Over the last several weeks, I have heard from employers across District 42 who are trying to do the right thing. They want to pay fair wages, keep hard-working employees, and continue serving their communities. I have also heard from parents and young people who want what we all want: the opportunity to work, gain experience, and build a future.

That is why the Legislature became involved in the minimum wage discussion this session.

On January 1, 2026, Nebraska’s minimum wage reached fifteen dollars per hour as a result of a voter-approved initiative passed in 2022. That initiative also scheduled future increases tied to inflation. For many families, higher wages are important and meaningful. But for many small employers, especially in rural Nebraska, these changes have created real pressure.

In much of our state, businesses operate on thin margins. Customer volume is lower than in large cities. Prices can’t always be increased without risking losing customers. Labor pools are shrinking, and competition for workers is already high. When wages rise at the same time as utilities, insurance, supplies, and interest rates, some small employers simply cannot absorb the costs. The result is not always higher pay. Sometimes it is fewer hours, fewer jobs, or worse, businesses closing altogether.

When a small business closes in a small town, the impact reaches far beyond that storefront. Jobs are lost. Young people miss out on their first job opportunities. Communities lose essential services residents depend on. Once those doors close, they often never reopen.

The 2022 ballot initiative placed Nebraska on an automatic path of wage increases driven by inflation. While well-intentioned, automatic increases do not account for the economic realities many small employers face. Inflation can change quickly, and businesses cannot always adjust at the same pace. Wage policy that runs on autopilot may be simple on paper, but it does not reflect how fragile many rural businesses truly are.

This is what prompted legislative debate and ultimately the passage of LB 258.

The bill keeps the current fifteen-dollar minimum wage for adults in place for 2026, but it changes what happens after that. Instead of future increases being tied to inflation, the bill sets predictable, modest annual increases of one point seven five percent beginning in 2027. Predictability matters. It allows employers to plan, budget, and make informed decisions about hiring and expansion without guessing next year’s increase.

The bill also establishes a separate minimum wage for fourteen and fifteen-year-olds. This provision is intended to protect entry-level job opportunities. First jobs are where young people learn responsibility and basic work skills. If it becomes too costly to hire inexperienced workers, employers are less likely to take that chance. The result can be fewer opportunities for young people to enter the workforce at all.

There is also a broader question that deserves honest discussion. What is minimum wage meant to be, and how do we decide what dollar amount qualifies as minimum? A household budget in rural Nebraska looks very different from one in an urban area. A small business in a town of a few hundred people operates under very different conditions than a large employer in a major city.

Minimum wage was never intended to be a long-term career wage. It was meant to serve as a starting point as people gain experience, develop skills, and move into higher-paying roles. That progress depends on opportunity. Opportunity arises from businesses that can stay open, hire locally, and invest in their employees over time.

The message I hear most often from small employers in District 42 is clear. They want to hire workers and expand their business. However, they struggle to keep up with rapidly increasing costs.

That concern should matter to everyone. When small employers cannot afford to hire, people lose access to jobs. When people lose access to jobs, families lose stability. When families lose stability, communities lose population and momentum.

My goal is a Nebraska where people can earn more, keep more of what they earn, and find opportunity close to home. Achieving that goal requires policies that recognize the realities faced by rural communities and small businesses, not just those in larger cities.

I will continue to address this issue by listening to employers, employees, and families across District 42 and by weighing what policies mean not only today but also for the long-term health of our communities. It is a pleasure serving as your State Senator. I enjoy the challenge and will continue to do my best to serve the interests of District 42. Please continue to reach out to me about issues important to you at 402-471-2729 or by emailing me at mjacobson@leg.ne.gov.

Monday marks Day 18 of the 60-day legislative session. We are still having floor debate every morning and then moving to hearings beginning every afternoon. Hearings will end on February 27 (Day 35), and we will then proceed to all-day floor debate for the remainder of the session. As a reminder, every bill introduced gets a hearing, but the committee of jurisdiction must vote to send the bill to the floor after the hearing before the Speaker can schedule it for floor debate. If the committee chair chooses not to hold a vote on a bill heard in committee, the bill does not move.

With over 550 bills and constitutional amendments introduced this year, it will soon take a “priority” designation to have a bill heard on the floor. If your bill was fortunate enough to get heard in committee and voted out early, it may have been scheduled for floor debate by the Speaker if the bill was voted out of committee unanimously and would likely not be controversial on the floor. This will continue if there are no priority bills pending scheduling.

