Legislative Update -
By Barb Thoman
It was a tough legislative session for intercity passenger rail, especially the Northern Lights Express project, and funding for public transit – especially in Greater Minnesota. Progress was made on AAMN’s corridor priorities, and thankfully, future Borealis operating support wasn’t cut.
A bill to further expand passenger rail - During the session, AAMN worked with Sen. Scott Dibble and Rep. Erin Koegel to introduce Senate File 2887/ House File 3176. The bill directs MNDOT to prepare federal corridor ID grant applications for two corridors: Saint Paul to Fargo/Moorhead and the Twin Cities to Kansas City. AAMN will work in future sessions to get a hearing and to work toward adoption. The bill will have the same bill numbers for the 2026 session.
Borealis cuts not adopted - The House had proposed clawing back nearly $9 million in previously allocated operating funds for the Borealis in FY2027/28. Fortunately, this measure was dropped in the reconciliation process. AAMN sincerely appreciates the calls and emails in opposition made by our members and friends in response to our action alerts.
Some background: With budget deficits looming into the future, all areas of Minnesota’s budget faced reductions. In March, the DFL party, which controls the Governor’s office, the Senate, and co-leads the House, agreed on reduction targets for each area of the state budget – nearly $1.2 billion overall for the biennium.
Northern Lights Express - Early in the session, the future Northern Lights Express passenger rail service (Twin Cities to Duluth) took a huge hit - $77 million in previously allocated funding was cut to pay for unemployment insurance for seasonal school workers. The $77 million cut will not impact construction for NLX. What it does mean is that MnDOT will not be able to acquire new equipment for NLX as previously planned. In future sessions, the funding could be restored in a bonding or transportation bill.
Making the cuts required by leadership - In March, each budget committee was given its target for the FY2026/27 biennium and the following biennium. The target for transportation was a reduction of $115 million. In the special session, legislators cut $61.4 million from metro area transit, $22 million from greater Minnesota transit, $3 million for Safe Routes to Schools, and made other reductions to meet the target.
Why not cuts from road funding? Roads owned by MnDOT receive little money from the state general fund. There are three constitutionally dedicated revenue sources for state roads and that money can’t be cut. Transit revenue is not as secure. When there is a budget shortfall, transit historically has taken a hit as it did this session.
Let us know if you want to help.
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AAMN plans to do corridor outreach this summer and legislative advocacy during the 2026 session. We hope to get a hearing and bill adoption in both legislative bodies in 2026.
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