Statutory authority elimination for state agencies to retain grant amounts for administrative costs

SF 3064 repeals Minnesota Statutes section 16B.98, subdivision 14, which allowed state agencies to retain up to 5% of formula grant funds or up to 10% of competitively awarded grant funds for administrative costs. This bill directly affects state agencies that manage federal or state grant programs, requiring them to spend all grant funds on program activities rather than administrative expenses. The repeal eliminates this specific authority for new grant programs enacted on or after July 1, 2023, and applies to all other grant programs managed by state agencies. It removes a longstanding provision that permitted agencies to use a portion of grant funds for overhead costs.