LINCOLN — After new economic forecasts grew Nebraska’s projected budget deficit by roughly $175 million, lawmakers turned to the state’s rainy day fund to help fill the gap.

The Legislature’s Appropriations Committee voted 8-0 Friday to recommend pulling $130 million from the state’s cash reserve to help plug the budget hole. Though Gov. Jim Pillen asked lawmakers to avoid using the reserve this session, Appropriations Chair State Sen. Rob Clements of Elmwood said the committee was left with little choice by the end of its budget deliberations.

After years of states pushing legislation to accelerate the development of data centers and the electric grid to support them, some legislators want to limit or repeal state and local incentives that paved their way.

President Donald Trump also has changed his tone. Last year he issued an executive order and other federal initiatives meant to support accelerated data center development. Then last month, he cited rising electricity bills in saying technology companies that build data centers must “pay their own way,” in a post on Truth Social.

It’s no secret that Iowa is home to large geological formations that are rich in hydrogen-producing rocks, but the question in recent years has turned to whether or not that hydrogen can be extracted in meaningful quantities. 

If the answer is yes, it’s likely Iowa would have a new natural resource commodity that could be used for a domestically produced fertilizer and clean fuel source. 

As exploration continues in the state, Iowa lawmakers are looking to update state laws to help regulate the prospective industry.