Candace BarnetteMinnesota lawmakers are investing more than $700 million in capital projects, following state officials’ approval of two packages this month. The new legislation, now waiting for Gov. Tim Walz’ signature, will provide a major boost to water and transportation projects statewide.
The bulk of the funds will support urgent upgrades to essential infrastructure, including clean water systems, local roads and bridges. The agreement creates a statewide program to distribute grants for clean drinking water projects. The program will be allocated $87 million, with $43.5 million for drinking water grants and another $43.5 million for wastewater grants.
Another $18 million will target drinking water contaminants that exceed health advisory levels—a critical need as the Minnesota Center for Environmental Advocacy reports 500,000 Minnesotans have unsafe nitrate pollution in their water.
The state is allocating $80 million for transportation projects. Minnesota’s Local Road Improvement Program will receive $42 million of that funding for construction, reconstruction or reconditioning projects. Another $31 million of that allocation will fund bridge replacements.
The Bureau of Criminal Apprehension will receive $67 million to build a southern Minnesota regional office and laboratory. The 55,600-square-foot forensic laboratory and investigations facility will support criminal investigations, forensic analysis and training for law enforcement. The building is planned for a state-owned parcel of land north of the Blue Earth County Justice Center in Mankato.
Minnesota State University and the University of Minnesota will receive $60 million for asset preservation. Another $44 million will go toward natural resources, including $33 million for asset preservation and $9 million for flood hazard mitigation.
Two new public housing initiatives will receive a combined $29 million in funding. The first, a $26 million rehabilitation program, supports the development or acquisition of city- or county-owned housing. The second establishes a $3 million grant program to aid cooperative manufactured housing projects statewide.
Other major infrastructure projects range from the construction of a new library to a new animal hospital at the Minnesota Zoo.
Minnesota’s latest capital investment plans are funded through a combination of borrowing, dedicated funds and cash. Lawmakers approved two separate bonding bills during a special session to support the infrastructure projects.
The bulk of the funding—more than $646 million—comes from general obligation bonds, which the state sells to investors and repays over time. Another $73 million is drawn from the state’s transportation fund, which is typically supported by revenues like fuel taxes and vehicle registration fees. An additional $6.5 million in direct cash appropriations rounds out the total, with some of the cost offset by canceling previously approved but unused funds.
Lawmakers passed the bill during a one-day special session, and it will now move to Gov. Tim Walz’s desk for signature.
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