MnDOT outlines trunk‑highway requests, Blatnik Bridge authority and aeronautics fee changes in governor’s budget

Minnesota Department of Transportation Commissioner Nancy Daubenberger told the House Transportation Committee the governor’s budget includes a set of trunk‑highway fund requests and several policy and language changes intended to match state authority with anticipated federal awards and to shore up long‑running capital and operational needs.

Why it matters: MnDOT’s proposals would change spending authority for federal formula dollars, add a separate appropriation vehicle for a large bridge project, restructure some aeronautics revenues and add recurring trunk‑highway spending for corridor planning, facilities modernization and workforce programs.

Daubenberger said the governor’s package includes eight items in MnDOT’s priority list and that six of those are funded from the trunk‑highway fund. Among the highest‑profile items she cited were:

- State road construction appropriation increase: MnDOT requested additional state authority to spend increased federal formula funds in the revised State Transportation Improvement Program (STIP), with an expected larger spending need in fiscal 2026 and formula levels thereafter.

- Blatnik Bridge spending authority: MnDOT asked for separate budget authority to manage the state’s share of a large INFRA grant tied to the Blatnik Bridge project. Commissioner Daubenberger said the authority will help track and manage the large, multi‑year bridge project alongside Wisconsin DOT and federal partners.

- Aeronautics revenue restructuring: MnDOT proposed raising the airline flight property tax level and increasing aircraft registration fees (a 15 percent registration increase was cited) to support the state airport fund after a decade of no adjustment. Daubenberger listed specific airports with needs including Rochester, Bemidji, Duluth, Brainerd Lakes, Thief River Falls, Falls International and St. Cloud.

- Corridor planning and MPO grants: the governor’s package would add trunk‑highway funding for statewide corridor planning (a $3 million base increase) and modest annual increases for metropolitan planning organizations, intended to better integrate land‑use and state highway planning.

- Recruitment, retention and facilities modernization: MnDOT seeks recurring funds to support organizational health and employee retention programs, additional HR and labor relations staffing, and $3.2 million for truck station facility modernization across the state.

Daubenberger told the committee MnDOT’s trunk‑highway fund was in sound condition and that some increases reflect federal awards the department must be authorized to match and spend. She also said the department is implementing a strategic workforce plan and cited the need to attract and retain staff in specialized trades such as snowplow drivers.

Committee members asked for examples and clarifications. Representative Lucy Ream asked what MPO planning grants produce in practice; Daubenberger said the grants support land‑use and transportation planning that aligns local plans with state highway project selection. Representative Patty Anderson asked whether the state road construction increase was the Met Council loan; the commissioner replied it was not — the state road construction increase is to match and spend additional federal funds in the STIP.

On extensions, MnDOT explained several existing appropriations require more time to spend — for example, an Upper Sioux conveyance and a slope remediation project that will let later this year, and unfinished work on the Borealis/Amtrak second daily train project that remains in progress.

Ending: Daubenberger said MnDOT stands ready to provide more detailed follow‑up on any item and that the department will return for further committee review as the session’s budget work proceeds.