MMB outlines $12.3 billion federal funds tracked, urges use of direct-pay tax credits and state match to unlock grants

Minnesota Management and Budget enterprise staff told the Senate Capital Investment Committee on Jan. 21 that the state is coordinating federal Infrastructure Investment and Jobs Act, Inflation Reduction Act and CHIPS Act funds and has identified roughly $12.3 billion in formula and competitive grant awards and allocations that will support about 1,800 projects across Minnesota.

The update is intended to give senators and local project sponsors a clearer picture of what federal money is available and how state match and new financing tools can be used to capture it, MMB enterprise director Leah Kory said.

Kory said the $12.3 billion figure combines funds already awarded and obligated plus federal formula allocation estimates through 2026 and excludes loans and tax credits. “For every state dollar we’ve invested, there’s a return of $7 in federal and private funds,” Kory said.

MMB officials outlined four staff work streams: strategy development, opportunity promotion and coordinated pursuit, tools and technical assistance, and monitoring and evaluation. Anna Ming, assistant commissioner and state budget director at MMB, joined Kory in answering questions from committee members about remaining match balances and the implications of a recent federal executive order that pauses some non-awarded payments.

Kory described several concrete program totals and examples. She said the largest portion of…