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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1229
Introduced by Strommen, 47; Storer, 43; Storm, 23.
Read first time January 21, 2026
Committee: Appropriations
A BILL FOR AN ACT relating to appropriations; to create the Rural Health1
Transformation Fund; to provide requirements for application for and2
use of certain funds; and to declare an emergency.3
Be it enacted by the people of the State of Nebraska,4
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Section 1. The Rural Health Transformation Fund is created. The1
State Treasurer shall credit to the fund any money received from the2
federal Centers for Medicare and Medicaid Services for the Rural Health3
Transformation Program that was authorized by the One Big Beautiful Bill4
Act, Section 71401 of Public Law 119-21. The money in the fund shall be5
expended for purposes authorized by the federal law and no other purpose.6
No transfers to any other fund or program of state government shall be7
authorized by the Legislature, and no other use of such money shall be8
implemented by the Governor. The state investment officer shall invest9
any money in the fund available for investment pursuant to the Nebraska10
Capital Expansion Act and the Nebraska State Funds Investment Act.11
Investment earnings shall be credited to the fund.12
Sec. 2. (1) Any application on behalf of the State of Nebraska for13
funds from the federal Centers for Medicare and Medicaid Services for the14
Rural Health Transformation Program that was authorized by the One Big15
Beautiful Bill Act, Section 71401 of Public Law 119-21, shall be16
electronically reported to the Clerk of the Legislature. Any expenditure17
of money received pursuant to an application shall be limited to the uses18
approved in the application. The applicant shall post all awards, direct19
and indirect, and all grants on the website of the Department of Health20
and Human Services. 21
(2) The applicant shall electronically report all expenditures of22
such money to the Clerk of the Legislature on an annual basis. The report23
shall include a list of all beneficiaries that includes direct awards and24
indirect awards passed through from the direct awards and any outcomes25
and metrics collected. 26
(3) The Clerk of the Legislature shall post all information received27
under this section on the website of the Legislature.28
Sec. 3. No expenditure of money from the Rural Health29
Transformation Fund shall supplant state rural health spending from the30
prior fiscal year. Any initiative which applies to receive any money from31
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the fund shall receive approval for a sustainability plan prior to1
distribution of any money. 2
Sec. 4. Since an emergency exists, this act takes effect when3
passed and approved according to law. 4
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