Overview
Public infrastructure investment is foundational to Minnesota’s economic stability, community vitality, and long-term competitiveness. Engineering firms play a central role in designing and delivering the transportation systems, public facilities, water infrastructure, and development-supporting projects that sustain the state.
The 2026 session produced a $1.24 billion capital investment package, the first even-year bonding bill to pass since 2018. Our infrastructure advocacy now turns to implementation and to the structural funding questions the session left unresolved.
ACEC Minnesota engages with Minnesota legislators, agency leadership, local government partners, coalitions, and national engineering organizations.
Why infrastructure policy matters
Engineering firms make hiring, capital, expansion, and other operating decisions based on:
Predictable funding levels
Clear bonding structures
Transparent delivery expectations
Reliable approval pathways
When capital programs become uncertain or constrained by policy misalignment between state and local governments, project timing and market opportunity become less predictable.
Infrastructure policy directly affects workforce planning and long-term investment decisions.
2026 session outcomes
The Legislature adjourned on time in May for the first time this decade. The capital investment package passed in the session’s final hours with broad bipartisan support, 122 to 11 in the House and 60 to 7 in the Senate. It authorizes $1.18 billion in general obligation bonds alongside $91 million from other funding sources. Outcomes that matter for consulting engineering firms:
Water infrastructure received the largest share, roughly $420 million, spanning Public Facilities Authority water and sewer programs, city project earmarks, PFAS treatment, and lead service line replacement.
Transportation received about $177 million, weighted toward local projects, including $47 million for the Local Road Improvement Program and $25 million for local bridge replacement.
Asset preservation received about $247 million, with $65 million for Minnesota State campuses and $40 million for the University of Minnesota.
A one-year reduction in motor vehicle registration taxes takes effect for calendar year 2027, backfilled by a $254 million general fund appropriation.
No transportation omnibus bill passed, and data center energy and water legislation was debated but not enacted.
The package directs work to agencies and communities across the state over the next several construction seasons. Member firms should expect solicitation activity to build as agencies program these funds.
Looking ahead
Between now and the 2027 session, ACEC Minnesota’s infrastructure advocacy focuses on:
Tracking agency implementation of the 2026 capital investment package and the timing of project solicitations.
Advocating for structural transportation funding. A one-time general fund backfill of registration tax revenue does not resolve the long-term sustainability of the Highway User Tax Distribution Fund.
Monitoring federal surface transportation reauthorization. The House Transportation and Infrastructure Committee approved the BUILD America 250 Act (H.R. 8870) on May 22 by a 62 to 2 vote. The Senate has not released its proposal, and the current authorization expires September 30, 2026.
Preparing 2027 legislative priorities with member input through our committees this fall.
ACEC Minnesota supports balanced state–local coordination that allows communities to advance infrastructure investments consistent with regional planning and economic conditions.
QBS & procurement policy
We reinforce statutory alignment with QBS principles, support procurement modernization, and promote risk-balanced contract frameworks.
Read this priorityProfessional licensure protection
We monitor statutory changes, protect title distinctions, and support modernization that maintains public trust and professional accountability.
Read this priority