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OpenSkyLIGHTS: Focus on Nebraska fiscal policy (10/31/25)

151,000

The Nebraska Department of Health and Human Services announced this week that benefits for 151,000 Nebraskans under the Supplemental Nutrition Assistance Program (SNAP) would be suspended effective October 29, 2025, in response to the federal government shutdown. Any remaining benefits on SNAP cards can still be used 9 months after the date they were issued, but no new benefits will be forthcoming until the shutdown concludes. 

There is somewhere between $5-$6 billion in the federal SNAP contingency fund, short of approximately $8 billion needed to cover the month’s benefits across the country. However, the administration has opted not to use the contingency fund, despite it being named in the contingency plan developed by the United States Department of Agriculture in the event of a shutdown, which has now been removed from the agency’s website. Previously, during the shutdown, the agency redirected funds to maintain programs like the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) as well as programs for school meals and child and adult care food programs. 

Impacted Nebraskans can call 2-1-1, a free resource to connect individuals with available community resources for food security and other types of assistance. If you would like to donate to support food banks, the Food Bank of the Heartland has compiled a resource to find organizations nearby

 

4.9%

According to research by the Tax Foundation, the current administration’s tariff strategy has resulted in a 4.9% increase in overall retail prices relative to the pre-tariff trend. Breaking that down further, several retail categories have shown major price increases, including apparel with an 8.99% increase, coffee and tea with a 7.5% increase, household textiles at a 6.2% increase and furniture increasing 6.5%.

The Tax Foundation expresses concern that full price increases may still be forthcoming. They share that frequent tariff rate changes have made several businesses proceed with caution, absorbing tariffs they expect to reduce eventually. They also note that some annual contracts or existing inventory may have already set prices prior to tariff implementation.

The Supreme Court will hear oral arguments about the constitutionality of the tariff implementation beginning next week. Should they remain in place, the Tax Foundation projects that further price hikes will be felt heading into the holiday season and early 2026. 

Nebraskans, particularly in rural areas, do not highly support trade policies as weapons for international relations, according to the University of Nebraska-Lincoln, who administers an economic pulse survey annually. 

 

$14 billion

The Congressional Budget Office (CBO) reports that the nationwide economic impact of the federal government shutdown may reach $14 billion, depending on the length and decisions made while Congress is at a stalemate. The full $14 billion assumes the shutdown lasts until the end of November, but even if a conclusion to the shutdown happens by November 5, approximately $7 billion worth of economic activity will be lost. The CBO also estimates that the shutdown will reduce real gross domestic product growth between 1-2%. An end to the shutdown would resolve most economic impacts, but not all. 

According to reporting provided by the White House, Nebraska’s Gross State Product could decline by about $98 million per week during the shutdown. Approaching 4 weeks of shutdown, the loss could quickly total $426 million in economic output. They also estimate that consumer spending from lost wages will fall by an estimated $155 million in Nebraska each month that the government shutdown extends.

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OpenSkyLIGHTS: Focus on Nebraska fiscal policy (10/31/25)

151,000 The Nebraska Department of Health and Human Services announced this week that benefits for 151,000 Nebraskans under the Supplemental Nutrition Assistance Program (SNAP) would be suspended effective October 29, 2025, in response to the federal government shutdown. Any remaining benefits on SNAP cards can still be used 9 months