111,000

Congress passed what they considered a compromise designed to reopen the federal government after the longest shutdown in the country’s history. Part of that agreement was a promise of a future vote on the extension of premium tax credits (PTCs), which would save 22 million Americans who purchase insurance through the marketplaces created by the Affordable Care Act (ACA) from skyrocketing premium costs. This includes approximately 111,000 Nebraskans, according to analysis by KFF. Several proposals are on the table to make health care more affordable, including some that would curb PTCs and a few that would eliminate them entirely. 

One such proposal is expanded use of Health Savings Accounts (HSAs). HSAs are accounts in which people enrolled in high-deductible health plans can elect to transfer pre-tax dollars into an account that they can withdraw from tax-free to pay for certain out-of-pocket health expenses. However, evidence indicates that HSAs are an ineffective way to reduce the burden of health care costs on the lower income brackets. An analysis of 2021 IRS data, the most recent year for which data was published, found that taxpayers with incomes of $1 million or more were the most likely to report individual HSA contributions, and taxpayers between $500,000 and $1 million were the most likely to report employer contributions. According to analysis by the Center on Budget and Policy Priorities, after paying premiums upfront for needed medical care prior to meeting the deductible, many people will have nothing left to put into an HSA. They note that over half of HSA accounts have a balance of less than $500, including more than 1 in 5 accounts with a balance of $0. 

A wide body of research indicates that ACA marketplace subsidies have been found to reduce consumer bankruptcies, delinquency rates for auto loans and third-party collections. Medicaid expansion has also resulted in a decrease in medical debt, reduction of unpaid balances, use of payday loans and home evictions. Further, one study estimates that nearly 700,000 fewer Americans are living in poverty due to Medicaid expansion. There are benefits for providers as well, including a much lower rate of uncompensated care in expansion states and a lower rate of rural hospital closures.

7%

Nebraskans preparing their Thanksgiving menus may experience sticker shock this year, as Consumer Reports shows the average cost of a traditional Thanksgiving dinner rose 7.1% from 2024 to 2025, reaching $61.14. Side dishes drove a significant portion of the increase, with canned jellied cranberries increasing nearly 46%, stuffing increasing 14% and homestyle gravy at 14%. The main dish, a traditional frozen turkey, typically a 10-pound bird, is up 6.7%, costing an average of $24.00 in 2025. The only element of the meal that marked a price decline was pumpkin pie mix, which fell 5.33%, from $4.69 to $4.44. This drop could reflect improved pumpkin harvests or reduced demand after last year’s high prices. 

September was the last report released by the United States Bureau of Labor Statistics, although October numbers are likely forthcoming with the federal government reopening. That report indicated that overall, prices for food eaten at home have increased 2.7% over the last 12 months. 

2.5%

OpenSky has been following the work of the state’s new School Finance Review Commission, established in last year’s legislative session by LB 303. The commission last met on October 31, where several reports were shared with commission members to better understand the full picture of school funding in the state as well as the impacts of recent legislation. Notable among the findings was that for the 2024 property tax year, Nebraskans will see the smallest property tax increase in this century at 2.5%. Property taxes are intricately linked to school funding in Nebraska and, until recent legislative changes, funded the majority of school budgets. In the 2020-2021 school year, 210 of Nebraska’s then-244 school districts, or about 86%, received less than 40% of their total revenue from the state.  In the 2024-2025 school year, the most recent year for which audited data is available, just 13 districts, about 5%, received less than 40% of their revenue from the state. This reflects a significant shift in funding for public schools from local to state sources, which has helped mitigate property tax spikes caused by higher valuations. 

In order to build on positive momentum, legislators will need to keep a sharp eye on the Education Future Fund (EFF), which is on track to deplete much faster than anticipated. Increases in state aid to schools via foundation aid and additional special education reimbursements are funded by the EFF, so continued state investment will be dependent on the solvency of the fund. While EFF was originally billed as a largely self-sustaining system, the only revenue source for EFF that isn’t a fund transfer is investment income, which is expected to drop from roughly $29 million in 2024-25 to about $16 million in 2025-26 and $11 million in 2026-27, according to reporting by the Nebraska Examiner. Maintaining adequate funding for EFF will require additional transfers from the state’s general fund, which may be challenging amid a significant budget shortfall facing the Legislature in 2026.