HF 2418 Minnesota House · 2025-2026 Regular Session

Information provided for capital project grants to political subdivisions modified.

HF 2418 requires local governments receiving state funding for capital projects (like roads, schools, or bridges) to establish and maintain dedicated replacement accounts. These accounts must hold funds for future major repairs, replacements, or preservation of the projects, with annual deposits based on depreciation and inflation. Local governments must adopt a written policy outlining how the funds will be used, including safety, maintenance, and sustainability criteria. Failure to comply results in a penalty fee equal to 1% of the state funding amount per year, effective for new projects starting July 1, 2025.

Bill status in committee 1 of 4 stages cleared

Introduction

Mar 2025

Committee Review

Floor Vote

Governor

Introduced Mar 17, 2025 Last action Apr 9, 2026

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What changed between versions

1st Engrossment → 2nd Engrossment · 5 edits · Apr 7, 2026

MODERATE

The bill was revised to remove requirements for local governments to create their own capital project plans and instead focus on modifying the information that must be included when requesting state capital project grants. The effective date for these new reporting requirements was also shifted from July 1, 2025, to January 1, 2027.

Scope change

The bill's scope shifted from mandating a proactive planning process for local governments to a reactive reporting process where local governments only provide specific data points when applying for state assistance.

REQUIREMENT

Removed the requirement for grantees to establish and maintain their own capital project plans for major rehabilitation, expansion, or preservation.

Modified the list of required information for grant requests to include specific details on local/private funding, bondable activities, state operating subsidies, and maintenance plans.

Added a requirement to specify whether a project requires a predesign under section 16B.335 and if that predesign has been submitted for review.

Added a requirement to include information mandated by section 473.4485, subdivision 1a, if applicable.

TIMELINE

Changed the effective date of the section from July 1, 2025, to January 1, 2027.

Floor votes

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 7, 2026

Lower · Passed

Committee report, to adopt as amended

lower

Apr 1, 2025

Lower · Passed

Committee report, to adopt as amended and re-refer to Capital Investment

lower

Mar 17, 2025

Introduced

Introduction and first reading, referred to Elections Finance and Government Operations

lower

1 primary · 2 co-sponsors