NE LB291

Creates the Aid to Municipalities Act establishing a state grant program administered by the Department of Economic Development for cities and villages to fund infrastructure projects including water/wastewater systems, airports, municipal buildings, convention facilities, and mass transit (excluding public highways and municipal roads/bridges)

Caps individual grants at $5 million per municipality, with applications processed in the order received and funds required to be kept in a separate account

Creates the Aid to Municipalities Fund with legislative intent to appropriate $15 million annually to support the grant program and administrative costs

Adds Aid to Municipalities Act grants to the definition of "state aid" for municipalities under existing budget limitation statutes (sections 13-518 to 13-522)

Requires the Department of Economic Development to suspend grant distributions to cities or villages found by the Auditor of Public Accounts to be noncompliant with budget limits, with funds forfeited after six months of continued noncompliance