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Plain English Breakdown

The official source material did not provide specific details about funding amounts and sources, leaving these aspects uncertain.

Housing First Supportive Services Act

This act establishes a fund to provide permanent housing and supportive services for people at risk of homelessness, funded by state money and federal Medicaid funds.

What This Bill Does

Creates the Housing First Supportive Services Fund to help pay for housing and support services for individuals who are homeless or might become homeless.
Requires the Department of Health and Human Services to seek permission from the federal government to use Medicaid money to cover supportive housing services.
Allows the department to work with community groups, local housing authorities, and other organizations to provide these services.
Requires the department to report annually on how many people are receiving support through this program and what kind of savings it is creating for state programs.

Who It Names or Affects

People who are homeless or at risk of becoming homeless in Nebraska.
The Department of Health and Human Services, which will manage the fund and provide services.
Community organizations that can help deliver housing and support services to people in need.

Terms To Know

Housing First: An approach that gives homeless individuals permanent housing without requiring them to meet certain conditions first, like being sober or completing treatment programs.
Medicaid: A federal program that helps pay for medical care for people with low income and limited resources.

Limits and Unknowns

The bill was indefinitely postponed on April 17, 2026, so it is not yet law.
It does not specify how much money will be in the fund or where exactly it will come from.
Details about who qualifies for services and what kind of support they can get are left to future rules made by the Department of Health and Human Services.

Official Summary Text

The official site of the Nebraska Unicameral Legislature

Current Bill Text

Read the full stored bill text

LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 740

Introduced by McKinney, 11.
Read first time January 07, 2026
Committee: Health and Human Services
A BILL FOR AN ACT relating to housing; to adopt the Housing First1
Supportive Services Act. 2
Be it enacted by the people of the State of Nebraska,3
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Section 1. Sections 1 to 8 of this act shall be known and may be1
cited as the Housing First Supportive Services Act.2
Sec. 2. (1) The Legislature finds that: (a) Stable housing is a3
fundamental determinant of health and a key factor in reducing reliance4
on costly emergency, institutional, and correctional systems; (b) many5
Nebraskans experiencing homelessness have unmet behavioral health,6
substance use, and physical health needs that can be effectively7
addressed through integrated supportive housing services; (c) evidence8
from other states demonstrates that implementing a Housing First model,9
which provides permanent housing without preconditions combined with10
voluntary supportive services, reduces chronic homelessness, lowers11
medicaid and correctional services expenditures, and improves health12
outcomes; (d) the federal Centers for Medicare and Medicaid Services13
permits states to cover housing-related services under a section 111514
demonstration waiver or state plan amendment; and (e) Nebraska can15
strengthen its continuum of care and promote fiscal responsibility by16
authorizing medicaid reimbursement for supportive housing services.17
(2) It is the intent of the Legislature to: (a) Direct the18
department to seek federal approval to cover supportive housing services19
under medicaid; (b) expand access to permanent supportive housing20
statewide; and (c) leverage state, local, and federal resources to21
stabilize individuals and families at risk of homelessness.22
Sec. 3. For purposes of the Housing First Supportive Services Act:23
(1) Department means the Department of Health and Human Services;24
(2) Housing First means an approach to ending homelessness that25
prioritizes permanent housing without preconditions including, but not26
limited to, sobriety, treatment participation, or criminal justice27
compliance, while offering voluntary supportive services to promote28
stability and self-sufficiency; 29
(3) Medicaid means the Medical Assistance Act established under30
section 68-901; 31
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(4) Permanent supportive housing means permanent, affordable housing1
paired with voluntary, flexible supportive services; and2
(5) Supportive housing services means services that assist an3
individual in obtaining, maintaining, and retaining housing, including4
housing transition, tenancy sustaining, and stabilization services, as5
defined by federal guidance. 6
Sec. 4. (1) The department shall: (a) Seek federal approval through7
a section 1115 demonstration waiver, state plan amendment, or other8
available federal authority to authorize medicaid reimbursement for9
supportive housing services for eligible beneficiaries who are10
experiencing, or at risk of, homelessness; and (b) implement the coverage11
of such services upon federal approval. 12
(2) Covered services shall include, but not be limited to: (a)13
Housing transition services, including outreach, application assistance,14
and landlord engagement; (b) tenancy sustaining services, including case15
management, eviction prevention, and links to community resources; (c)16
housing navigation and stabilization services; and (d) care coordination17
among health care, behavioral health, and substance use treatment18
providers. 19
(3) The department may contract with community-based organizations,20
behavioral health regions, local housing authorities, or managed care21
entities to deliver supportive housing services. 22
Sec. 5. (1) The Housing First Supportive Services Fund is created.23
The fund shall consist of: (a) Money appropriated by the Legislature; (b)24
federal matching funds received from medicaid; and (c) gifts, grants, or25
other contributions. 26
(2) Money in the fund shall be used to: (a) Provide the nonfederal27
share of medicaid expenditures authorized under the Housing First28
Supportive Services Act; and (b) support housing-related costs that are29
not eligible for medicaid reimbursement, including short-term rental30
assistance, operating subsidies, and capital investment in supportive31
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housing. 1
(3) Money in the fund available for investment shall be invested by2
the state investment officer pursuant to the Nebraska Capital Expansion3
Act and the Nebraska State Funds Investment Act. 4
Sec. 6. (1) The department shall coordinate with: (a) The Nebraska5
Investment Finance Authority to leverage federal low-income housing tax6
credits and other housing resources; (b) the Department of Economic7
Development to align community development block grant and federal HOME8
Investment Partnerships Program funds; and (c) local continuums of care9
and housing authorities to ensure supportive housing units are targeted10
to eligible populations. 11
(2) The department shall jointly develop an annual plan with the12
Nebraska Investment Finance Authority that identifies priority13
populations, geographic needs, and strategies for integrating housing and14
health services. 15
Sec. 7. (1) Beginning January 1, 2027, and each January 116
thereafter, the department shall submit an electronic report to the17
Health and Human Services Committee of the Legislature and the18
Appropriations Committee of the Legislature that includes (a) the number19
of individuals receiving supportive housing services, (b) the number of20
individuals transitioned into, and retained in, permanent supportive21
housing, (c) health care and behavioral health outcomes, and (d)22
estimated cost offsets to medicaid, correctional services, and other23
state programs. 24
(2) The department shall contract with an independent entity to25
evaluate the program's effectiveness within five years after the date of26
implementation and report its findings to the Legislature.27
Sec. 8. The department shall adopt and promulgate rules and28
regulations to carry out the Housing First Supportive Services Act,29
including, but not limited to, establishing (1) eligibility criteria, (2)30
provider qualifications, (3) reimbursement methodologies, and (4) service31
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delivery standards consistent with federal requirements.1
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