second Session, 2026, is amended to read:
     Sec. 81. The State Treasurer shall transfer $45,000,000 $50,000,000 from
the Nebraska Tobacco Settlement Trust Fund to the General Fund on or after July
1, 2026, but before June 30, 2027, on such dates and in such amounts as
directed by the budget administrator of the budget division of the Department
of Administrative Services.
     Sec. 23.     Original Laws 2025, LB261, section 88; Laws 2025, LB261,
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sections 69, 100, 164, 246, 279, 280, 285, and 300, as amended by sections 59,
75, 99, 119, 125, 126, 127, and 128, respectively, Legislative Bill 1071, One
Hundred Ninth Legislature, Second Session, 2026; and section 81, Legislative
Bill 1072, One Hundred Ninth Legislature, Second Session, 2026, are repealed.
     Sec. 24. Since an emergency exists, this act takes effect when passed and
approved according to law.
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