-5% 

When the 110th Nebraska Legislature convenes in January 2027, the body will have significant work ahead of them to close a likely $208 million budget shortfall in the current biennium along with a projected $840 million shortfall for the next budget period beginning in July 2027. Both numbers are subject to change after an October meeting of the Nebraska Economic Forecasting Advisory Board, who will take into account monthly receipts as well as economic projections to determine the full scope of the budget work. 

In a July memo to agency leaders, the Governor indicated that he would be withholding at least 5% of already-appropriated allotments to state agencies, as well as implementing a hiring freeze on most state positions. 

In response to the memo, several departments have submitted plans to reduce spending or increase fees to fill the gap. Fee raises were proposed by the Department of Insurance, the Department of Labor, the Department of Water, Energy and Environment and the Department of Banking and Finance. Other agencies, such as the Board of Barber Examiners would reduce the frequency of inspections, and when employees travel on state business, they would be asked to sleep in their vehicles instead of getting hotel rooms. 

Several departments did not submit proposals or forwarded refusals, including the office of Mike Foley, Auditor of Public Accounts. Foley called the 5% minimum cuts “pennywise and pound foolish” noting that his department safeguards taxpayer dollars from misuse.  

Ultimately, department appropriations for upcoming fiscal years will be determined by the Legislature’s Appropriations Committee, which will see new leadership in 2027 after Chairman Robert Clements faces term limits and Vice Chairperson Christy Armendariz declined to run for re-election. 

-22%

New data released from the Nebraska Department of Health and Human Services (DHHS) shows that in one year since the passage of the One Big Beautiful Bill Act (H.R. 1), Nebraska participation in the Supplemental Nutrition Assistance Program (SNAP) fell by nearly 22%. In July 2026 alone, approximately 7,600 Nebraskans lost critical nutrition support. Additionally, DHHS reporting has shown decreased response times and higher error rates for processing SNAP applications in recent months. The decline in July SNAP participation and increased wait times and error rates come after DHHS added more stringent verification requirements in May. This likely means that individuals who qualify for SNAP benefits may have longer wait times to receive assistance. 

Error rates are an important metric to watch, as Nebraska has hovered very close to a 6% error rate in recent years. H.R. 1 established 6% as the upper limit for error rates before states would lose federal support to pay for a portion of SNAP costs. Nebraska’s average of 5.9% for federal fiscal year 2025 means the state will not have to pick up these costs for 2027 – good news given the state’s budget challenges – but even a slight increase in the error rate average could cost the state a significant amount in future years. 

The decrease in SNAP recipients comes at the same time that food prices continue to rise across the country. According to the United States Department of Agriculture (USDA), the grocery store or supermarket food purchases inflation metric has risen 2.7% in the last year. Key categories like fresh fruits and vegetables, beef, fish, and nonalcoholic beverages are forecasted to surpass their 20-year average rate of growth in 2026. 

$519 million

A recent executive order signed by Governor Jim Pillen is designed to prevent data centers from being eligible for future tax incentives. It also establishes an advisory group to make recommendations to the legislature on future policy related to data centers, which are popping up across the country with the emergence of artificial intelligence. However, according to reporting by 1011 Now using data obtained from the Governor’s office, data centers have amassed $519 million in property tax exemptions in just over 5 years. Some of these incentives are part of the ImagiNE Nebraska Act, an economic development package designed to create new jobs and capital investments in the state. 

Though the executive order was designed to prevent large data centers from receiving incentives, the order does not expressly bar their qualification. It instead creates new review criteria and interagency coordination with the Department of Water, Environment, and Energy to consider how new projects applying for incentives affect Nebraska’s natural resources and environmental quality.  

Twelve Nebraska counties have already voted to establish a moratorium on new data center construction, most citing the need to preserve water resources for agricultural production as their central concern.