PRESS RELEASE – City and union groups praise enhancements to water infrastructure funding programs

For Immediate Release   

April 9, 2024                                                                      

Contact: Alex Wildfang        
651-259-1917   
ahwildfang@flaherty-hood.com                                                                                                                      

City and union groups praise enhancements to water infrastructure funding programs

Legislation increasing grant caps for water infrastructure projects will strengthen municipalities and provide jobs.

ST. PAUL—Yesterday, the Minnesota Senate passed an omnibus jobs bill (S.F. 4027) that includes an increase in the amount of money that certain local government projects are eligible for when seeking water infrastructure funding. These provisions were proposed by Senator Grant Hauschild (DFL-Hermantown) and are supported by the Coalition of Greater Minnesota Cities (CGMC), LIUNA Minnesota and North Dakota, and IUOE Local 49.

“We are very grateful to Senator Hauschild and the omnibus bill’s author, Senator Bobby Jo Champion, for moving this proposal forward. Reliable and sustainable water systems are vital to cities’ infrastructure, and this legislation will not only help ensure our communities have access to safe drinking water but also ease the financial burden on our ratepayers,” said CGMC President and St. Joseph Mayor Rick Schultz.

The bill increases the maximum allowable grant for the Clean Water Revolving Fund and Drinking Water Revolving Fund from $5 million to $10 million, as well as raises the grant cap for the Point Source Implementation Grant (PSIG) program from $7 million to $12 million. These grant programs provide crucial funding for municipal clean water and water infrastructure projects, as local governments often must take on large loans to cover the costs of projects’ construction and other needs without state support.

“Costs for infrastructure projects continue to climb at an exponential rate, and the increase in state support will help prevent such large costs from falling entirely on cities’ residents and businesses,” said IUOE Local 49 Legislative Director John Pollard. “This legislation will also help promote workforce development as cities will be able to afford to move ahead on projects that provide numerous jobs.”

“Across Minnesota, our communities are grappling with urgent water infrastructure needs,” said Joel Smith, President and Business Manager of LIUNA Minnesota and North Dakota. “Minnesotans are counting on state leaders to take action now and every session going forward. LIUNA and fellow trades members are ready to overhaul our failing water infrastructure and ensure every community has access to safe, clean drinking water.”

Without increasing these funding limits, projects will become increasingly unaffordable, and necessary upgrades could be delayed, adding to the financial burden on communities while jeopardizing the health and water resources of communities statewide. The CGMC, LIUNA, and IUOE Local 49 are urging the Legislature to continue supporting these critical grant programs to safeguard our state’s water infrastructure.

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The Coalition of Greater Minnesota Cities is a nonprofit, nonpartisan advocacy organization representing cities outside of the Twin Cities metropolitan area. The Coalition educates legislators about issues important to Greater Minnesota. Visit the CGMC at greatermncities.org and follow us on Twitter @greatermncities.