Bill > SF3064

This bill eliminates the existing statutory authority that allows state agencies to automatically retain a percentage of grant funds for administrative costs. Specifically, the bill repeals Minnesota Statutes section 16B.98, subdivision 14, which previously permitted state agencies to keep up to 5% of grant funds from legislatively enacted and formula grants, and up to 10% of competitively awarded grants to cover administrative expenses. The provision was set to apply to new grant programs enacted on or after July 1, 2023, and did not include grants funded by state general obligation bond proceeds. By repealing this section, the bill removes the blanket permission for agencies to automatically withhold a portion of grant funds for their administrative overhead, potentially requiring agencies to seek specific appropriations or funding for administrative costs through other means.