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LINCOLN — Lawmakers will return to the Capitol this week for what promises to be a fast-paced and consequential 2026 Nebraska legislative session, one shaped by a crowded agenda, a looming budget shortfall and a long list of unresolved policy debates.
The session, which began today (Wednesday, Jan. 7), is the Legislature’s 60-day “short session,” meaning senators will have limited time to tackle both new proposals and hundreds of bills carried over from last year. Those time constraints, combined with fiscal pressure and election-year politics, are expected to make for an intense stretch of lawmaking through mid-April.
Because Nebraska operates on a two-year legislative cycle, the 715 bills introduced in 2025 remain alive unless they were passed or indefinitely postponed. Lawmakers approved 205 bills last year, leaving hundreds still in play.
Senators may also introduce new legislation during the first 10 legislative days, pushing the total number of bills under consideration well beyond 1,000 once the introduction window closes Jan. 21. Floor debate is expected to begin early on carryover measures, including 59 bills on General File, eight on Select File and five on Final Reading.
Balancing the budget will be a central focus. Although the two-year state budget was adopted in 2025, lawmakers must make adjustments in 2026 to address an estimated $471 million shortfall. State law requires a balanced budget, forcing senators to reconcile lower-than-expected tax receipts, the effects of recently enacted income tax cuts, increased property tax credits, higher education funding costs and other spending pressures.
Gov. Jim Pillen has said the shortfall will not deter him from seeking an additional $500 million in budget cuts. Under the state constitution, the governor must release his budget proposal by Jan. 15. That plan will serve as the starting point for Appropriations Committee hearings and public testimony before a revised version reaches the floor.
New revenue options are also likely to be debated. Pillen has signaled continued interest in broadening or increasing the state sales tax base as a way to ease property tax burdens. Lawmakers may be asked to shape a broader property tax package alongside any revenue proposals. There are some bright spots: Nebraska’s cash reserve fund remains strong, casino tax revenues continue to grow, and the state was recently awarded $218 million annually for the next five years in rural health funding through the federal One Big Beautiful Bill.
Several major policy issues from 2025 are expected to resurface. Medical cannabis legislation stalled last year despite voter approval of a ballot initiative, and renewed scrutiny of the Medical Cannabis Commission’s slow rollout could bring the issue back to the forefront. A sweeping tort reform package, including caps on noneconomic damages and a shorter statute of limitations for accidents involving commercial motor vehicles, awaits debate on General File. Lawmakers may also revisit a bill to cap annual minimum wage increases at 1.5 percent after it fell short on Final Reading last session.
Natural resources and energy policy is another area to watch. Senators have raised concerns about Nebraska’s long-term electricity generation capacity, healthy soils initiatives and nitrate management in water. Funding for the Perkins County Canal project could face renewed scrutiny amid budget pressures, and there is ongoing discussion about imposing property tax asking caps on political subdivisions.
Health care issues are expected to consume significant committee time. Lawmakers will examine how federal changes affect Medicaid, while pharmacy benefit manager reform is again expected to be debated. Carryover bills include proposals related to medical scope of practice, licensing certified nurse midwives and abortion.
New measures could address vaccine schedules, fluoride in community water systems and access to medical care for transgender individuals. Some senators have also signaled interest in “Make America Healthy Again”-style legislation.
Education policy remains another active front. Senators are expected to debate stricter school spending caps, changes to levy rates tied to property tax relief and proposals affecting early-grade reading instruction.
Bills addressing student behavior in elementary classrooms are also anticipated, along with budget discussions involving higher education.
Beyond policy, the session is likely to feature internal and political flashpoints. The Legislature’s Executive Board has recommended expelling a senator accused of groping a staff member. Lawmakers may also debate committee assignments, possible consolidation of standing committees and enhanced security measures at the Capitol.
