Gov. Pillen, Senators, and Childcare Advocates Celebrate Signing of LB 304

LINCOLN, NE – Surrounded by children from the Kids Can Community Center in Omaha, Governor Jim Pillen ceremoniously signed LB 304 with sponsor Senator Wendy DeBoer and bill supporter Senator Brad von Gillern. The law permanently expands eligibility for child-care assistance, helping thousands of Nebraska families maintain access to affordable care and enabling parents to remain in the workforce. The bill was introduced during the 2025 legislative session and passed this year.

“Without this bill, thousands of working families would have lost vital childcare assistance. That would have made it more difficult for those parents to remain in the workforce,” said Gov. Jim Pillen. “This isn’t just a family issue -- it’s a workforce issue. By signing this legislation, we’re not just extending a program, we are renewing a promise to Nebraskans that this will always be a place where you can raise a family and build a career.”

In 2024, Gov. Jim Pillen signed the Child Care Tax Credit Act, creating a refundable Nebraska state tax credit for parents or legal guardians of qualifying children age 5 and younger. To be eligible, a taxpayer’s total household income must be $150,000 or less, and the child must be claimed as a dependent for federal income tax purposes.

The credit provides $2,000 per qualifying child for households with income of $75,000 or less and $1,000 per qualifying child for households with income greater than $75,000 but not more than $150,000. The refundable credit was designed to help Nebraska families offset the cost of childcare while supporting workforce participation and economic growth.

LB 304 builds on Nebraska’s broader childcare initiatives by making the state’s expanded childcare subsidy eligibility provisions permanent. Together, the tax credit and expanded subsidy program provide complementary forms of support to help Nebraska families access affordable childcare.
“Thank you to all the co-sponsors of LB 304, the advocates we worked with to pass the bill – especially First Five Nebraska and all the families who helped us along the way – and to Governor Pillen for his support of LB 304,” said Sen. DeBoer. “Because of this bill, more children in Nebraska will have access to quality childcare and their parents will be able to work knowing their kids are safe. Legislation like LB 304 prioritizes our kids and families, making Nebraska a better place to live while ensuring our economy stays strong.”

The legislation removes the sunset date on Nebraska’s expanded childcare subsidy eligibility rules, preserving the higher income eligibility limit at 185% of the federal poverty level rather than allowing it to revert to a lower threshold.

Sen von Gillern, chair of the Legislature’s Revenue Committee, was a strong supporter of LB 304.
“I am pleased to have worked with Sen. DeBoer and colleagues across the chamber to get LB 304 across the finish line,” said Sen. von Gillern. “This critical bill helps working Nebraska families care well for their children while parents fill essential roles in the workplace. This was a great bipartisan effort, illustrating that great things are possible when we all work together.”

The law also permanently preserves transitional childcare assistance, allowing families to gradually phase out of the program as their income rises above eligibility limits. In addition, LB 304 eliminates scheduled expiration dates for the funding mechanism tied to federal Child Care and Development Block Grant support for these reforms.

By making these provisions permanent, LB 304 provides long-term stability for Nebraska families, employers, and childcare providers while strengthening the state’s workforce and economy.