Transportation Policy Changes Introduced in the 2025 Legislation in Minnesota, published in November 2025 by researchers at the University of Minnesota’s Transportation Policy and Economic Competitiveness (TPEC), program, summarizes major changes passed in the June 2025 Transportation Policy & Budget omnibus bill.
The Minnesota State Legislature approved changes to roadway funding for the 2026 and 2027 budget years and established a working group to inform the use of electricity as vehicle fuel.
The report identifies modifications to electric vehicle (EV) registration fees, the addition of a hybrid vehicle registration fee, and the addition of a tax per kilowatt hour (kWh) of electricity for EV charging. It also details impacts resulting from the motor fuel tax rate for 2026, exemptions in the retail delivery fee, creation of the local government road funding gap assistance account, changes to the cost participation policy, modifications to the revenue distribution of the automotive parts sales tax, and one-time appropriations for the John A. Blatnik Bridge connecting Duluth, Minnesota, and Superior, Wisconsin.
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