On April 28, 2025, the Minnesota House of Representatives passed an omnibus transportation finance bill that significantly reshapes how the state invests in its transportation infrastructure. The bill, House File 2438, prioritizes funding for road and bridge construction while cutting back on support for mass transit. It passed the House by a vote of 85-49 and now heads to the Senate for further consideration.
Introduced by Rep. Jon Koznick (R-Lakeville), who co-chairs the House Transportation Finance and Policy Committee, the bill authorizes $476.57 million in General Fund spending for the 2026-2027 biennium. Despite this sizable allocation, the legislation meets the state’s goal of avoiding any net increase in General Fund transportation spending. Koznick described the proposal as a “balanced bill,” emphasizing its focus on environmental and fiscal sustainability and its alignment with how Minnesotans prefer to travel.
“We’re pulling the plug on some failed projects,” Koznick said. “And it’s a bipartisan bill that includes about 16 GOP provisions, 14 DFL and most of the governor’s provisions.”
Where the Money Is Going
The bulk of the funding is directed toward enhancing the state’s road infrastructure. The largest line item is a $650 million allocation for the replacement of the aging Blatnik Bridge in Duluth, followed by $454 million for general state road construction. A newly introduced resilient pavement program will receive $50 million, while $40.8 million is set aside for an interchange project at Interstate 35W and County State Aid Highway 50 in Lakeville.
Other notable funding includes:
$30 million for the Corridors of Commerce program
$30 million for transportation economic development
$22.86 million for state road operations and maintenance
$12.7 million to establish a transportation project activity portal
$11.41 million for State Patrol recruitment and hiring
Cuts to Transit and Safety Programs
In stark contrast to the increased funding for roads, the bill proposes significant reductions in mass transit funding. The Metropolitan Council’s transit operations face a $40 million cut, while Greater Minnesota transit services will lose $12 million. Additional cuts include $6 million from the Office of Traffic Safety’s Drug Program and $4 million from active transportation initiatives. A $1.83 million transfer from the Metropolitan Council into the General Fund is also included.
Notable Policy Changes
The bill includes a range of policy updates that touch on driver licensing, vehicle regulations, and infrastructure programs. Among the most impactful changes is a provision allowing Minnesotans to renew their driver’s licenses online—a move expected to improve efficiency and access. Driving 35 mph over the speed limit is added as a new ground for automatic license revocation.
Other updates include:
Raising the annual surcharge on all-electric vehicles to $200
Extending temporary permits for vehicles purchased by nonresidents from 31 to 60 days
Revising dealer licensing requirements
Enhancing accountability for unpaid vehicle insurance claims
Introducing new ATV seat belt rules
Increasing fees for missed road test appointments
Launching the new resilient pavement and transportation project portal programs
Debate and Amendments
While the bill received bipartisan support, several provisions sparked heated debate on the House floor. The most controversial issue was the bill’s delay in measuring greenhouse gas emissions from the transportation sector—a move criticized by many Democrats. Rep. Lucy Rehm (DFL-Chanhassen) warned that stalling climate accountability measures could have lasting consequences.
“Climate change is real,” Rehm said. “We can’t afford to go back, and we can’t afford to wait.”
Several amendments were proposed during the session, but only one passed. That amendment altered the funding and source of a grant aimed at suicide prevention on Minneapolis’ Washington Avenue Bridge. Three other amendments failed, including proposals to halve the EV surcharge, restore some transit funding, and remove delays in climate metrics implementation.
Despite mixed reactions, even some critics of the bill ultimately voted in favor of it. Rep. Erin Koegel (DFL-Spring Lake Park), co-chair of the House Transportation Finance and Policy Committee, expressed concerns about the bill’s backward-looking focus but acknowledged its merits.
“I think that this bill is not quite as balanced as we’d like to think,” she said. “But there’s value in the investments it makes, and it’s a step forward in some areas.”
Looking Ahead
With House approval secured, HF2438 now moves to the Senate, where further negotiations and potential revisions await. If passed, the legislation would mark a significant shift in Minnesota’s transportation priorities—one that favors infrastructure durability and vehicle mobility over expanded transit systems. The long-term impacts of these choices on climate policy, public access, and rural mobility remain to be seen.
As the state’s lawmakers debate the future of Minnesota’s transportation network, the question remains: Will cutting transit in favor of roads truly serve all Minnesotans, or does it risk leaving too many behind?
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