Attorney General outlines Perkins County Canal litigation strategy and cost outlook

Nebraska Attorney General Mike Hilgers told the Appropriations Committee that the Perkins County Canal dispute with Colorado has advanced to filings before the U.S. Supreme Court and that the state has pursued negotiations with Colorado in an attempt to avoid protracted litigation.

Hilgers said Nebraska filed an original‑jurisdiction case last year and that the court has asked for the U.S. solicitor general’s view on whether to take the matter. "We're waiting for him to weigh in one way or the other," Hilgers said, noting he and his team traveled to Washington, D.C., to present the case.

The attorney general described current legal spending as modest but warned that, over time, the litigation could require significant resources. "We think it will be in the 7‑figures almost certainly, whether it's $4,000,000 or $7,000,000 over the course of six years," Hilgers said, adding that the total cost of the canal project itself would be considerably larger and that litigation timelines affect ultimate expense.

Hilgers said the state initially tried extended negotiations with Colorado and that litigation was pursued as the means to preserve Nebraska’s compact rights. He also described how appropriation and cash‑reserve decisions by the legislature can affect perceptions of Nebraska’s commitment to the project and could influence Colorado’s argument about Nebraska’s political will.

Committee members asked about the source of funds, the ability to reallocate appropriations if needed, and whether previously appropriated canal dollars were intended to cover likely litigation. Hilgers responded that some funds already have been spent on design and EPA work and that, while appropriations can be reallocated, taking money from the canal reserve would reduce litigation leverage and could undercut the state's posture before the court.

What happens next: Hilgers said internal work continues and external filings and procedural steps before the U.S. Supreme Court are pending the solicitor general’s input; the committee recorded the update as it considers budget changes impacting litigation funding.