Minnesota Lawmakers Reallocate $77 Million, Halting Northern Lights Express Rail Project

Minnesota Lawmakers Reallocate $77 Million, Halting Northern Lights Express Rail Project

St. Paul, MN – May 18, 2025 — In a significant shift during the final hours of the legislative session, Minnesota lawmakers voted to reallocate $77 million from the Northern Lights Express (NLX) rail project to fund unemployment benefits for seasonal school workers.

The NLX, a proposed 155-mile high-speed rail line connecting Minneapolis and Duluth, had been in development for over two decades. The project aimed to offer a sustainable transportation alternative along the Interstate 35 corridor, with anticipated stops in communities such as Coon Rapids, Cambridge, Hinckley, and Superior, Wisconsin.

Initially, the state had allocated nearly $195 million for the NLX, with expectations of securing additional federal funding. However, the recent decision reduces the state's commitment by $77 million, leaving $108 million in place.

Supporters of the NLX, including former State Senator Patricia Torres Ray, have long advocated for the project's potential to boost economic development and provide environmentally friendly transportation options. Conversely, opponents, such as Rep. Jon Koznick (R–Lakeville), have raised concerns about the project's financial viability and projected ridership.

The Minnesota Department of Transportation (MnDOT), which has been instrumental in planning the NLX, is expected to assess the implications of this funding shift on the project's future.

As the state redirects funds to address immediate needs, the long-term vision for high-speed rail connectivity between Minneapolis and Duluth faces uncertainty.