LB266 prohibits cities, villages, and counties from enacting any local ordinance that effectively imposes rent control on privately owned residential property. There are two key exceptions: local laws aimed at increasing affordable housing supply through land‑use or inclusionary zoning, or programs where landlords voluntarily and contractually agree to limit rent hikes. Any ordinance that violates this law is considered null and void.
The Nebraska State Senate passed LB266 on April 3, 2025 by a vote of 37 to 10. We have assigned pluses to the ayes because this bill rightly prohibits local rent-control ordinances that infringe on private-property rights and disrupt free-market housing dynamics. While it may include exceptions, the overall intent limits harmful local interference in housing markets. Rent control undermines the right to own, use, and profit from property, and violates constitutionally protected rights under the Fifth and 14th Amendments, as well as the right to contract guaranteed by Article I, Section 10.
United States Constitution
Article I Section 10
No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it's inspection Laws: and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States; and all such Laws shall be subject to the Revision and Controul of the Congress.
No State shall, without the Consent of Congress, lay any Duty of Tonnage, keep Troops, or Ships of War in time of Peace, enter into any Agreement or Compact with another State, or with a foreign Power, or engage in War, unless actually invaded, or in such imminent Danger as will not admit of delay.
United States Constitution
Fifth Amendment
No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; nor shall any person be subject for the same offence to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.
United States Constitution
14th Amendment Section 1
All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside. No State shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any State deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws.
