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Committee presses agencies on security of recent federal grants and strain on state matching and debt capacity
Summary
MnDOT and budget officials told the Capital Investment Committee that many January federal grant announcements do not yet have signed grant agreements and that the state could face a shortfall in matching funds; MMB officials said prior trunk‑highway authorizations constrain state debt capacity under guideline 3.
Committee members used MnDOT’s appearance to press for clarity about whether recent federal grant announcements remain secure and what the state might owe if grants are paused or require payback.
Eric Rudine of MnDOT said program guidance on a few federal programs has changed, but as of Feb. 18 “the NEVI formula funds have continued to flow,” and he warned that it is projects for which funds have not been obligated that are most at risk. Rudine said roughly $4,000,000 in NEVI funds the state expected are now not expected to be received.
Rudin and other witnesses repeatedly distinguished an announcement from a fully executed grant agreement. Rudine explained that a press announcement of a grant award must be followed by a signed grant…
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