Pending Legislation
Senate Bill 5005: Capital Investment
Introduced: Senator Sandra Pappas (DFL-65)
Summary: The bill is Minnesota’s transportation bonding bill with provisions being taken largely from fiscal year 2025’s budget.
Design-Build Impact: Money is allocated from the bond proceeds account in the trunk highway fund for construction, reconstruction, and improvement of trunk highways, including design-build contracts. Projects to construct, reconstruct, or improve trunk highways. his appropriation must follow eligible investment priorities identified in the Minnesota State Highway Investment Plan, and the commissioner may use up to 17 percent of the amount for program delivery, in what marks a continuation of transportation funds being allocated for design-build state road and highway construction projects within the state.
Last Action: April 9, 2026: The bill has been introduced and assigned to the SENATE committee on CAPITAL INVESTMENT. The bill has a Governor’s deadline of June 4.
Status: In Committee.
DBIA Position: Support
DBIA Priority Level: Medium
House Bill 3562: Motor Vehicle Tax Reduction
Introduced: Representative Patti Anderson (R-033A)
Summary: The bill decreases the percentage and amount of the state’s motor vehicle tax within the state. For vehicles registered before November 16, 2020, the tax will go from $10 plus 1.54 percent to 1.25 percent the percent of the manufacturer’s suggested retail price of the vehicle. For vehicles registered on or after November 16, 2020, $10 plus 1.575 percent to 1.285 percent the percent of the manufacturer’s suggested retail price of the vehicle. During the next ten years of the vehicle’s life, the percent of the manufacturer’s suggested retail price of the vehicle that is taxed will also decrease.
Design-Build Impact: The bill would drastically impact funding for the Highway distribution fund, town highway funds, and other transportation funds within the state. These funds would lose around $160 million in FY 2027 when this bill would take effect, and nearly $792 million for the next fiscal biennium. This would severely impact a number of current and future design-build projects that MnDOT and its highway funds were and are planning to engage in within the years to come.
Last Action: March 31, 2026: The bill has been introduced and is currently within the HOUSE Committee on TRANSPORTATION FINANCE and POLICY, the bill failed to advance to the HOUSE Committee on WAYS and MEANS after a 7-7 tie vote. The bill has a Governor’s deadline of June 4.
Status: In Committee.
DBIA Position: Oppose
DBIA Priority Level: High
House Bill 2438: Transportation Appropriation
Introduced: Representative Jon Koznick (R-057A)
Summary: The bill establishes a budget for transportation and appropriates funds for transportation purposes, including funding for the Department of Transportation, Department of Public Safety, and Metropolitan Council activities through fiscal years 2026 and 2027.
Design-Build Impact: The bill will likely allocate funds towards the MnDOT, which will use some of the funds to further its various design-build projects
Last Action: May 27, 2026: The bill was introduced and referred to the HOUSE Committee on TRANSPORTATION and POLICY, the HOUSE Committee on TAXES, who reported do pass on the bill, and the HOUSE Committee on WAYS and MEANS who voted do pass as amended on the bill before it was amended on the HOUSE floor and passed into the SENATE last year. When the HOUSE refused to concur on the SENATE amendments the bill went into CONFERENCE Committee. The CONFERENCE Committee’s report was adopted by both the HOUSE and the SENATE on May 17, 2026, and the bill was sent to the Governor. The Governor has signed the bill into law and it has been filed with the Secretary of State as Chapter No. 128. The bill has a Governor’s deadline of June 4.
Status: Signed into Law
DBIA Position: Neutral
DBIA Priority Level: Medium
House Bill 4935: Capital Investment
Introduced: Representative Brad Tabke (DFL-054)
Summary: The bill is Minnesota’s transportation bonding bill with provisions being taken largely from fiscal year 2025’s budget.
Design-Build Impact: Money is allocated from the bond proceeds account in the trunk highway fund for construction, reconstruction, and improvement of trunk highways, including design-build contracts. Projects to construct, reconstruct, or improve trunk highways. his appropriation must follow eligible investment priorities identified in the Minnesota State Highway Investment Plan, and the commissioner may use up to 17 percent of the amount for program delivery, in what marks a continuation of transportation funds being allocated for design-build state road and highway construction projects within the state.
Last Action: April 13, 2026: The bill has been introduced and assigned to the HOUSE committee on RULES and LEGISLATIVE ADMINISTRATION. The bill has a Governor’s deadline of June 4.
Status: In Committee.
DBIA Position: Support
DBIA Priority Level: Medium