State funds housing programs and backs freight rail loans

The state transfers money to the housing incentive fund for homeless programs and housing projects. The $10 million transfer is for homeless programs, and the $25 million transfer is for housing projects and programs. The Housing Finance Agency must distribute a $150,000 grant from the homelessness transfer to a Native American-focused organization present in multiple communities, for a homelessness liaison. The transfers take place during the budget period from July 1, 2025, through June 30, 2027.

The Bank of North Dakota provides loans for freight rail construction or upgrades. Counties, cities, railroads other than Class I railroads, and other freight railroad users may borrow to build or upgrade rail infrastructure to improve rail service. The Department of Transportation must approve each project before the Bank issues a loan. Applicants must provide reasonable assurance they can repay it. Class I railroads are not eligible. This provision gives no start or end date for the loan program.

The Bank of North Dakota transfers money from its earnings to the state and specified programs. The Bank transfers $140 million to the general fund, $60 million to economic development programs, $1.9 million to the University of North Dakota's Small Business Development Center for federal grant matches, and up to $5 million for a line of credit buydown for the Theodore Roosevelt presidential library project. The Office of Management and Budget director sets the amount and timing of the $140 million transfer to the general fund after consulting the Bank president. The library project buydown is capped at $5 million and cannot reduce the interest rate below two percent. The transfers take place during the budget period from July 1, 2025, through June 30, 2027.

The North Dakota Pipeline Authority may borrow more through a Bank of North Dakota line of credit. The authority may borrow up to $40 million in addition to its existing $60 million limit, for total borrowing of up to $100 million, for a pipeline project to carry natural gas from western to eastern North Dakota. The additional borrowing is available only if the authority enters a capacity purchase agreement for the project by December 31, 2026. The interest rate must match the rate charged to North Dakota government entities. The capacity purchase agreement must be in place by December 31, 2026.