Purpose

This bill makes targeted changes to state government funding. It updates how some aid accounts expire, cancels funding for a specific passenger rail project, reduces certain education aid in upcoming years, and provides a new one-time funding item to support unemployment aid for hourly workers during the summer term.

Main Provisions

• Expiration of aid accounts

  • Sets an expiration date for the affected aid account (June 30, 2027) and directs that any remaining balance be canceled to the general fund.

• Cancellation of a rail project appropriation

  • Cancels the appropriation set aside for the Minneapolis–Duluth Northern Lights Express intercity passenger rail project, effective when this section takes effect.

• Adjustments to Special Education Aid

  • Reduces appropriations for Special Education Aid for fiscal year 2026 by $683,000 and for fiscal year 2027 by $22,085,000 (amounts are taken from the available special education funding).

• General appropriations (Department of Education and Unemployment aid)

  • Subdivision 1: Department of Education – an amount is appropriated from the general fund for the department for the specified fiscal year (the exact amount is stated in the section but not spelled out in this summary).
  • Subdivision 2: Unemployment aid for hourly workers during the summer term
  • Creates a one-time appropriation of $100,000,000 for unemployment aid under the requirements of Minnesota Statutes section 124D.995.
  • This funding is expressly one-time and subject to the rules of the statute cited.

Significant Changes to Law

• Affected accounts expire earlier, with balances canceled to the general fund.
• A major rail project funding line is eliminated.
• Special Education Aid is reduced for two upcoming fiscal years.
• A new, one-time $100 million unemployment aid appropriation is created for hourly workers over the summer term, governed by existing unemployment aid rules.

Fiscal Implications (Highlights)

• Net reductions in education support (Special Education Aid) for fiscal years 2026 and 2027.
• Elimination of funding for a multi-state rail project.
• New one-time $100 million infusion for unemployment aid targeted at hourly workers in the summer period.
• Some appropriations are redirected or canceled to the general fund as part of the expiration provisions.

Effective Dates

• The expiration and cancellation provisions take effect as specified in the bill (effective upon section enactment for the rail project cancellation; expiration date for the aid account is June 30, 2027).

Relevant Terms

• 124D.995
• Unemployment aid
• Hourly workers
• Summer term
• Special Education Aid
• Department of Education
• General fund
• One-time appropriation
• Minneapolis–Duluth Northern Lights Express
• Intercity passenger rail project
• Expiration (aid accounts)
• Fiscal years 2026 and 2027
• Appropriations adjustments