24 NEBRASKA CATTLEMAN June/July 2026 109TH LEGISLATIVE SESSION RECAP Changes at Impact Nebraska’s Cattle Producers MATTHEW MELCHOR | NC DIRECTOR OF STATE GOVERNMENT AFFAIRS When Nebraska senators adjourned the legislative session on April 17, they had logged all 60 days of a short session that felt anything but short. Budget fights stalled progress, leading to the latest approved budget in state history. Here’s a breakdown of what happened and what it means for your operation. Balancing this biennium’s state budget took top priority this session. Heading into January, Nebraska faced a projected deficit of $471.5 million for the current biennium. Then in February, the Nebraska Economic Forecasting Advisory Board lowered revenue projections by another $175 million, pushing the total fiscal challenge to roughly $646 million. The main budget adjustment bill, LB1071, sponsored by Speaker John Arch (La Vista) at Gov. Pillen’s request, hit a wall not once, but twice. Two failed cloture votes left the session in limbo as senators fought over two unrelated provisions: a $3.65 million “gap year” funding mechanism for private school scholarships and a proposed permanent expansion of the Child Care Subsidy program. Neither side would budge, and neither provision could attract enough votes to clear the chamber. On March 30, day 54, both LB1071 and its companion fund transfer bill, LB1072, passed on a 35-13 vote. Lawmakers had to suspend the rules to bypass a requirement that the budget pass by day 50. The passed budget trimmed the projected $646 million shortfall to approximately $38 million, with the expectation that several revenue-generating measures advanced alongside the budget would close most of that remaining gap. By the end of the session, the state’s fiscal status was roughly $6 million to the positive. However, just before the session ended, the Nebraska Economic Forecasting Advisory Board announced a net loss of tax receipts, creating a $72 million deficit for the fiscal year due to the Department of Revenue processing tax refunds at a faster rate compared to last year. Lawmakers are expected to address the current budget, ending June 30, 2027, during the 90-day session while also preparing to set the next biennial budget. The bill on most cattle producers’ minds is LB1187. This bill, introduced by Agriculture Committee Chairman Barry DeKay (Niobrara), originally increased the per-head inspection fee cap to $1.50 and changed the mileage charge on physical inspections to a $30 surcharge. Sen. Mike Jacobson (North Platte) introduced AM3037 and then AM3068. Key changes include clarifying acceptable forms of ownership evidence for cattle, expanding the Nebraska Brand Committee from five to seven voting members with representation across newly defined geographic districts, and increasing per-head and brand renewal fee caps to $1.50 and $400, respectively. LB1187 also reduces registered feedlot fees to 25 percent of per-head inspection on an annual capacity, allows for up to two annual audits, creates a new registered dairy heifer development facility category, allows cattle to be moved from a back- YCC Class of 2026 visit the Capitol. Gov. Pillen and Sen. Tanya Storer pose after the passage of LB663. POLICY
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