On March 13, 2025, the Minnesota State Legislature introduced Senate Bill 2520, aimed at mitigating the economic impact of construction projects on local businesses, particularly in St. Paul. The bill seeks to address substantial business impacts, defined as impairments to road access, parking, or visibility for businesses affected by construction for at least one month.

Key provisions of the bill include the establishment of a grant program administered by the commissioner of employment and economic development. This program will partner with nonprofit organizations and community development financial institutions experienced in economic development on St. Paul's east side. The grants will be awarded based on criteria such as revenue decline, construction duration, traffic disruption severity, and access for pedestrians and cyclists. Importantly, the funds can be used for employee payroll and operating expenses but cannot be allocated for bonuses or capital improvements.

The bill allocates $2.2 million from the general fund for fiscal year 2026 to support these grants. Additionally, it mandates annual reporting by the commissioner on the grants awarded, ensuring transparency and accountability in the distribution of funds.

Debate surrounding Senate Bill 2520 has highlighted concerns about the adequacy of the funding and the criteria for grant distribution. Some lawmakers argue that the bill may not sufficiently address the long-term impacts of construction on businesses, while others emphasize the necessity of immediate relief for affected entities.

The implications of this legislation are significant, as it aims to support local economies during disruptive construction periods, potentially preserving jobs and stabilizing businesses. Experts suggest that if implemented effectively, the bill could serve as a model for other regions facing similar challenges, fostering a more resilient economic environment.

As the legislative process continues, stakeholders will be closely monitoring the bill's progress and its potential to alleviate the burdens faced by businesses during infrastructure improvements.