Minnesota directs trust fund money to projects and community grants

The law provides $28.18 million for community grants. The money goes to the commissioner of natural resources for grants under section 116X.03. The commissioner awards grants as required by Minnesota Statutes, section 116X.03. This is a one-time appropriation, and chapter 116P does not apply to it or projects it funds. The appropriation is for fiscal year 2027 and is available until June 30, 2030.

The law sets grant caps and oversight, payment, and reporting rules for grants under section 116X.03. A grant may be up to $2 million for trail maintenance or $750,000 for another purpose. The trail cap limits the total awarded to one recipient in a grant cycle for work on the same trail. A grant is generally paid back after the recipient spends the money. The commissioner may approve an advance if the recipient has an approved surety bond or fiscal agent. For grants under $50,000, the commissioner must assess risk and reconcile spending for a sample before final payment. For grants of $50,000 or more, the commissioner must make an unannounced in-person visit before final payment; smaller grants are monitored through a yearly sample. Recipients must send quarterly progress reports until all grant money is spent and the grant terms are met. The grant caps expire June 30, 2028. Reports continue until grant funds are spent and terms are met; required checks and visits take place before final payment.

The law allows the commission to recommend an account for unexpected issues and sets rules for spending its money. The Legislative-Citizen Commission on Minnesota Resources may recommend establishing the account in its legislative bill. Money may address only an immediate threat to public health, the environment, or natural resources, through a state agency or a contract directed by one. Money cannot fund a capital construction project or a project rejected in the most recent funding cycle or included in a bill introduced in either of the last two regular sessions. At least 12 commission members must vote yes on a recommendation. The governor must approve spending, and legislative committee leaders must be notified. Recipients must report how they spent the money and what results they achieved. Recipients must submit a final report to legislative committee leaders; the provision sets no deadline.

The law extends the time available to use money for listed earlier projects. The extensions cover ten projects funded under laws from 2021 through 2023, plus a separate Minnesota State Trails Development project funded in 2023. The ten listed appropriations are available until June 30, 2027; the Minnesota State Trails Development appropriation is available until June 30, 2028.