Conservation groups and NRDs say proposed NET sweep would pause projects and breach voter intent

Multiple conservation organizations and local natural resources districts told the Appropriations Committee that proposed transfers from the Nebraska Environmental Trust in LB1072 would stall or cancel projects across the state.

David Potter, general manager of the Lower Platte South Natural Resources District, said his district has an approved $687,000 NET grant for the Dead Man’s Run flood reduction project in Lincoln that is now in limbo. "Construction on this project is expected to start later this year — without the state investment the project ... is now at risk," Potter said.

Katie Torpy of the Nature Conservancy told senators the NET sweep represents a "breach of public trust." She said NET is funded by constitutionally directed lottery dollars and has historically leveraged hundreds of millions in matching funds. "Diverting them is not just unwise; it's a fundamental breach of public trust," Torpy said, adding that NET has invested across all 93 counties.

Tracy Bruckner of Audubon Great Plains said 53 approved grants representing more than $18.4 million have already been put on pause because of the proposed changes. Ducks Unlimited and other organizations echoed concerns that transferring NET balances would dismantle the matching pipeline that attracts federal and private funds for local conservation and flood‑resilience projects.

Stakeholders urged the committee to reject the NET transfers in LB1072 and to preserve the trust’s original purpose. Several witnesses said the administration’s fund‑balance numbers understate near‑term obligations because multi‑year grant commitments create year‑two and year‑three liabilities.

The administration has argued it can find constitutionally authorized uses for some NET balances and that excess funds should be "put to work." Committee members asked agencies and the NET board for follow‑up clarification on timing and contractual obligations for approved grants.

The committee did not vote; additional agency testimony is expected in follow‑up hearings.