Opening remarks
With just 25 days left in the session, only two of Governor Lombardo’s five expected bills have been introduced. While late introductions aren't totally unheard of within these walls, the timing has some of us folks concerned that there won’t be enough time for discussion.
Adding to the tension, the Economic Forum just approved a two-year budget projection that’s $191 million lower than what was expected back in December and will likely result in budget cuts and kill many money-related bills.
Tax Revenues provided by Economic Forum, The Nevada Globe.
Here's a quick snapshot of where the numbers landed:
Additionally, a joint revenue forecast from the Legislative Counsel Bureau’s fiscal staff and the Governor’s Finance Office, shared by Assembly Speaker Yeager, indicates that projected funding for the State Education Fund is expected to see a $160 million decrease.
Key economic assumptions also include higher inflation, reduced travel, and a slowing real estate market. Read more about it on the Nevada Independent's report here.
And if you'd like to stay up to date with everything happening in the building, the Nevada Independent's policy tracker is also a great tool!
-Ana, Associate at Tom Clark Solutions.
ICYMI
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EDUCATION
What’s in Lombardo’s education bill? Open enrollment, charter school, and literacy funding
Governor Lombardo has introduced a comprehensive education bill aimed at expanding school choice, enhancing accountability for underperforming schools, and investing in literacy and educator incentives. The legislation proposes broadening open enrollment policies, allowing students to attend schools outside their designated zones—including charter and private institutions—and mandates transportation support for those transferring from low-performing schools. Additionally, the bill seeks to establish a fund to provide bonuses for high-performing educators and allocates resources to bolster early literacy programs, addressing concerns over potential third-grade retention due to reading proficiency standards. While the bill underscores a commitment to educational reform, it arrives amid fiscal uncertainties, with the upcoming Economic Forum expected to reveal potential revenue shortfalls that could impact budget allocations.
$160M fall in projected Nevada education funding raises questions about program expansion
Nevada's State Education Fund is projected to collect approximately $160 million less than anticipated for the 2025–2027 biennium, primarily due to declines in sales tax revenue. This shortfall raises concerns about the state's ability to expand K-12 education programs, with officials prioritizing the maintenance of existing services. Governor Lombardo has expressed a commitment to preserving education funding, potentially utilizing emergency reserves to mitigate the impact. The forecast also indicates a $153 million revenue decrease for the current fiscal year, exacerbating budget challenges. Nevada's per-pupil funding remains about $4,000 below the national average, and the current financial constraints may hinder efforts to close this gap.
ECONOMY
Lombardo economic development bill targets child care, high-tech business, rural housing
Governor Lombardo has introduced SB461, a wide-ranging economic development bill aimed at reducing the state's reliance on tourism. The bill includes up to $12 million annually in tax credits to expand child care access, a critical need as over 70% of Nevada children lack licensed care. It also offers tax abatements to businesses in clean energy, advanced manufacturing, and defense technology, with incentives for higher wages and local hiring. The proposal removes requirements for workforce diversity plans in some state grant programs. Estimated to cost $124 million over two years, the bill arrives just as the state anticipates a revenue downturn, raising questions about future budget impacts.
Nevada joins a dozen states in suing the Trump administration to stop tariff policy
Nevada has joined a lawsuit challenging the Trump administration, arguing that the president overstepped his constitutional authority by imposing tariffs without congressional approval. Filed in the U.S. Court of International Trade, the suit contends that the administration's use of the International Emergency Economic Powers Act to justify the tariffs is unlawful and has caused economic disruption. Nevada Attorney General Aaron Ford criticized the tariffs as a "monumental overstep" that disrupts both the global economy and the daily lives of Nevadans. The lawsuit seeks to have the tariffs declared illegal and to prevent their enforcement, emphasizing that only Congress has the power to impose such trade measures.
ENVIRONMENT
‘Political realities’ killed Nevada bill that would permanently fund wildlife crossings
AB486, which aimed to establish a permanent funding source for wildlife crossings through a $1 tire fee, was significantly altered due to political opposition and concerns from the trucking industry. The proposed fee was expected to generate $2–$3 million annually for projects designed to reduce the state's estimated 5,000 annual animal-vehicle collisions. However, the bill's tax component faced challenges, including the requirement of a two-thirds legislative majority for approval and Governor Lombardo's stance against tax increases. Consequently, the bill was amended to remove the tire fee and now focuses on transportation reporting requirements, including the progress of wildlife-related projects identified by the Nevada Department of Transportation.
INFRASTRUCTURE
Here’s what the Nevada Legislature is doing to expand, regulate the use of AI
Nevada lawmakers are moving to regulate the fast-growing use of artificial intelligence with a series of new bills this session. One key proposal, SB199, would require AI companies to register with the state and restrict how insurers and landlords use AI-driven data without consumer consent. Other bills seek to limit AI’s role in healthcare decisions and emergency services, aiming to ensure human oversight remains in critical sectors. Lawmakers say the goal is to balance innovation with consumer protection as AI technologies rapidly evolve. Nevada's efforts reflect one of the most aggressive state-level pushes to oversee AI deployment.
HEALTHCARE
Top Nevada lawmaker seeks to cap insulin prices at $35 a month under private insurance
Assembly Speaker Steve Yeager has introduced a bill aiming to cap insulin copays at $35 per month for Nevadans with private insurance. This initiative seeks to alleviate the financial burden on the state's estimated 270,000 adults diagnosed with diabetes, some of whom currently pay up to $500 monthly for insulin. The proposed legislation excludes Medicaid and Children's Health Insurance Program recipients, who typically have minimal or no copays for insulin