Cash bonding bill focuses on employment and economic development projects

A $46.47 million cash law supports projects across the state with a focus on projects from the Department of Employment and Economic Development.

However the law only calls for $28.7 million in new spending because it has almost $17.77 million in cancellations from previous appropriations: North St. Paul community outreach facility, South St. Paul meat processing facility, Apple Valley transit station and $7 million in targeted grant programs.

Sponsored by Rep. Fue Lee (DFL-Mpls) and Sen. Sandra Pappas (DFL-St. Paul), the law takes effect July 1, 2026, unless noted.

HF2484*/SF2827/CH129

Employment and Economic Development

The law contains $18.98 million for the Department of Employment and Economic Development to appropriate:

• $10 million for predesign and design of updates and improvements to Grand Casino Arena in St. Paul;

• $2.25 million for environmental remediation activities and geotechnical soil corrections a public works facility in South St. Paul;

• $1.3 million for Neighborhood HealthSource to construct a new clinic in North Minneapolis;

• $1 million for design and construction of a city park at The Heights in St. Paul;

• $1 million for the Bridge for Youth to design and acquire land for a multiuse facility in Hennepin County;

• $1 million to construct a new Center for Communication and Development in Minneapolis;

• $630,000 for the Capitol Area economic development grant program;

• $500,000 for a renovation project at Haven for Heroes in Anoka;

• $400,000 for the Organization of Liberians in Minnesota to renovate their Brooklyn Park facility;

• $350,000 to expand a veteran’s memorial in Stillwater;

• $250,000 to build a regional shelter facility in Cambridge to provide comprehensive support services for families with children experiencing homelessness;

• $200,000 for the Gammelgarden Museum of Scandia for preservation and restoration purposes; and

• $100,000 for a veteran’s memorial in Ottertail.

Other Funds

The law also spends General Fund dollars in the following ways:

• $6.1 million to design the renovation of the existing water treatment plant in Apple Valley to address PFAS in the city’s drinking water supply;

• $4.5 million to Minnesota State: $3 million for systemwide demolition and $1.5 million for a legislative engagement center at Winona State University;

• $4.5 million to construct a water tower in North St. Paul;

• $2.9 million for local road improvement planning and a future Mississippi River crossing in Ramsey;

• $2.3 million for Department of Corrections’ asset preservation;

• $1.8 million for drinking water regionalization planning and assistance grants;

• $808,000 for predesign and design of a Dakota language immersion public charter school in Redwood County;

• $750,000 to erect signage along Truck Highway 610 that is designated as “Hortman Memorial Highway”;

• $650,000 for statewide drinking water contamination mitigation;

• $550,000 for administration of emergency shelter facility grants;

• $500,000 to furnish and equip a critical access dental clinic in Alexandria;

• $500,000 for installation of mobile radar infrastructure and equipment to enhance airspace and marine surveillance;

• $400,000 to acquire property and design a fire station in Medford;

• $400,000 for final design of an interchange at Trunk Highway 61 and County Highway 22 in St. Paul Park;

• $400,00 for improvements and repairs to the historic Pickwick Mill Dam in Winona County;

• $300,000 to construct wayfinding and interpretive signage for the Heroes and Heritage Interpretive Trail Loop in Dakota County; and

• $125,000 for an infectious waste study.

Article 2 of the law, effective May 28, 2026, contains miscellaneous policy, transfers, and appropriations. One provision is $800,000 from a 2023 law (amended in 2025) to implement the updated Capitol Mall Design Framework is to install a tribute recognizing Speaker Emerita Melissa Hortman, who was assassinated in June 2025. The tribute is to be incorporated into the design of a memorial garden on the State Office Building site.

Another provision transfers $3.8 million from the Workforce Development Fund in Fiscal Year 2026 to the General Fund to help the Minnesota Zoo address an operation deficiency.

And $2 million is appropriated in Fiscal Year 2027 from the State Airports Fund to construct an air traffic control tower and base building at the Duluth International Airport. The project received $5 million in the 2025 transportation law. And almost $1.27 million from the fund will be used to construct an air traffic control tower at the Mankato Regional Airport

Article 3 of the law, also effective May 28, 2026, modifies or cancels myriad previous appropriations by, for example, extending the appropriation deadline, updating the project description, and changing the name of the grantee.

HF2484* / SF2827 / CH129