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MnDOT Publishes Local Government Maximum Contribution for Shared Projects
Local governments can now review their updated cost-sharing maximums and policy changes for trunk highway projects under newly posted fiscal year 2028 guidelines.
The Minnesota Department of Transportation (MnDOT) has posted individual project maximums for fiscal year 2028 under its revised Cost Participation Policy, which reduces financial contributions required from cities for certain trunk highway projects.
Access a spreadsheet with individual project maximums for cities for 2028 (xls).
Cooperative construction projects may be initiated by MnDOT or by a local unit of government. The policy establishes a framework for determining local cost and maintenance responsibilities, as well as the potential expenditure of trunk highway funds. Project specifics are finalized through individual agreements between MnDOT and local units of government. It is important to note that the policy does not constitutes a legal entitlement, and MnDOT retains final authority on whether to participate any project’s cost.
Detailed guidance on applying the policy, maintenance responsibilities, cost-share calculations, and agreement procedures is available in MnDOT’s Cost Participation and Maintenance with Local Units of Government Manual (pdf).
Recognizing that cities, counties, and townships have different financial capacities to contribute to state highway construction projects, MnDOT limits local unit of government responsibility to no more than 0.8% of the municipality’s most recent five-year average adjusted net tax capacity.