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Focus on New Laws: Maintenance Question Added to State Bonding Applications
Local government projects seeking inclusion in the governor’s bonding recommendations will now be asked whether they have financial plans in place for ongoing infrastructure maintenance and preservation.
During the 2026 legislative session, the Legislature amended statutes outlining the information Minnesota Management and Budget (MMB) must gather about local infrastructure vying for state capital funding through the governor’s proposed budget.
This change resolves a six-year legislative effort to place financial planning and reserve account obligations on local governments in order to be eligible for state infrastructure funding. Instead, the new law requires applicants to answer a straightforward, yes-or-no question about whether they have a plan for maintaining and preserving their proposed projects.
New question on MMB application
Under Minnesota Statutes, section 16A.86, subdivision 3a(7), local project applications must now indicate “whether the political subdivision has a plan for maintenance and preservation of the project, including safety and security, maintenance and utility costs, availability of repair parts and materials, sustainability, and any other criteria the political subdivision deems relevant.”
The new language will appear on the MMB application starting Jan. 1, 2027.
Legislative review may go further
If a city has a maintenance plan, it only needs to check the box next to that question. No further details are required for the application.
However, cities should be anticipate that lawmakers might request more budgetary details during legislative reviews — particularly for projects heard individually by the capital investment committees or included in the governor’s local projects budget.
Funding programs exempted from the new MMB rule
Projects seeking assistance through other state infrastructure funding programs, like those managed by the Minnesota Public Facilities Authority, Minnesota Department of Employment and Economic Development, and the Minnesota Department of Transportation are not required to go through MMB’s capital budget process. Those financial situations continue to be evaluated through the specific criteria of their respective programs.