Federal funding uncertainty complicates Minnesota planning; state reports $12.3 billion in awards tracked

Federal budget actions, administrative funding freezes and litigation are creating uncertainty for Minnesota projects funded by the Infrastructure Investment and Jobs Act, the Inflation Reduction Act and CHIPS, a National Conference of State Legislatures official told the House Capital Investment Committee on March 18.

Brian Wankel, senior legislative director for budgets and revenue at NCSL, said states face “a massive collision of initiatives” — reconciliation, executive funding freezes, tax changes and the debt limit — that together could slow or alter funding that reaches states. “All this is creating uncertainty for states,” Wankel said, advising legislatures to plan contingencies in case federal funds arrive late or are rescinded.

Minnesota Management and Budget officials told the committee the state is actively tracking federal awards and preparing to support local governments and other entities in pursuing funds. Anna Menge, assistant commissioner and state budget…