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MnDOT to update cost-participation policy after stakeholder talks; report due Feb. 1, 2026
Summary
The conference committee retained a provision directing MnDOT to update its local cost-participation policy in consultation with stakeholders and report to the legislature by Feb. 1, 2026; city, county and township representatives testified about disproportionate local burdens.
The Transportation Conference Committee left in place senate language directing the Minnesota Department of Transportation to update its cost-participation policy for trunk-highway projects and to report back to the legislature by Feb. 1, 2026.
Senator Karin Jasinski — who has carried similar measures in past sessions — said the change responds to persistent concerns from cities, counties and townships that MnDOT’s long-standing, one-size-fits-all cost-share approach can impose disproportionate burdens on local governments. Testimony from city and county groups echoed that concern: Metro Cities, the League of Minnesota Cities, the Minnesota Association of Counties and the Minnesota Association of Townships urged a policy that considers a community’s ability to pay and regional context.
Speakers described a range of problems: municipal state-aid dollars diverted to trunk-highway cost participation, cooperative-construction agreements that arrive late in local capital planning, and projects where the community absorbs a large share of costs for improvements that mostly serve regional through traffic. Local engineers and city officials said those obligations can force delays to local maintenance or pressure property taxes.
MnDOT testified that it is currently conducting a stakeholder working group and expects to complete policy updates and provide a report by Feb. 1, 2026; department leaders said the work will consider statutory constraints and may identify potential statutory changes, including approaches to relocating locally owned utilities.
The committee did not adopt a statutory limit on local cost-sharing during the hearing but asked MnDOT to keep legislators apprised of progress. Local-government witnesses asked legislators to be prepared to pursue statutory fixes next session if MnDOT’s report does not sufficiently address their concerns.
Next steps: MnDOT will continue stakeholder discussions, finalize a policy update and submit a Feb. 1, 2026 report to the legislature; legislators signaled they may pursue statutory changes if the report falls short.
