State Aid for Local Transportation

2026 Local Road Improvement Program Solicitation

By: Rashmi Brewer, State Aid State Programs Engineer

Solicitation and schedule

As a result of the 2026 legislative session, $50 million in GO bond funds are available for this Local Road Improvement Program (LRIP) competitive solicitation, with at least $3 million dedicated to township grants. Based on LRIP Advisory Committee recommendations and MnDOT Commissioner approval, the maximum grant award will remain $1.5 million for counties, state aid cities, non-state aid cities, and townships, consistent with the 2025 solicitation.

*Exact dates will depend on the number of applications received

Application submission options

Resubmit

For unselected 2025 projects submitted again with no changes to the application and attachments. Applicants complete a streamlined form and reuse their 2025 materials. New 2026 resolutions are not required if the entity can confirm continued support from its governing body, project sponsor and partners.

Refresh

For applicants who want to update their 2025 narratives and/or attachments. A full application is required, along with either new 2026 resolutions or signed statements confirming the 2025 resolutions remain valid. Applicants may reuse their 2025 text to expedite completion.

New

For applicants submitting a project for LRIP funding for the first time. A full application and all required attachments must be completed.

Eligibility and evaluation

Please visit the LRIP webpage for frequent updates and key documents. Start by reviewing the 2026 LRIP Solicitation Guide for details on eligibility and requirements. If you have questions, consult the FAQ and webinar slides. Then use the solicitation guide as your primary resource when completing the LRIP grant application.

See below for a summary of eligibility and evaluation details:

• Federally Recognized Indian Tribes are eligible to participate in Tribal LRIP Solicitations. Because Tribes may receive general fund appropriations only, and the 2026 LRIP program solicitation is supported entirely by general obligation bonds, a Tribal LRIP solicitation will not be held in 2026. Tribes are encouraged to collaborate with local project applicants by providing letters of support for projects located within Tribal boundaries or benefiting Tribal lands.
• Projects that have received legislatively selected appropriations (“earmarks”) or previous competitive LRIP grants are not eligible for this solicitation.
• Projects that will be under construction before grant selections are announced (expected on or before March 30, 2027*) are not eligible.
• Projects should be non-controversial and construction ready in 2027, 2028 or 2029.
• County applications compete with other counties; State Aid cities with State Aid cities; and small cities/townships with peers. Funding is expected across all four agency types.
• Improvements must have a minimum useful life of 10 years.
• Eligible costs include reasonable capital elements for roadway construction, reconstruction and reconditioning.
• Ineligible uses of LRIP funds include non-capital and soft costs, capital construction item costs above standard, capital construction item costs related to public utilities, and capital construction costs for privately owned infrastructure. See LRIP FAQ #1 for more information on eligible and ineligible project components
• LRIP funds cannot be used for Trunk Highway improvements, including local costs required under MnDOT’s Cost Participation Policy.
• LRIP funds cannot be used for local improvements located within trunk highway right-of-way.

County Sponsorship

Consistent with previous solicitation requirements, State Aid will require counties to sponsor projects on township and non-state aid city roads. See #4 and #19 in the LRIP FAQ for more details on sponsorship responsibilities and possible alternative approaches for small city/township projects. County sponsorship is required (1) to provide engineering, plan development, contract administration, and grant agreement expertise to townships and small cities, and (2) to help ensure that the improvements will be constructed on time and within budget. Townships and small cities should coordinate early with their county engineers to discuss potential applications and secure sponsorship for their submissions.

Questions

If you have any questions, please reach out to Rashmi Brewer at rashmi.brewer@state.mn.us.