Committee and individual Senator priority designations must be made by February 19. Those bills will get priority for scheduling before other non-priority bills. I am fortunate to have four bills heard on the floor so far without any priority designation. All four bills had no opposition, so I expect them to keep moving quickly through the process.

On Monday, I will present LB835 to the Banking, Commerce, and Insurance Committee. The bill makes changes to the fees and certain notices by the Secretary of State. I worked with Secretary of State Bob Evenen on this bill to align fees for business-related services his agency provides with costs, reducing reliance on tax dollars. On Tuesday, I will present LB1130 to the Urban Affairs Committee, a bill I was asked to introduce that would allow neighborhoods within a municipality to create a Community Improvement District. I think that this bill can add another tool in the toolbox for communities for economic development, but I would likely need the Urban Affairs Committee to include the bill in their committee priority bill to move it this year.

A replacement amendment for my LB525, the ag data privacy bill, will be heard before the Banking, Commerce, and Insurance Committee on February 17. I will likely name this bill as my personal priority bill if there is no other path forward this year. I expect the amendment to have strong support.

This past week, we debated Senator Hardin’s LB538, which requires policies and training related to discrimination and antisemitism. Although I strongly support the cause, the bill creates a mandate for K-12 public schools, as well as post-secondary institutions. It also requires the Coordination Commission on Postsecondary Education to employ an executive director and other employees to designate a Title VI Coordinator.

As much as I agree with the intent and need, I generally don’t support unfunded mandates, especially during this time. The bill advanced with 42 votes, but I will continue to evaluate my position between now and Select File. There are many well-intentioned bills heard before the Legislature, but when local funding is required, I tend not to support them because we are telling political subdivisions, on the one hand, to reduce spending to provide property tax relief, yet passing bills that require them to spend more. We cannot have it both ways.

I also want you to know that I am opposed to diverting dollars away from Nebraska’s Veterans Aid Trust Fund. This proposal is part of the budget bills, and I hope it will be fixed prior to the budget coming to the floor. I am working with the Appropriations Committee members to stop this transfer. Once the bill reaches the floor, it will be harder to remove the sweep from the bill.

I also want to thank Lincoln County’s Veterans Service Officer, Tom Gann, for stopping by my office with his wife to visit last week. I have great respect for Tom and hope that everyone knows how fortunate Lincoln County is to have him in this position.

It is a pleasure serving as your State Senator. I enjoy the challenge and will continue to do my best to serve the interests of District 42. Please continue to reach out to me about issues important to you at 402-471-2729 or by emailing me at mjacobson@leg.ne.gov.

Last week was shortened due to the Martin Luther King holiday on Monday, but it was a busy week in the Legislature as we began afternoon committee hearings. Since the Banking, Commerce, and Insurance Committee meets on Monday and Tuesday, we only met on Tuesday this week. I had three of my bills scheduled for hearings that day, as I mentioned last week. As predicted, all three bills were voted out of the committee unanimously and sent to the Speaker for floor debate. I later met with the Speaker to see how quickly the bills can get scheduled. He was optimistic that they could be scheduled as early as this week since the remaining carryover bills from last year are all controversial bills that will likely take eight hours of debate.

Given the limited time we have for floor debate, and the fact that over 500 bills have been introduced this session, debate time will be precious. I fully expect the Speaker to require a priority designation for bills going forward to be scheduled for debate, or for bills to have been voted out of committee unanimously and noncontroversial. My three bills fit that requirement. Of the three bills, I would prioritize the rail park bill, if necessary, to keep it moving.

LB525 is the agricultural data bill I introduced last year on behalf of the Governor. It needed significant changes, so I held an interim study earlier during the fall and have now introduced a “white copy” amendment to completely rewrite the bill and make important changes. We will hold a hearing on the amendment in early February, and it could be a bill I use my priority designation on this session. The bill is important to the Governor and has been widely endorsed by most farm organizations.

Although there is other work to be done as well, rebalancing the budget is going to be a huge task for the Appropriations Committee and the Legislature. Now that the Governor’s budget recommendations have been released, I have received many calls and emails from constituents who want certain programs protected from spending cuts. I have taken all the input into consideration and will keep it in mind as the process unfolds. I would also encourage individuals with a particular budget concern to reach out to members of the Appropriations Committee and provide information to the Committee – whether through in-person testimony or written comments through the Legislature’s comment portal. It is always very challenging to make changes to the budget on the floor, so getting changes made through the Appropriations Committee is the ideal situation.

