PLATTSMOUTH, Nebraska — Nearly six months after expressing his disapproval of welfare, Nebraska Gov. Jim Pillen has announced that the state will now pursue as much federal funding as possible.
Pillen has directed his cabinet members to seek federal funds without “strings attached” to ensure Nebraska receives more than its fair share. He believes this could boost investments in state services, promote growth, or reduce property taxes.
In December, Pillen rejected federal funding for Summer Electronic Benefits Transfers for low-income Nebraska families, citing existing similar programs and a lack of “touch points.”
Months later, alongside the Nebraska Department of Health and Human Services, Department of Education, and many Republican state senators, Pillen announced a revised plan to move forward with the summer food program. The U.S. Department of Agriculture praised the Nebraska proposal and the inclusion of the desired “touch points.”
The program is expected to benefit about 175,000 students, or 80,000 households, by providing $120 in grocery-buying benefits for the summer to those meeting criteria such as free or reduced lunch eligibility.
Pillen explained that his recent actions do not represent a shift from his December stance, emphasizing that his initial opposition was due to the program’s execution, not its goals. He believes “touch points” could enhance participation in other programs and provide better family support.
During town halls, Pillen has reiterated his commitment to providing $1 billion in property tax relief, aiming to reduce the state’s $5.3 billion annual tax collection by 40% by year’s end. He plans to call a special session this summer to further reduce property taxes through credits on income taxes and community colleges.
Shortly after becoming governor in January 2023, Pillen spoke with Oklahoma Gov. Kevin Stitt, who shared that Oklahoma had a personal lobbyist in Washington, D.C., helping secure federal funds. Stitt informed Pillen that Nebraska was second to last in receiving federal funds, while Oklahoma was in the top 10.
Pillen found this disparity “appalling” and emphasized the importance of securing more federal dollars for Nebraska, rather than allowing them to go to other states like California.
Nebraska’s previous governor, now-U.S. Sen. Pete Ricketts, rejected federal funds for emergency rental aid during the COVID-19 pandemic. State lawmakers attempted to mandate acceptance of the funds, but Ricketts vetoed the move. Pillen later accepted a remaining $48 million for Nebraska’s 91 smaller counties in July 2023, after an initial $120 million in relief was distributed to other states.
State Sen. John Cavanaugh of Omaha expressed disappointment that $70 million was left on the table, which could have helped Nebraskans remain housed and benefited communities.
Previous governors, including Ricketts and Dave Heineman, opposed Medicaid expansion before voters approved it, citing cost concerns.
Cavanaugh, a supporter of Summer EBT and rental aid, welcomed Pillen’s new stance on federal funds, saying, “Welcome to the party.”
In the most recent legislative biennium, lawmakers accepted federal funding for nursing homes, hospitals, and Certified Community Behavioral Health Centers, which Pillen celebrated.
State Sen. Jana Hughes of Seward noted that more urban school districts might be better positioned to offer summer programs or food, and acknowledged that Pillen’s awareness of program details influenced his change of heart.
State Sen. Julie Slama of Dunbar cautioned that Nebraska must scrutinize any federal funds to ensure there are truly no strings attached. She emphasized Nebraska’s strong economy and preference for independence from federal aid.
State Sen. Rob Clements of Elmwood, who chairs the Legislature’s Appropriations Committee, supports pursuing available federal funds, while State Sen. Tom Brandt of Plymouth suggested establishing a satellite office in Washington to help Nebraska secure more federal dollars.
“We all pay our federal tax dollars to D.C.,” Brandt said. “We need to get those back for the benefit of the people of the state.”
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