​Nebraska lawmakers reconsider NU budget cuts in light of federal funding losses

The Nebraska Legislature’s Appropriations Committee has signaled a shift in direction regarding state funding for the University of Nebraska, moving away from an earlier proposal to cut funding and instead recommending a modest increase. On Tuesday, committee members discussed raising NU’s state appropriation by 1.25% for the 2025-26 fiscal year, which would result in an additional $8.7 million, bringing total state support to approximately $708 million. This reversal comes in response to mounting concerns over deep federal funding losses. NU President Jeff Gold reported that the university has already seen approximately $178 million in federal research grants and contracts canceled or delayed, including a $19 million USAID-funded irrigation project. Gold noted that federal delays are also costing the university an estimated $55 million monthly. Initially, Governor Jim Pillen had recommended a $14.3 million cut to NU’s budget, which the committee adopted in its preliminary budget. However, recent negotiations between the governor’s office and university leadership have prompted a reconsideration. Despite the proposed 1.25% increase, NU may still face additional tuition hikes and internal budget cuts, as it has already trimmed $58 million since the pandemic. Some lawmakers, like Sen. Machaela Cavanaugh, pushed for a 2.5% increase to safeguard the university’s long-term stability but were outvoted. With the Legislature facing a projected $289 million deficit, committee members acknowledged that more difficult funding decisions lie ahead. A final vote on NU’s biennial budget has been postponed as lawmakers continue to gather details.