Purpose of the Bill

This bill aims to create a funding program to help local governments in Minnesota handle legal costs that arise from federal actions. It sets up a special account to distribute grants to cover specific legal expenses.

Main Provisions

• Creation of the Grant Account: A new account, called the local government legal grant account, will be established in the special revenue fund by the commissioner of management and budget.
• Funding Transfer: On July 1, 2025, $10 million will be transferred from the budget reserve account to the new grant account.
• Grant Distribution: The funds are appropriated for the fiscal year 2026 to the commissioner of revenue, who will manage the grant distribution process. The commissioner can also transfer money to the commissioner of education for grants to school districts.
• Application and Allocation: Local governments can apply for grants to cover eligible costs. Grants are awarded on a first-come, first-served basis, with a maximum of $500,000 per local government.
• Use of Grants: Grants are for reimbursing legal costs related to:
  1. Continuing special education services.
  2. Providing programs that reduce disparities.
  3. Challenging federal orders on censorship or segregation.
  4. Upholding state laws conflicting with federal executive orders effective after January 19, 2025.

Significant Changes to Existing Law

• Introduction of a structured grant system specifically for reimbursing legal expenses related to federal executive orders.
• Establishes a financial mechanism for local governments to recover costs incurred due to conflicts with federal mandates.

Relevant Terms

local government grants, federal executive orders, special education services, disparity reduction programs, legal expenses reimbursement, budget reserve account, state and federal law conflicts.