The Appropriations Committee is the Legislature’s only five-day committee and is constantly evaluating the budget numbers as they receive input along the way. We’ll also know more about how big the balanced budget challenge is (currently an estimated $471 million shortfall) when the Forecasting Board meets again in February. It is unclear how the closure of the Tyson plant in Lexington will affect projections, in addition to the other data considered by the Board. We may see the shortfall grow before we reach the bottom.

Meanwhile, there are other bills introduced that will require a separate appropriation (i.e., have an “A” bill). The Appropriations Committee usually tries to reserve some money in the budget for these types of bills, but that’s much easier without such a large shortfall. I would not want to be a Senator carrying a bill that requires funding.

The Revenue Committee will also be exploring ways to improve revenues without increasing tax rates or adding new taxes. Growth is the best solution to accomplishing this.

As I look at bills introduced, I was disappointed to see that Senator Ben Hansen introduced LB1258, a bill to eliminate the Brand Committee and make substantial changes to the brand law. I strongly oppose the bill and believe it goes way too far. I will be joining Senator Storer in opposing this bill. I fully understand the degree to which cow/calf producers in the Nebraska Sandhills want to preserve the brand laws and the protections that they bring. There have been several meetings over the summer with the Brand Committee to make modifications to the fee schedules and the inspection processes that keep the integrity of the brand law in place while addressing the concerns raised last session. LB1258 radically changes the law and would gut the protections the brand law brings.

We will see if the bill is prioritized, but it will likely find its way back next year, even though Senator Hansen is term-limited.

It is a pleasure serving as your State Senator. I enjoy the challenge and will continue to do my best to serve the interests of District 42. Please continue to reach out to me about issues important to you at 402-471-2729 or by emailing me at mjacobson@leg.ne.gov.

On Tuesday, January 20, we will begin Day 9 of the 60-day session and begin holding committee hearings in the afternoons. Most hearings will start at 1:30 p.m. each day. The mornings will be devoted to floor debate on carryover bills from last year that had unanimous committee support until 2026 bills begin to advance from committee.

The session began with a bang when Senator Machaela Cavanaugh removed several posters from the Capitol walls on Day 1 that were part of the 250^th celebration of our country’s founding. The posters were provided by conservative non-profit PragerU and approved for installation by the Capitol Commission, which manages the Capitol and its grounds. I was told Senator Cavanaugh made comments that she believed President Trump was behind the exhibit. She has publicly stated that she also believed no permission had been granted for the exhibit. In fairness, the posters were not damaged and were stored in her office, but they were removed from the wall along the south corridor of the Capitol near her office (and mine). This was all captured on the Capitol surveillance system. Her actions were met with strong opposition. However, she was not arrested or charged at the time.

This was happening about the same time the Executive Board was considering the expulsion of Senator Dan McKeon. In the end, Senator McKeon chose to resign before his expulsion vote was taken. Many believe that Senator Cavanaugh should face expulsion as well; however, they are two entirely different situations.

Senator McKeon’s proceedings dealt with violations of the Legislature’s workplace harassment policy. Changes made to the policy in the last few years strengthened protections against workplace harassment. Conversely, there is no specific legislative policy or penalties to address vandalism. This isn’t to say that Senator M. Cavanaugh might not face any consequences. Governor Pillen, as a member of the Capitol Commission, elevated the matter for outside legal investigation this week. The Lancaster County Sheriff’s office is investigating the situation and will work with the County Attorney to determine if any charges are appropriate. Stay tuned.

On Wednesday, Governor Pillen appointed Senator Fred Meyer to serve as the District 41 state Senator. Senator Meyer previously served in the body after then-Senator Tom Briese resigned to become State Treasurer. Senator Meyer will serve through the start of the session in January 2027 unless elected to the post. A District 41 special election will be held this year in conjunction with the regular Nebraska primary and general elections.

