SF 2757
1st Engrossment - 94th Legislature (2025 - 2026)
Posted on 03/06/2026 09:42 a.m.
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A bill for an act
relating to state government; establishing grant programs for local governments
to pay for certain costs of federal action; appropriating money.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. new text begin LOCAL GOVERNMENT GRANTS; LEGAL EXPENSES.
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new text begin Subdivision 1. new text end
new text begin Definition. new text end
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For purposes of this section, "local government" means a
county, home rule charter or statutory city, township, or school district.
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new text begin Subd. 2. new text end
new text begin Appropriation. new text end
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$100,000,000 in fiscal year 2026 is appropriated from the
general fund to the commissioner of revenue to make grants to local governments for eligible
costs in subdivision 4. The commissioner of revenue may transfer money in the local
government grant account to the commissioner of education to distribute grants to school
districts that have been awarded a grant under subdivision 3. This is a onetime appropriation
and is available until June 30, 2027.
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new text begin Subd. 3. new text end
new text begin Application; award. new text end
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A local government may apply to the commissioner of
revenue for a grant to pay for eligible costs under subdivision 4. A local government may
apply to the commissioner for a grant in a form and manner prescribed by the commissioner.
The commissioner must allocate grants on a first-come, first-served basis.
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new text begin Subd. 4. new text end
new text begin Eligible costs. new text end
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Grants under this section must be used to reimburse a local
government for eligible costs incurred by a local government. Eligible costs include:
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(1) increased administrative costs for programs based on federal changes;
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(2) amounts for infrastructure projects that have been canceled or withheld by the federal
government;
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(3) amounts of expected federal funds that have been canceled or withheld by federal
executive order;
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(4) costs associated with recovery from Operation Metro Surge; and
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(5) legal costs associated with upholding state or local laws that conflict with federal
executive orders made effective after January 19, 2025.
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No individual grant to a local government may exceed $2,500,000.
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new text begin EFFECTIVE DATE. new text end
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This section is effective the day following final enactment.
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