Gov. Tim Walz has introduced his $907 million infrastructure plan for the 2026 legislative session.

The plan dedicates 35% of the total funding to preserving existing state infrastructure, 19% to water and transportation projects, 16% public safety projects and 11% in affordable housing and local projects.

The Minnesota Legislature passed a $700 million bonding bill in the 2025 session. Lawmakers typically pass budgets in odd years and bonding bills in even years, but the Legislature has been off track for several years.

Walz’s proposal is a starting point. Caucuses will be able to introduce their own infrastructure plans during the session, and the proposals will then be negotiated by Walz and other state leaders.

A “bonding bill” refers to legislation that allows the state to borrow money by issuing bonds to fund public infrastructure projects. Bonding bills require a 60% supermajority vote, a higher threshold than the simple majority needed for most bills in the Minnesota Legislature.

No bonding bill in 2024

Last year, several labor unions and construction workers said projects and jobs were suffering due to a lack of a bonding bill in 2024. They also urged a focus on clean water investments, specifically those targeting phosphorus, manganese and per- and polyfluoroalkyl substances (PFAS), also known as “forever chemicals.”

A 2023 study by the Minnesota Pollution Control Agency said it would cost between $14 billion and $28 billion over 20 years to remove and destroy PFAS from wastewater streams across the state.

Joel Smith, the president and business manager of Laborers’ International Union of North America, Minnesota and North Dakota, released a statement shortly after the governor’s plan was released Thursday.

“Every year is the year to keep up our infrastructure. Governor Walz’s bonding proposal will continue to fix our crumbling roads, bridges, water infrastructure and public buildings. With more than $7 billion in local community and state agency requests, we urge the Legislature to pass a $1 billion bipartisan infrastructure jobs bill this Spring,” Smith said.

Details of Walz’s plan

Walz recommends $316 million for preserving state infrastructure for state agency and higher education facilities, including $150 million for improvements across the Minnesota State and the University of Minnesota campuses.

The plan recommends $149 million in investments for public safety. They include $41 million for security upgrades in and around the Capitol Complex, as well as two “priority projects” allocating $61 million for the Department of Corrections’ Rush City facility and $47 million for the Bureau of Criminal Apprehension’s Bemidji Regional Office.

It also recommends $172 million for water and transportation infrastructure, including $113 million for water infrastructure grants and low interest loans as well as $50 million for high-priority highway pavement projects.

Other proposals

Other investment proposals the governor’s office included:

• $50 million for Rural Finance Authority loans.

• $99 million for affordable housing and economic development.

• $52 million for outdoor recreation and environmental protection.

• $5 million for infrastructure upgrades to the Department of Natural Resources’ aviation facilities at the Brainerd Regional Airport.

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