Restrictions on use of Minnesota investment fund local government loan repayment funds temporarily modified, and report required.

This bill allows Minnesota cities, counties, and towns to temporarily relax rules on how they must use money from local government loan repayments. Under the new provision, eligible local governments can transfer up to 20 percent of these funds to the state's general treasury by June 30, 2027, while keeping the remaining 80 percent for any legal local spending. In exchange for this flexibility, any jurisdiction that chooses to move funds must submit a detailed report explaining how the money was used by February 15, 2028. The changes take effect on July 1, 2026, and are intended to provide a one-time opportunity for local entities to redirect uncommitted repayment funds.