HF 4871

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/13/2026 04:34 p.m.

A bill for an act
relating to taxation; aids to local governments; establishing a onetime aid to
reimburse certain city costs of federal enforcement actions; appropriating money.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin FEDERAL ENFORCEMENT REIMBURSEMENT AID.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
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new text begin (b) "City" means a statutory or home rule charter city.
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new text begin (c) "Commissioner" means the commissioner of revenue.
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new text begin (d) "Eligible costs" means operating and capital costs of municipal public safety,
emergency management, public works, and legal counsel.
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new text begin (e) "Federal enforcement actions" means the presence of United States Department of
Homeland Security immigration officials in Minnesota for purposes of federal immigration
enforcement between December 1, 2025, and May 31, 2026.
new text end

new text begin Subd. 2. new text end

new text begin Certification of costs. new text end

new text begin (a) By August 1, 2026, each city may submit to the state
auditor a report detailing eligible costs incurred by the city in association with federal
enforcement actions. The state auditor shall prescribe the form and manner of the report.
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new text begin (b) The state auditor may require cities to provide further documentation or justification
as needed to verify the costs reported are accurate, eligible, and attributable to federal
enforcement actions.
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new text begin (c) By September 1, 2026, the state auditor must certify to the commissioner the costs
that each city reported incurring in association with federal enforcement actions, excluding
costs the state auditor determines to be inaccurate, ineligible, or unattributable to federal
enforcement actions.
new text end

new text begin Subd. 3. new text end

new text begin Distribution. new text end

new text begin Each city shall receive an amount of aid equal to the product of:
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new text begin (1) the total amount appropriated for aid under subdivision 6; and
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new text begin (2) the ratio of the costs certified by the state auditor for the city under subdivision 2 to
the costs certified by the state auditor for all cities under subdivision 2.
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new text begin Subd. 4. new text end

new text begin Federal reimbursement. new text end

new text begin (a) Cities are encouraged to make reasonable, good
faith efforts to pursue federal reimbursement for costs incurred in association with federal
enforcement actions.
new text end

new text begin (b) A city that receives federal reimbursement for costs incurred in association with
federal enforcement actions must return to the commissioner the lesser of the amount of
the federal reimbursement or the portion of aid received by the city under this section for
the same or similar costs. Aid returned to the commissioner under this subdivision is canceled
to the general fund.
new text end

new text begin Subd. 5. new text end

new text begin Certification and payment. new text end

new text begin (a) By December 1, 2026, the commissioner must
calculate and certify the amount of aid payable to each city under this section.
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new text begin (b) By December 26, 2026, the commissioner must pay federal enforcement
reimbursement aid to each city.
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new text begin Subd. 6. new text end

new text begin Appropriation. new text end

new text begin $10,000,000 in fiscal year 2027 is appropriated from the general
fund to the commissioner of revenue for aid payments under this section. This is a onetime
appropriation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2026 only.
new text end