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2026 Legislative Session Creates New Grant Opportunities for Cities

July 14, 2026

View of brown folders, with focus on grants label, Concept of funding, 3D illustrationGrant funding can make a significant difference in a city’s ability to start and complete important projects.

The 2026 Minnesota legislative session established several new grant programs that may be of interest to cities. Below is a summary of each program, along with links to their administering agency’s grant webpage. Whether your city is planning infrastructure improvements, expanding housing resources, or investing in public safety, these new grant opportunities may help fund your next project.

Note that agency websites may not yet reflect these newly established grant opportunities.

Plan for regional drinking water improvements

Drinking water systems are costly and resource-intensive, but local governments can reduce costs and improve efficiency by regionalizing their drinking water systems. This grant program is administered by the Minnesota Department of Health and provides up to $300,000 in funding — with a 25% match required — to cities, townships, and counties planning for new or expanded regional drinking water systems.

Eligible expenses are limited to planning activities, including feasibility studies, assessments, and design work. Because annual funding is capped for each regional drinking water system or district, cities should coordinate with their regional partners before applying. The commissioner of health will develop an application process and selection criteria by Nov. 1, 2026.

Grant program: Drinking Water Regionalization Planning and Assistance Grant Program

More information: Grants and Loans: Open Grant Opportunities – MN Dept. of Health

Build or expand emergency shelter capacity

Cities interested in constructing publicly owned homeless shelters should consider applying for Emergency Shelter Grants issued by the Minnesota Department of Human Services. Grant funding may cover up to 100% of eligible construction costs.

Grant program: Emergency Shelter Grants

More information: Grants and RFPs / Office of Inspector General

Strengthen local housing support services

Cities that provide housing support for recipients of medical assistance home and community-based services may be eligible for Housing Support Capacity-Building Grants administered by the Minnesota Department of Human Services. These grants are intended to help prevent homelessness and institutionalization by providing financial assistance to housing support providers.

Municipal grant recipients may use funding for administrative expenses, assessment of eligible housing assistance benefits, housing transition assistance, and the development of regional or collaborative housing support models. Cities receiving funding must report data and project results to the commissioner of human services.

Grant program: Housing Support Capacity-Building Grants

More information: Capacity Building | Minnesota Housing

Improve clearance rates for violent crime investigations

Administered by the Minnesota Department of Public Safety, the Minnesota Clearance Grant Program aims to reduce violent crime by improving the clearance rate for nonfatal firearm shootings.

Law enforcement agencies may use funding for investigative resources, evidence-based policies and procedures, technical assistance, technology, employment of victim-witness coordinators, and partnerships with hospital-based violence intervention programs.

Priority will be given to law enforcement agencies that submit a detailed implementation and evaluation plan and demonstrate a commitment to working with other government agencies to improve clearance rates. Grant contract terms are negotiated annually, and participating agencies must submit a report to the commissioner of public safety twice each year.

Grant program: Minnesota Clearance Grant Program

More information: Grants | Minnesota Department of Public Safety

Upgrade Airport Radar Infrastructure

Cities that are part of an airport authority may apply for Radar Infrastructure Grants administered by the Minnesota Department of Transportation. Funding may be used for the acquisition, design, construction, and installation of mobile radar infrastructure and equipment for airspace and marine surveillance.

Grant program: Radar Infrastructure Grants

More information: Grant Opportunities – Grants – MnDOT

Need help applying for grants?

Cities seeking assistance researching, preparing, and submitting applications should consider the League of Minnesota Cities Grant Navigator program, which provides financial support to help cities navigating the grant application process.

The League’s Grant Navigator funding is ending in 2026; cities should apply as soon as possible to receive consideration.

For information about legislative changes to existing grant programs, review the League’s 2026 Law Summaries.