On the policy front, the Legislature debated two bills this past Friday that I opposed. The first bill, LB463, introduced by Senator Beau Ballard, would have required public schools to develop a cardiac arrest response plan, including the purchase of defibrillators. Originally, the bill included funding from a special fund, but that fund has been depleted, so no money was available. This created a classic unfunded mandate. I opposed the bill even if funding were available, but was especially opposed without the funding. The bill just barely moved forward with 25 votes, but it will need to survive two more rounds of debate. I will filibuster if necessary to stop this bill from passing.

The next item was a proposed Constitutional Amendment to require the state to reimburse cities and counties for any unfunded mandates. Although I oppose unfunded mandates and agree they should be avoided, passing a Constitutional Amendment that fails to define them is unwise. Who decides what policies are unfunded mandates? Who determines the appropriate reimbursement amount? This could lead to unprecedented spending and legal challenges. I was a “no” vote. The bill only got 23 votes, so it died for this session.

On Tuesday, I will have three of my bills up for public hearings in the Banking, Commerce, and Insurance Committee. One bill, LB717, updates banking laws to strengthen disclosures for finance companies and includes a variety of other provisions. LB718 deals with changing requirements for CPA certification. LB719 is a bill I brought for Lincoln County to amend the Rural Projects Act; it would allow the Rail Park to extend services, such as rail tracks and natural gas lines, on land owned by Union Pacific and still qualify for matching funds from the dollars already approved by the Legislature. I expect each bill to advance from the committee and be scheduled for floor debate very soon.

I am also pleased to announce that I submitted my paperwork this week to run for a second term. It has been a pleasure serving as your State Senator, and I look forward to the opportunity to serve District 42 for another four years.

The Legislature will continue with bill introduction on Tuesday and Wednesday. After Wednesday, only bills introduced on behalf of the Governor can be introduced. Please continue to reach out to me about issues important to you at 402-471-2729 or by emailing me at mjacobson@leg.ne.gov.

The legislative session began last Wednesday with some extra twists. The hearing regarding Senator McKeon’s possible expulsion is scheduled for Monday, January 12, at 9:00 a.m. During the hearing, members of the Executive Board and the public will hear from Senator McKeon and the Legislature’s external counsel. They will each present their cases and take questions from the Executive Board. Following the hearing, I expect the Board will go into executive session to decide whether to forward the Legislative Resolution calling for expulsion to the floor. Should they do so, the Speaker would schedule the issue, and the full legislature would vote if he does not choose to leave on his own.

It is important to remember that this issue concerns whether Senator McKeon violated the Legislature’s Code of Conduct policy (essentially a human resources policy) and is not a legal proceeding or issue. The legal ramifications would not be part of the Legislature’s purview.

As many of you are aware, another Senator’s conduct also came under scrutiny during the Legislature’s first week back. Senator Machaela Cavenaugh removed posters placed on the Capitol walls by the Capitol Commission at the request of PragerU in celebration of the country’s 250^th anniversary. Capitol security footage captured the incident. Senator Jared Storm has called for a reprimand from the Executive Board, and Senator Cavanaugh has apologized for how she handled the exhibit, which she believed was in violation of the Capitol Commission’s display policies. I expect that the Executive Board will take steps to formally respond to her actions. However, although her actions were clearly inappropriate, they did not violate specific legislative policy. I will follow up on both these issues next week.

In terms of regular business, almost 250 bills or resolutions were introduced in the first three days of the session. Given the short session, the anticipated budget debate, and all the carryover bills from last year, there will be limited time available for debate. Any bill not passed this year will be indefinitely postponed at the end of the session, and we will start fresh in the new biennium. Senators will need to reintroduce any bills they wish to revisit when the 110^th Legislative Session convenes.

I personally introduced seven bills this week. Two bills deal with routine updates to the Department of Banking’s rules and fees charged, one deals with fee adjustments for the Secretary of State, and one deals with insurance updates. I also introduced a bill specifically to support the Hershey Rail Park. It would amend the existing program rules to allow grant funds to be used to extend rail track on leased land, which I believe will enable inland ports to better utilize grant funding.

Another bill updates laws to increase the ability to stop the financial exploitation of vulnerable adults, and a bill was introduced to increase regulations on non-bank financial institutions to better disclose finance charges. Finally, I introduced a bill to allow retailers to round cash transactions up or down to account for the elimination of pennies, since the federal government will no longer be issuing pennies going forward.

