Minnesota investment fund local government loan repayment funds restrictions temporary modification

This bill allows Minnesota cities, counties, and towns to temporarily relax rules on how they must use money received from the Minnesota Investment Fund. Under the new provision, eligible local governments can transfer up to 20 percent of their unspent loan repayment funds to the state general fund by June 30, 2027, while using the remaining 80 percent for any legal local expenses. In exchange for this flexibility, affected entities must submit a detailed report by February 15, 2028, explaining how they used and distributed the funds. The changes take effect on July 1, 2026, and apply only to funds that have not yet been committed to specific projects.