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Committee hears plan to create Nebraska Office of Registered Apprenticeship and expand workforce funding (LB847)

Nebraska Legislature, Business and Labor Committee · January 26, 2026

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Summary

LB847 would establish a Nebraska Office of Registered Apprenticeship within the Department of Labor, allowing Nebraska to operate as a state apprenticeship agency (SAA) and to redirect up to 50% of the SUT designation toward workforce development; proponents say this will expand apprenticeships in healthcare, manufacturing, and other sectors without increasing employer taxes.

Sen. Kathleen Kauth introduced LB847 to create the Nebraska Office of Registered Apprenticeship inside the Department of Labor, enabling Nebraska to seek federal State Apprenticeship Agency (SAA) status and directly register apprenticeship programs, approve sponsors, and issue credentials.

Commissioner Katie Thurber told the committee about federal apprenticeship expansion funds and argued state control will let Nebraska prioritize industries like manufacturing, healthcare and agriculture and expand youth and pre-apprenticeship pathways. DOL also explained the bill would increase flexibility in directing the state unemployment insurance tax (SUT) designation from a 20% cap up to 50% where needed, while emphasizing the change is not an employer tax increase but a reallocation of existing combined tax percentages.

Support came from business groups, the University of Nebraska, and the Nebraska Hospital Association. Ron Sedlacek (Nebraska Chamber of Commerce) and Ana Lopez Shalla (University of Nebraska system) said the office could help embed apprenticeship into degree pathways and scale apprenticeship linked degrees. Christine Whitman of the Nebraska Hospital Association said apprenticeships could help address persistent staffing shortages in rural hospitals and health systems.

Committee members asked for detail on funding mechanics, the advisory role of a proposed Apprenticeship Council, and how apprenticeships differ from internships. DOL confirmed existing federal grant support would provide initial administrative funds and the proposed changes would primarily reallocate cash-fund resources to build programs.

The hearing closed with broad support and no recorded opponents in the committee hearing; the committee may consider technical amendments.