MnDOT Opens Applications for Local Road Improvement Grants

The Local Road Improvement Program provides funding assistance to local agencies and federally recognized Indian Tribes for road construction, reconstruction, or reconditioning projects.

The Minnesota Department of Transportation (MnDOT) opened the solicitation process on Sept. 1 for grants through the Local Road Improvement Program (LRIP). The program provides funding assistance to local agencies and federally recognized Indian Tribes for construction, reconstruction, or reconditioning projects.

The 2026 capital investment bill provided $50 million in LRIP funds. Grants will be awarded on a competitive basis. Applications are due by Nov. 25, 2026.

Access information about the MnDOT 2026 LRIP solicitation process.

MnDOT anticipates announcing LRIP selections by the end of March 2027, although the exact date will depend on the number of applications received. Based on direction from the LRIP Advisory Committee — a board made up of local government representatives including two League appointees — the maximum grant award is $1.5 million for counties, state-aid cities, nonstate aid cities, townships and federally recognized Indian Tribes.

Eligibility and evaluation

Access all application materials and evaluation criteria on the LRIP website. Note these important guidelines from MnDOT:

• Projects that have received legislatively selected appropriations, also known as earmarks, or previous LRIP grants, are not eligible for funding under this solicitation.
• Projects that will be awarded and/or under construction before the anticipated LRIP selection notifications in March 2027 are not eligible for funding under this solicitation.
• Projects should be noncontroversial and construction ready in 2027, 2028, or 2029.
• County applications will be evaluated against other county applications; state-aid city applications against other state-aid city applications; and small city, township, and federally recognized Indian Tribe applications against applications from those same types of agencies. MnDOT anticipates funding projects from all three agency types.
• Improvements must have an expected useful life of at least 10 years. Maintenance activities, such as filling potholes, blading gravel roads, and standalone ditch repairs, are not eligible for LRIP funding.
• Eligible items for LRIP funds include reasonable elements associated with roadway construction, including basic landscaping and turf establishment. Landscaping planters, benches, bike racks, decorative fences, ornamental lighting, and other aesthetic treatments above the standard are generally not eligible. Other ineligible items include engineering, construction administration and inspection, right of way acquisition, and water main, sanitary sewer, or private utility work.
• LRIP funds cannot be used for improvements on the trunk highway system, including costs that might be required from a local agency on a trunk highway project under MnDOT’s cost participation policy.

County sponsorship

Consistent with previous solicitation requirements, state aid will require counties to sponsor projects on township and non-state aid city roads. This requirement is intended to provide engineering, plan development, contract administration, and grant agreement expertise to townships and small cities. It will also help ensure that improvements are made on time and within budget.

Townships and small cities should contact with their county engineer about potential applications.

For more information

For more questions or information, contact Rashmi Brewer, MnDOT state programs engineer for State Aid for Local Transportation, at [email protected].

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