Trunk Highway 7 transportation management organization funding provided, and money appropriated.

2025-2026 Regular Session Introduced by Andrew Myers

One-time $200,000 general fund grant to Shorewood in FY2027 to support a transportation management organization along Trunk Highway 7, with funds limited to non-administrative oper

Introduction and first reading, referred to Transportation Finance and Policy

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Purpose of the Bill

HF 4488 proposes a targeted appropriation to establish and fund a transportation management organization (TMO) along Trunk Highway 7 in Minnesota. The bill specifies a onetime grant to cover operational activities for the TMO in the communities and school districts along the corridor, extending from the western border of Hennepin County to marked Interstate 494.

Key Provisions

Appropriation Amount and Term

The state general fund would provide a one-time grant of $200,000:
Fiscal year 2027 only.
The funds are for the City of Shorewood, designated to support a transportation management organization along Trunk Highway 7.

Scope of the Transportation Management Organization (TMO)

The TMO would operate along the Trunk Highway 7 corridor from the western boundary of Hennepin County to I-494.
The purpose is to coordinate transportation management activities within the corridor, including intervention in the cities and school districts along the corridor and connecting roadways.

Restrictions on Use of Funds

The bill explicitly states that, notwithstanding Minnesota Statutes § 16B.98, subdivision 14, none of the appropriated funds may be used for administrative costs. In other words, the money is limited to non-administrative operational activities related to the TMO.

Who Is Affected

City of Shorewood: Receiver of the grant and the primary administrator of the TMO activities.

Cities, School Districts, and Connecting Roadways along the Trunk Highway 7 Corridor: Beneficiaries of the TMO’s coordination and operational efforts.

Minnesota Department of Transportation (MnDOT): Receives and disburses the appropriation; responsible for administering the grant according to the bill’s constraints.

Procedural and Timeline Details

Introduction and Referral: HF 4488 was introduced and referred to the Transportation Finance and Policy committee on March 18, 2026.

Effective Date: The appropriation is a one-time funding measure for fiscal year 2027; there is no ongoing annual appropriation specified.

Budgetary Note: The funds are from the general fund and are not allowed to be used for administrative costs, which narrows the allowable uses to direct operational activities of the TMO.

Analysis of Impact

Provides a modest, targeted funding stream to support collaborative transportation management efforts along a specific highway corridor.

The restriction on administrative costs implies emphasis on programmatic/operational activities that facilitate traffic management, safety programs, traveler information, or corridor coordination rather than organizational overhead.

Being a one-time amount, the long-term sustainability of the TMO would depend on future legislative action or alternative funding sources.

Bottom Line

HF 4488 establishes a one-time $200,000 general fund grant to the City of Shorewood in fiscal year 2027 to support a transportation management organization for the Trunk Highway 7 corridor, with the caveat that none of the funds may be used for administrative costs. The grant supports operational activities across the corridor’s communities and connected school districts.

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