Purpose of the Bill

This bill aims to provide financial support to local governments in Minnesota. It establishes a grant account to help cover certain costs associated with compliance or conflicts arising from federal executive orders.

Main Provisions

• Local Government Legal Grant Account: The bill creates a special account to fund grants for local governments, including counties, cities, townships, and school districts.

• Funding Source: An initial amount of $10 million is to be transferred from the state's budget reserve into this grant account.

• Grant Allocation: The funds will be used to make grants to local governments on a first-come, first-served basis.

• Eligible Costs: Grants can reimburse costs related to:

  1. Continuing special education services.
  2. Implementing programs to reduce disparities.
  3. Challenging federal censorship or segregation orders.
  4. Upholding state laws conflicting with new federal executive orders effective after January 19, 2025.

• Grant Limit: Each local government can receive a grant of up to $500,000.

• Unused Funds: Any leftover funds in the grant account by July 1, 2026, will be returned to the state's budget reserve by July 15, 2026.

Significant Changes

The bill introduces a new mechanism for local governments to obtain state-funded assistance in dealing with potential legal and regulatory challenges stemming from federal directives. It shifts part of the financial burden from local to state resources for specific federal compliance issues.

Relevant Terms

• Local government grant
• Federal executive orders
• Budget reserve
• Special revenue fund
• Special education services
• Disparities programs
• Censorship orders
• Segregation orders