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Gov. Tim Walz Unveils 2025 Capital Investment Plan
With the Legislature failing to pass a 2024 capital investment bill to provide for critical public infrastructure, the importance of passing funding this year is magnified.
On Jan. 23, Gov. Tim Walz announced his 2025 Infrastructure Plan, his capital investment recommendations for this legislative session. After downward adjustments to account for the state’s projected budget, the debt capacity available for issuing state bonds has decreased from $830 million to $790 million.
View Gov. Walz’s 2025 capital investment recommendations.
Details of the proposal
The governor’s proposed spending package would borrow $790 million in general obligation bonds and use $97 million in trunk highway cash. $400 million of the proposal is dedicated to asset management to maintain and renew existing state properties, including $206 million for Minnesota State Colleges and Universities and the University of Minnesota to repair and renovate buildings.
Other proposed investments include:
- Water and wastewater systems and transportation: $83.6 million would be used for water and wastewater infrastructure, including $104 million to support grants and low-interest loans, and $8 million for a new grant program to help remove contaminants like PFAS (perfluoroalkyl and polyfluoroalkyl substances) from drinking water.
- Economic development: $4.5 million for public infrastructure related to economic development.
- Public safety: $195 million would be used for public safety and corrections projects, including expanding laboratory and investigatory capacity for the Bureau of Criminal Apprehension and planning for a Minnesota State Patrol headquarters.
- Housing and child care: $7 million would be dedicated to rehabilitating public housing and $2.7 million to construct and renovate early childhood facilities.
- Other infrastructure: $40 million for unspecified local government projects.
Just a starting point
The governor’s proposal marks a starting point to what is likely to be a lengthy process to produce a 2025 capital investment bill. The House and Senate are both likely to unveil bonding packages, and differences with Gov. Walz’s plan will have to be negotiated.
Uphill climb
Bonding bills require a three-fifths majority (60%) to pass the Legislature, so leaders will have to work for bipartisan support to reach final passage of a capital investment borrowing package. That agreement never happened in the 2024 session. Expect final negotiations on a bonding bill to last until the very end of the 2025 session. It typically is one of the last bills passed before the Legislature adopts a final budget and tax plan.
Advocating for your city’s specific projects
Although the League does not weigh in on individual city bonding provisions, its Intergovernmental Relations (IGR) team is here to help city officials navigate the advocacy process at the Capitol.
If you are planning a visit to St. Paul to champion your city’s bonding request(s), be sure to take advantage of the League’s free parking provided to member city officials. If you do park at the League, please check in at the reception desk.
If you have questions about where to go or how to interact with legislators, contact any member of the League’s IGR staff before your visit or when you arrive.