or 
lines to the right of the URL bar at the top of your browser
2026 City Aid Figures Announced
State agencies have released the 2026 certified local government aid amounts and the forecasted payments for the 2026 Small Cities Assistance Account and Larger Cities Assistance Account.
As cities prepare their 2026 budgets, state agencies recently released information about 2026 state aid programs for cities. The Minnesota Department of Revenue (DOR) posted the certified 2026 local government aid (LGA) amounts, and the Minnesota Department of Transportation (MnDOT) provided forecasted payments for the 2026 Small Cities Assistance Account and the Larger Cities Assistance Account.
Local government aid amounts
The total amount of LGA certified for all Minnesota cities in 2026 is $644 million; the same amount was certified in 2024 and 2025. In 2026, 747 cities will receive LGA and the aid will be paid by July 20, 2026 and Dec. 26, 2026.
View the DOR certified local government aid amounts for each city (pdf).
Small Cities and Larger Cities Assistance Accounts forecasted amounts
The Small Cities and Assistance Account is a program created in 2015 to provide funding for construction and maintenance of roadways in cities with a population less than 5,000. The aid in this account comes from the Transportation Advancement Account (TAA) and runs on a different certification timeline from LGA or similar state aid programs.
- Read more about the Small Cities Assistance Program (pdf).
- View the 2026 Small Cities Assistance Account forecast distribution by small city (pdf).
The Larger Cities Assistance Account is also part of the TAA, created in 2023. It provides funding to cities that are eligible to receive municipal state aid and is allocated based on population and needs. The payment is made annually in July. The TAA follows a May 1-April 30 certification timeline, which differs from both the city budget year and the state fiscal year. Because of this, MnDOT has released only the forecast for 2026 payments; final amounts will be certified in June 2026.
View the 2026 Larger Cities Assistance Account forecast distribution by larger city (pdf).
2026 forecast highlights:
- Small Cities Assistance Account projects nearly $15 million is projected to be distributed to 700 cities.
- Larger Cities Assistance Account projects just over $8 million to be distributed to 156 cities.
Use caution with 2026 forecasted payment information
Cities should use the 2026 Small Cities and Larger Cities Assistance Account payment estimates cautiously, as funding may decrease due to volatility in its revenue sources.
Unlike LGA, this program is not funded through direct legislative appropriation, but from the retail delivery fee on online purchases and sales tax on auto parts. For example, 2025 forecasted aid was higher than the amount certified in June 2025, resulting in lower payments than initially expected.