Metropolitan Council adopts long-term transit funding allocation and passes 2025 budget amendments; chair announces interim leadership

The Metropolitan Council on Sept. 10 adopted a revised transit funding allocation policy, approved a 2025 unified budget amendment that reallocates federal and local dollars and adds capital funding for transit projects, adopted the 2026–2029 Transportation Improvement Program and several housing and land‑use actions, and heard the announcement that Council member Deb Barber will serve as interim chair.

The council voted to adopt FM12‑3, the updated transit funding allocation policy, which sets how federal, regional sales tax and other funds will be distributed among Metro Transit and suburban transit providers and increases federal allocations to the University of Minnesota transit system. Council members said the policy gives suburban providers and Metro Transit long‑range predictability and noted the policy reflects a projected combined $3.8 billion in funding to suburban providers from 2026 through 2050 and an approximately 11% increase above current projections.

Why it matters: Council members and staff said the allocation policy provides a predictable 25‑year framework that will let transit providers develop 2026 budgets and capital plans. Council member Deb Barber, who presented the item, said adopting the policy “enables transit providers to develop 2026 budgets and future capital plans based on clear policy direction and increased certainty for future funding levels.” Several council members urged continued attention to transparency and administrative cost questions raised by some suburban providers.

The council also approved a joint amendment to the 2025 unified budget (business item 2025‑194). Council staff described a set of operating and capital moves that include increasing the amount available for federal Housing Choice Voucher pass‑through funds by $5,000,000; moving $1,200,000 currently in MTS contracted services operating budget into the capital budget while bringing $1,200,000 in federal capital funds into the operating budget; authorizing $1,900,000 for a new community tree‑planting program using parks and trails legacy funds; and adding $20,000,000 for a Metro Transit material management storage facility and $12,000,000 for Gold Line Phase 2 in the capital budget. The motion to authorize the amended 2025 unified budget passed.

Also on the agenda, the council adopted the 2026–2029 Transportation Improvement Program (TIP), a four‑year multimodal program of federally funded highway, transit, bicycle and pedestrian projects that the council said totals about $6.2 billion and was developed to be consistent with the council’s Transportation Policy Plan. TAB conducted a 45‑day public comment period and submitted a public comment report with eight comments.

Other formal actions included: - A determination of adequacy for the Metro Blue Line Extension supplemental final environmental impact statement, a procedural step concluding the project’s environmental review and paralleling the Federal Transit Administration’s amended record of decision issued Aug. 11, 2025. The council’s action allows final design and permit preparation to proceed as appropriate. - Adoption of the Community Development Committee recommendations to approve a comprehensive plan amendment for the city of Bayport that reguides roughly 10 acres from single‑family estates to institutional for a planned elementary school, extends the metropolitan urban service area for regional wastewater, and changes the community designation from rural residential to suburban. - Awards under the Livable Communities Act predevelopment and policy/program grants: staff described awards intended to support up to four redevelopment sites and seven policy or affordable housing programs; staff said the program actions would support construction and preservation of both rental and for‑sale affordable housing and rehabilitation of community space for American Indian organizations.

Council members emphasized implementation and oversight. Several members thanked staff and legislative partners for the 2023 revenue package that established the dedicated regional sales tax for transit, which council Chair Charlie Zelle said created a “stable, dedicated source of funding and an opportunity to modernize our transit system for generations.”

During the meeting Chair Charlie Zelle also recognized legislators and longtime transit advocates — including Senator Scott Dibble and Representative Frank Hornstein — with the council’s Regional Leadership Award. Zelle announced that Deb Barber has agreed to serve as interim chair while the governor’s office continues the process of naming a permanent successor.

Votes at a glance (motions recorded in the meeting minutes): - Adopt transit funding allocation policy FM12‑3 (direction to staff to develop implementation procedures): adopted. - Authorize the 2025 unified budget as amended (business item 2025‑194): approved. - Determine adequacy of the Metro Blue Line Extension supplemental FEIS: approved. - Adopt the 2026–2029 Transportation Improvement Program: adopted. - Approve Bayport comprehensive plan amendment (item 2025‑221): approved. - Award Livable Communities Act predevelopment and policy/program grants (item 2025‑223): approved.

The council chair closed the meeting by thanking staff and council members for their work; the meeting record shows unanimous or majority approval on the motions taken and notes that Council member Lindstrom and Dr. Cederberg were absent for at least one roll call.

The council’s agenda materials and the business items referenced in the meeting contain tables and attachments (tables 9 and 11 were cited for specific project and change details) with project‑level descriptions and dollar amounts; council staff urged members and the public to refer to those attachments for the full lists of projects and line‑by‑line funding moves.

The Metropolitan Council meeting record shows these items now proceed to the implementation steps described in the council motions, including staff procedures for the allocation policy, final design work for projects with completed environmental review, and program administration for housing grants.