Minnesota lawmakers under time crunch on transportation spending
Minnesota state lawmakers continue to work through a transportation-spending plan for roads, bridges and transit.
The House and Senate have approved differing plans to cover transportation spending for the next two years. The chambers now are tasked with reaching agreement before the end of the week on the omnibus budget bill.
Existing budget
The current biennium budget was touted at the time of its signing as marking the first instance since 2008 that transportation revenue increased.
Gov. Tim Walz approved the two-year transportation-spending plan with a mix of new and added taxes and fees.
The most notable change was indexing the gas and diesel excise tax rates. The rule allows for annual rate changes.
Retail delivery fees for many businesses were also added. Fees are collected on everything from Amazon deliveries to food deliveries.
Another provision routed vehicle repair and replacement parts purchases to the state’s road fund. Previously, the money was sent to the general fund.
The PASSED Transportation Budget Bill makes our highways, roads, and public transit
✅SAFER
✅SMARTER
✅More SUSTAINABLE
Republicans are cutting wasteful projects and delivering REAL results. @Jonkoznick👇 pic.twitter.com/VTI4vCEasc— MN House Republicans (@mnhousegop) April 30, 2025
Transportation-spending proposals for roads, bridges and transit
Under consideration for the upcoming budget are distribution amounts for roads, bridges and transit.
House lawmakers approved a plan to put more money into roads and bridges and less into transit.
The House version of HF2438 would allot $3.26 billion for state roads. Local roads would receive another $1.4 billion.
The Interstate 535 Blatnik Bridge project in Duluth, Minn., would get the largest chunk of funding – $650 million. The project is touted to improve safety and better accommodate oversize and overweight loads.
The biggest reduction in funding for the next biennium would be for Metropolitan Council transit system operations. The transit system budget would be trimmed by $40 million.
Senate lawmakers approved a budget proposal that preserves full funding for transit throughout the state, as well as an increase for state road construction and maintenance.
Sen. Scott Dibble, D-Minneapolis, said the budget does what Minnesotans expect out of a safe, reliable transportation system.
“This budget is a responsible balance of spending cuts and funding increases that prioritizes core services, while aligning state policy to better reflect the needs of our modern transportation system,” Dibble said in prepared remarks.
Additional budget provisions
Other provisions in the House transportation-spending version include making driver’s license renewal and duplicate issuance available online. Although the provision is omitted from the Senate version, the governor included the proposal in his budget.
House lawmakers also backed including as a reason for possible license revocation driving 35 mph over the speed limit.
The two bodies have agreed to increase the surcharge on all-electric vehicles. Unchanged since 2021, the $75 surcharge would increase to $200. Hybrid vehicles would begin paying a $100 surcharge.
Both chambers also want to extend the valid length of time for a commercial learner’s permit from six months to one year.
The House and Senate have been tasked with reaching agreement on the transportation budget before the Legislature adjourns for the year on Monday, May 19. LL