DNR outlines FY26-27 budget with new gas permitting program, fee increases and park operating request

The Minnesota Department of Natural Resources presented the governor's FY26-27 budget recommendations to the Senate Committee on Environment, Climate and Legacy on Feb. 27, detailing new regulatory staff for gas development, one-time legal and public-safety supplements, and fee increases intended to shore up long-running program shortfalls.

Commissioner Sarah Stromman said the package “reflects the broader theme of his overall budget, which is a need to balance the state budget during a time of fiscal constraint while providing critical investments that contribute to a high quality of life in Minnesota.” She told the committee the DNR's proposed biennial budget covers roughly $1.5 billion across all DNR funds and focuses limited new spending on critical priorities.

Why it matters: The request would create new regulatory capacity to implement temporary and permanent frameworks for onshore gas extraction, add staff to address rising legal and emergency response costs, and raise certain fees that now subsidize general-fund spending in areas such as aquatic invasive species (AIS) response and groundwater permitting.

Key proposals and details - Gas permitting and leasing: Following recommendations from the Gas Resources Technical Advisory Committee…