HF2900

Purpose of the Bill

The bill aims to support local governments in Minnesota by establishing a grant program. This program is designed to financially assist local governments with costs associated with responding to federal actions, specifically those needing legal assistance.

Main Provisions

• Creation of a Grant Account: A special revenue fund called the Local Government Legal Grant Account will be established to support local governments.
• Funding and Transfer: On July 1, 2025, $10 million will be transferred from the state’s budget reserve account to the new grant account.
• Grant Distribution: These funds will be appropriated for the fiscal year 2026, enabling the Commissioner of Revenue to allocate grants to eligible local governments. School districts may also receive grants, through transfers facilitated by the Commissioner of Education.
• Eligibility and Application: Local governments, defined as counties, cities, townships, or school districts, can apply for grants to cover certain legal expenses. Grants will be allocated on a first-come, first-served basis.

Significant Changes

• Support for Legal Expenses: This program is specifically aimed at reimbursing legal costs related to certain federal executive orders. Eligible uses include continuing special education services, reducing disparities, challenging federal orders, or supporting state law conflicting with federal orders enacted after January 19, 2025.
• Grant Limits and Expiration: Each local government can receive a maximum of $500,000. Any leftover funds in the grant account by July 1, 2026, will revert back to the budget reserve account by mid-July.

Relevant Terms

local government grant, legal expenses, federal executive orders, special revenue fund, budget reserve, first-come first-served, reimbursement, special education services, disparities reduction, federal censorship, segregation orders, state law conflict.