Nevada Governor Lombardo issues orders on school funding and data centers

Nevada Governor Joe Lombardo has issued two significant executive orders addressing education stability and economic development.

To combat fiscal instability caused by declining student populations, Lombardo signed an emergency regulation to protect school district funding. This measure allows districts to be funded based on figures approved during the 2025 legislative session, bypassing the standard per-pupil funding formula that would otherwise trigger mid-year budget reductions. The action aims to prevent layoffs and program closures, particularly in the Clark County School District.

Separately, the Governor signed an executive order establishing new development standards for data centers to encourage AI-related economic growth. While the order maintains tax abatements for the industry, it reduces the amount of sales and use tax eligible for abatement. Additionally, companies seeking these incentives must sign a ‘community support commitment’ to ensure that data centers, rather than local ratepayers, bear the costs of regular and emergency water and power usage. The Governor’s Office of Economic Development is tasked with setting the standards for these commitments by November 6.