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LB 537

Provide requirements for workforce development grants under the Workforce Development Program Cash Fund

109th Legislature (2025-2026) Introduced by Tony Sorrentino

LB 537 creates a Workforce Development Fund to award grants for skills and placement, requires private-match funding, reports outcomes, and distributes grants evenly across Nebrask

Title printed. Carryover bill
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Bill Summary · LB 537

Nebraska LB 537 (2025) — Summary

Overview

  • Bill Number: LB 537
  • Title: Provide requirements for workforce development grants under the Workforce Development Program Cash Fund
  • Purpose: Amend the Workforce Development Program Cash Fund (Section 81-407) to broaden and specify requirements for workforce development grants, including funding intent and distribution.
  • Introduced: January 22, 2025
  • Primary Sponsor: Senator Tony Sorrentino
  • Committee: Business and Labor
  • Hearing: Notice of hearing for March 3, 2025
  • Status: Pending hearing (as of the notice)
  • Repeal: Repeals the original wording of Section 81-407 and replaces it with updated provisions

Key Provisions and Changes

  • Fund Creation and Administration
    • The Workforce Development Program Cash Fund is created and to be administered by the Nebraska Department of Labor.
    • The Department shall award workforce development grants from this fund.
    • Investments of fund money, when available, follow the Expansion Act and the Nebraska State Funds Investment Act, under the state investment officer.
  • Grant Purpose and Eligible Activities
    • Grants may be used for: developing job skills, money management, communication skills, job preparation, and job placement.
  • Eligibility and Matching
    • Applicants must demonstrate the availability of a one-to-one match from private funds to be eligible for a grant.
    • Recipients must report to the Department on job placement outcomes and on self-sufficiency development for individuals receiving services.
  • Geographic Distribution
    • Grants shall be awarded evenly among Nebraska’s three congressional districts.
  • Funding Intent and Amount
    • The Legislature intends to transfer $1.5 million (one million five hundred thousand dollars) for fiscal year 2025-26 to the fund to support grants.
  • Repeal and Reassignment
    • The original section (81-407) is repealed and replaced with the revised provisions in LB 537.

Impact andWho is Affected

  • Beneficiaries: Individuals receiving workforce development services funded by these grants (skill development, financial literacy, etc.).
  • Grant Applicants: Organizations or entities seeking to provide workforce development services must secure a private-match commitment to be eligible.
  • Regions: Grants distributed evenly across the state’s three congressional districts, promoting geographic equity.
  • Oversight: The Nebraska Department of Labor is responsible for grant administration, reporting on job placement and self-sufficiency outcomes, and compliance with matching requirements.

Procedural and Timeline Notes

  • Introduction and Referral: LB 537 introduced January 22, 2025; referred to the Business and Labor Committee on January 24, 2025.
  • Hearing: Scheduled for March 3, 2025 (notice issued February 18, 2025).
  • Allocation Timing: If enacted, funding intent specifies a $1.5 million appropriation for FY 2025-26 to support grants.

Potential Considerations

  • Private Match: The requirement for private funding matches may influence who can access grants and what programs can be funded.
  • Equity: 3-district equal distribution aims to reduce geographic disparities but may raise questions about population-based funding needs.
  • Reporting Burden: Recipient reporting on job placement and self-sufficiency adds accountability but may require administrative capacity.

This summary captures the bill’s substantive changes to the Workforce Development Program Cash Fund and its intended implementation framework as of the March 2025 hearing timeline.

Compiled from official sources — confirm details with the bill’s official record.

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