Jan 16, 2026

Pillen Highlights Economic Growth, Tax Relief, Public Safety in State of the State Address

Posted Jan 16, 2026 1:20 PM

By Allison Peck | North Platte Post

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LINCOLN, Neb. — Gov. Jim Pillen declared “the state of our state is as strong as ever” during his annual State of the State Address, outlining economic growth, tax reform priorities, public safety initiatives and education policy goals for Nebraska lawmakers during the 2026 legislative session.

Pillen opened the address by reflecting on his recovery from serious injuries suffered in a horseback riding accident one year ago, calling the experience “life-giving” and thanking Nebraskans for their prayers. He also recognized First Lady Suzanne Pillen and the families of public servants for their support.

“Just as I thank her for all she does for me—and for putting up with me—I thank the family and loved ones behind all the public servants in this room for making it possible for you to come here to work for a better Nebraska,” Pillen said.

Government reform and social policy

The governor emphasized efforts to shrink government, reduce spending and enforce conservative social policies.

“We have worked tirelessly to shrink government so that it better serves Nebraskans – improving outcomes, while cutting costs and waste just like a business,” Pillen said.

He noted the administration has reduced reliance on contractors, brought state employees back to in-person work, and enforced laws restricting gender-transition treatments for minors.

“Today, because of the massive victories I stood with the pro-life community to achieve and enshrine in our Constitution – more babies in this state are being protected from the tragedy of abortions than any time since Roe v. Wade,” he said.

Federal partnerships and investments

Pillen credited partnerships with President Donald Trump’s administration for new opportunities and federal investments in Nebraska, including welfare reform, education funding and rural healthcare.

“Nebraska was first in the nation to get a waiver to ban pop and energy drinks… from government-subsidized nutrition programs,” he said. “We were first in the nation to take advantage of the One Big Beautiful Bill opportunity to require able-bodied adults to work before they access welfare.”

He also announced Nebraska ranked among the top ten states in federal investments through the Rural Health Transformation program, receiving more than $218 million.

“This stuff is a win-win for Nebraska and a win-win for America,” Pillen said.

Law enforcement and border security

The governor highlighted Nebraska’s cooperation with federal immigration enforcement, including the establishment of an ICE detention facility.

“We have a simple message: Nebraska is proud to be doing our part to get the border secure and to protect America’s kids from criminals who traffic people, gang violence, and drugs like fentanyl and meth,” he said.

Pillen also honored six Omaha police officers involved in a December shooting that left three officers wounded and a suspect dead.

“These men represent all of the brave Nebraska law enforcement officers who answer the call to protect our people and hold the line against anarchy,” he said.

Economic growth and infrastructure

Pillen pointed to strong economic indicators, including population growth and GDP expansion.

“Nebraska’s economy has grown faster than most states, posting the sixth highest quarterly GDP growth rate in the country,” he said, citing Bureau of Economic Analysis data.

He noted Nebraska has surpassed two million residents for the first time and praised growth in agriculture, ethanol production, cattle, manufacturing and construction.

“Today, we can proudly say that Nebraska ethanol is number one in America,” Pillen said, adding that Nebraska’s cattle industry is also “number one in America.”

The governor also announced acceleration of the Highway 275 corridor project from Norfolk to Omaha.

Workforce, business, and energy priorities

Pillen highlighted the success of Lincoln-based CompanyCam, Nebraska’s first homegrown “unicorn” company valued at more than $1 billion, and called for continued pro-business reforms.

“We must shield against that in Nebraska,” he said, referring to frivolous lawsuits, while urging lawmakers to pass tort reform legislation.

He also promoted the proposed Grow the Good Life Incentive, which would provide a 10% tax credit for businesses that bring new, high-paying jobs to Nebraska.

On energy, Pillen warned of growing electricity demands tied to artificial intelligence.

“Nebraska will win the electricity and AI power game. There’s no other option,” he said.

Taxes and state finances

Calling Nebraska’s tax system “broken,” Pillen urged lawmakers to deliver property tax relief while cutting government spending.

“To truly deliver a real and durable tax cut, we must simultaneously deliver an equal decrease in government spending,” he said.

Pillen said his proposed budget would improve the state’s bottom line by $500 million and dismissed concerns about a fiscal crisis.

“Let me repeat that — nearly 2 billion dollars in the bank and our highest credit rating, ever,” he said.

Education and cultural issues

The governor called for reforms in K-12 and higher education, including ending diversity, equity and inclusion initiatives in public universities.

“I have introduced language in the budget that will definitively end DEI and CRT from Nebraska’s higher ed system,” Pillen said.

He also urged lawmakers to address classroom disruptions in early grades and support legislation restoring disciplinary options for schools.

“Our kids deserve better. And our teachers deserve better,” he said.

Closing message

Pillen closed his address by reflecting on Nebraska’s veterans, unity, and the upcoming 250th anniversary of the United States.

“I look forward to working alongside you – with that Ray Krings-like can-do attitude – to do the work of our state this session,” he said.