[ST. PAUL, MN] – In accordance with a statutory requirement that the Governor release his capital budget by January 15, Governor Tim Walz today announced his 2026 infrastructure plan. The $907 million investment will support public safety, clean water, transportation, and housing infrastructure Minnesotans rely on.

The proposed budget is dedicated to preserving existing state infrastructure (35%), supporting water and transportation projects (19%), investing in public safety projects (16%), and in affordable housing and local economic development (11%). The remaining funds support outdoor recreation and environmental projects and farmer loan assistance through the Rural Finance Authority and various other projects.

Priority projects include $61 million for the Department of Corrections Rush City Education and Program expansion and $47 million for the Bureau of Criminal Apprehension’s Bemidji Regional Office and Lab expansion. 

The proposal would be funded with $700 million in general obligation bonds and $207 million in other funding sources, including appropriation bonds, general fund cash, user-financed general obligation bonds, and trunk highway cash and trunk highway bonds. 

Public Safety 
Governor Walz continues to prioritize public safety and recommends $149 million in related investments. Based on recommendations of the Capitol Area Advisory Committee, that includes $41 million for security upgrades in and around the Capitol Complex, building on the $13 million previously appropriated since 2020. The plan also includes renovation and expansion of the Bureau of Criminal Apprehension Bemidji Regional Office and Forensic Science Laboratory as well as expanded education and other programming at the Department of Corrections’ Rush City facility.

Farmer Loan Assistance
The plan includes $50 million for Rural Finance Authority loans to help Minnesota farmers obtain affordable financing. 

State Infrastructure Preservation  
The 2026 infrastructure plan includes $316 million for preserving state infrastructure for state agency and higher education facilities. That number includes $150 million for improvements across the Minnesota State and the University of Minnesota campuses. 

Water and Transportation Infrastructure
The Governor’s recommendation includes $172 million for water and transportation infrastructure funding. That includes $113 million for water infrastructure grants and low interest loans. It also includes $50 million for high-priority highway pavement projects.

Affordable Housing and Economic Development  
The 2026 infrastructure plan recommends $99 million for affordable housing and economic development. That number includes $50 million in housing infrastructure bonds, $10 million in public housing rehabilitation grants to local governments, and $35 million for local projects. 

Outdoor Recreation and Environment  
The Governor recommends $52 million for outdoor recreation and environmental protection. Highlights include: $10 million for dam safety repairs to protect public safety, improve fish and wildlife habitat, and enhance the quality, availability and recreational value of the state’s waters; $9 million for grants to reduce flood risk by constructing levees, pumping stations, and multi-purpose flood impoundments; and $5 million for infrastructure upgrades to the Department of Natural Resources’ aviation facilities at the Brainerd Regional Airport, supporting emergency responses for wildfires, search and rescue operations, and other safety and natural resource management needs.