Federal funding freezes and reconciliation create uncertainty for Minnesota projects, NCSL official tells capital committee

Brian Wankel, senior legislative director for budgets and revenue at the National Conference of State Legislatures, told the Minnesota House Capital Investment Committee on March 18 that a collision of federal actions has created “uncertainty for states” about funding that could affect fiscal 2026 program flows.

Wankel said the uncertainty stems from concurrent federal budget reconciliation, executive-branch funding freezes and possible tax-law changes tied to discussion of extending the 2017 Tax Cuts and Jobs Act. “This is creating uncertainty for states,” he said, and noted that the Office of Management and Budget’s initial memo implementing funding freezes produced confusion when agency portals were shut and then the memo was withdrawn.

Why it matters: Committee members said the uncertainty has real consequences for Minnesota projects that expected federal awards. Chair…