Appropriations Committee lays out $7+ billion biennial budget, flags $262 million shortfall and cash‑reserve transfers

Senator Clements, chair of the Legislature's Appropriations Committee, told the Senate on Tuesday that the committee advanced the governor's mainline biennial budget bill, LB 261, to general file with committee amendment AM832 on a 7‑1‑1 vote.

The committee amendment, Clements said, establishes the two‑year budget for fiscal years 2026 and 2027 and folds nine separate bills and other adjustments into the appropriations package. He said the changes include funding for higher education, developmental disabilities, biomedical research, county health and provider rates, and targeted one‑time grants for food banks and other programs.

Why it matters: The committee presented numbers showing a narrowing but still substantial deficit and described select‑file amendments that the panel says will close the remaining gap. That shortfall and the size of the state's cash reserve determine whether the budget meets the Legislature's constitutional duty to adopt a…