The Weekly Brief: 03.08.2026
Notes from the Field
Budget Squeeze Impacts BIA Funding
The Appropriations Committee presented its recommended FY 2026-27 budget and legislators have begun to enact their game plan to solve the budget squeeze this session.
If you haven’t been tracking this year’s drama, it’s simple. Previous property tax relief legislation combined with incremental reduction in higher income tax brackets are putting a squeeze on the state budget.
Based on committee votes, floor debate, and General File vote (First Round), it appears the Business Innovation Act will get $1M less this coming budget year ($10M total) with the promised $15M in FY 2027-28. But that promise is just that so we need to keep pushing.
If you aren’t glued to the Nebraska Legislature livestream, here is the high level summary since it involves different bills as legislators do their horse trading. These are the key points of what appears to be in motion:
LB847 proposed by Senator Kauth was made a Business and Labor Committee Priority and passed General File Vote on the floor (that’s usually the make or break moment). It will become the main bill to which BIA-related bills will get attached as amendments.
LB1015 proposed by Senator Ibach will be proposed as an amendment to LB847 thus creating the Business Innovation Act Cash Reserve Fund. This will use Department of Labor’s Unemployment Insurance Premium Cash Reserves (currently about $500M and the largest annual usage was $100M during COVID) as the funding source but the Department of Economic Development will administer the deployment of the funds.
LB1044 proposed by Senator Prokop will also be proposed as an amendment to LB847 thus establishing a requirement to disburse at least $4M to the Prototype Grant and $4M to the Seed Investment programs each year.
The Appropriations Committee will then make a recommendation to provide $10M for the Business Innovation Act programs in FY 2026-27 and recommend $15M for FY 2027-28. The $1M haircut is part of the shared “belt tightening” everyone is feeling this cycle.
The quarterly Department of Labor reports required for anyone receiving Prototype Grants and Seed Investments remain intact and will need to be addressed in the 2027 Nebraska Legislature session through a statutory resolution (which is the common way to smooth out rough edges). Legislators are focused on bigger fish to fry and startup founders are left to deal with the friction in the short term.
Counterintuitively, now is the time to keep pushing to fully fund the $15M. Not only is it important we establish that as our anchor to avoid any further cuts, but it is important to anchor the messaging for the 2027 legislature session.
It appears we will need to deal with the short-term reduction and get prepared for making our case to new legislators and those returning next session.
Takeaway: Get ready for the long haul!
Get Loud This Week
Watch and share “The BIA Did That!” video series
John Wirtz, Co-Founder of Hudl
Another batch of “The BIA Did That!” videos are live on our LinkedIn Page. Each one shares the perspective of a Nebraska founder, investor, or community champion on why the Business Innovation Act matters.
First batch features:
What can you do?
Reach out to your state senator encouraging them to fully fund the BIA with $15M and share the video links above
Like the LinkedIn page, watch the interviews, and like & share the video posts to your network
The Basics
New to the Legislature?
Read this Silicon Prairie News guest editorial, which explains how bills become laws in Nebraska and how your voice shapes them.
Bills of Interest
Seven bills that matter the most this session
LB100: Establish the Office of Entrepreneurship in the Department of Economic Development, encourage state agencies to contract with startups, and require the state pension fund to Invest in Nebraska startups.
LB847: Adopt the Nebraska Registered Apprenticeship Act and change provisions relating to the combined tax rate under the Employment Security Law - this becomes the main bill to which the BIA-related bills get attached as amendments.
LB999: Establish the Business Innovation and Startup Commission to help guide state government decisions.
LB1015: Create a Business Innovation Reserve Fund to provide long-term stable funding of the Business Innovation Act programs.
LB1044: Change provisions of the Business Innovation Act to create long-term stability of funding and establish a minimum amount awarded
LB1156: Adopt the Disinvested Community Development Incentive Tax Credit Act to help fund small business and startup support, accelerator programs, and workforce training in rural and urban communities.
LB1205: Require the Department of Economic Development to award microlending grants under the Business Innovation Act
Takeaway: You can watch each bill evolve and progress by clicking the links.
You are one of 151 people (and counting) who have stepped forward to speak up for Nebraska startups. Thank you!
Small actions, big impact
Many thanks to everyone who shared their stories below. The chorus continues to grow!
One message, many voices
In your communications, please consider using this message:
Helping Nebraska startups is a strategic investment that creates a more vibrant economy, more high paying jobs for Nebraska workers, and a greater diversity of future tax revenues. The grass is always greener where you water it!
Until next week,
Scott Henderson
Nebraska Citizen