It is a privilege to represent you in the Nebraska Legislature, and I look forward to hearing from you regarding issues that are important to you. I can be reached at 402-471-2729 or by emailing me at mjacobson@leg.ne.gov.

As we begin the new year, I will begin the last session of my first full term in the Nebraska Legislature. Over the past four years, I have not only recognized the impact that the Legislature can have on our everyday lives, but also the responsibility to represent you in a respectful, responsible way.

I recall the first session after I was appointed to the Legislature by then-Governor Ricketts. I had the privilege of sitting next to then-Speaker of the Legislature Mike Hilgers. I will never forget what he told me one day during a protracted filibuster debate. He could tell that my patience was being tried, so he told me that whenever he gets frustrated by what is happening on the floor, he leans back in his chair, looks at the amazing ceiling, and reminds himself how fortunate he is to serve in this body and the number of people counting on him to represent them. Then he finds the strength to push on. I have thought back to those words many times over the years. Mike and I continue to be good friends. The state is fortunate to have him as its Attorney General.

The legislative session begins on Wednesday, January 7, at 10:00 a.m. One of the first items of business will likely be a legislative resolution recommending the expulsion of Senator Dan McKeon from the Legislature. I know many of you have been following the press coverage of this issue. As a member of the Executive Board, I am limited in what I can share, but I can confirm that the facts will become clearer in the coming days.

The Executive Board voted unanimously to recommend Sen. McKeon’s expulsion, and Sen. Ben Hansen, as Chair, has prepared a legislative resolution to that effect. Like any other legislative resolution, once read across, it will be automatically sent to the Referencing Committee for referral to the committee of jurisdiction (the Executive Board). The Board will then schedule a public hearing, likely within the first couple of weeks of the session. At that time, more details about the Legislature’s investigation will be released, including evidence demonstrating a pattern of misconduct that is not isolated to a single incident. Members of the Executive Board will be able to ask questions during the public hearing as well. The Executive Board will then consider how it wants to proceed. If the Board votes to proceed, the legislative resolution would be sent to the Speaker and scheduled for debate on the floor at his discretion. It takes a two-thirds vote (33 votes) to expel a Senator following the floor debate.

It is important to remember that the matter before the Executive Board is primarily a human resources (HR) issue, not a criminal matter. If we receive a complaint from a legislative employee regarding improper contact, sexual statements, or any other conduct violation, we are obligated to investigate. If we find the complaint credible, we must conduct a full investigation to determine the facts and take appropriate action to ensure there is no hostile workplace environment. Following the Legislature’s March 2024 changes to its Code of Conduct, the rules are more targeted. It was an effort to be clearer that the Legislature has no tolerance for inappropriate behavior by its members.

Some have asked whether the Legislature should ever expel a member who was duly elected to service by the votes of a particular district. That is a very important question. The answer relates to the oath every Senator takes to uphold and abide by the Legislature’s rules. If a Senator fails to do so, you are at risk of expulsion. This is not a legal issue involving the courts, but rather an HR issue for the Legislature. The courts have their own rules and processes. If the parties wish to pursue court action, it is separate and distinct from legislative action. Just as someone could be fired from a job for improper conduct without a civil or criminal proceeding, so can the Legislature expel. Please also consider that this action is not taken lightly. My colleagues and I will continue to wrestle with what decision is right for the Legislature as the formal proceedings continue to unfold.

As Mike Hilgers so artfully reminded me, it is an honor and a privilege to serve as a State Senator. We must each take the responsibility of being a Senator seriously and conduct ourselves in ways that show respect to the office and our constituents, whether in a social setting, during grueling filibusters, or in the course of our everyday duties.

Please also consider that any action to expel is not taken lightly. My colleagues and I will continue to wrestle with what decision is right for the Legislature as the formal proceedings continue to unfold.

It is a pleasure serving as your State Senator. I have enjoyed the challenge and will continue to do my best to serve the interests of District 42. Please continue to reach out to me about issues important to you at mjacobson@leg.ne.gov or 402-471-2729, particularly as the 2026 session begins.

Thank you for visiting my website. It is an honor to represent the people of the 42nd legislative district in the Nebraska Unicameral Legislature.

You’ll find my contact information on the right side of this page, as well as a list of the bills I’ve introduced this session and the committees on which I serve. Please feel free to contact me and my staff about proposed legislation or any other issues you would like to address.

Sincerely,
Sen. Mike Jacobson