MN budget outlook projects $3.7 billion surplus now, no deficit in next biennium

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The Minnesota House reports…

The projected surplus for Fiscal Years 2026-27 is now higher than it was in the November estimate, and no deficit is projected for the next biennium.

“Minnesota’s budget outlook has improved amid significant near-term economic and fiscal uncertainty,” according to the February forecast released Friday by Minnesota Management and Budget.

The 2026-27 biennium projected balance is now $3.7 billion, $1.3 billion higher than November estimates. “A slightly improved economic outlook drives a higher revenue forecast largely driven by more volatile sources of revenue,” according to MMB.

However, spending growth is forecast to outpace revenue growth in the projections through Fiscal Year 2029. The projected General Fund balance for the 2028-29 biennium is now $377 million, but “a significant structural imbalance remains. Shifting policies at the federal level and missing or incomplete data due to recent federal government shutdowns introduce significant uncertainty to the projections,” according to MMB.

The forecast released Friday provides the most recent snapshot of the state’s financial health. It is the first look at projections since the November 2025 forecast of an almost $2.47 billion surplus for the current 2026-27 biennium and a $2.96 billion deficit in the next.

Willmar City Council considers rescinding award to build broadband for of Willmar Connect

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The West Central Tribune reports…

The Willmar City Council on Monday, March 2, will consider rescinding the bid award to NC3 for construction of phase one of Willmar Connect and re-awarding the bid to Kramer Service Group.

Hometown Fiber has been contracted to manage the network and the ISPs will pay fees to the city to run on the network. Those fees will be used to fund the debt service and interest on the bonds that will be issued to pay for the construction of the network.

NC3 was awarded the bid for phase one construction on Jan. 20 by the Willmar City Council, having determined at that time that NC3 had demonstrated responsibility, qualifications and financial capacity sufficient to complete the project in accordance with the bid specifications and contract requirements.

However, after the awarding of the bid, NC3 notified the city that it no longer possesses the financial and operational capacity necessary to complete phase one of the project as originally proposed and bid, according to the memo in the agenda packet of materials for the March 2 meeting.

Although NC3 and the staff discussed alterations to the project scope and delivery approach, the alterations deviated from the work as bid and posed a great risk to the city, and staff was no longer confident in the contractors’ ability to perform the work in accordance with the bid documents and conditions under which the award was made, according to the memo.

City staff’s recommendation is to rescind the bid award to NC3 and award it to the next lowest bidder for the project, which is Kramer Service Group of Weyerhaeuser, Wisconsin, in the amount of approximately $8.2 million, according to the memo. The estimate for the cost of the project from Bolton & Menk, the city’s contracted engineers, is a little more than $8 million.

This is a new page of an ongoing story with many chapters.

New Report: Broadband Access in Indian Country – recommendations for improvement

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The Urban Institute has released a new report, Broadband Access in Indian Country. They set the stage…

According to the Federal Communications Commission (FCC), as of 2024, 93 percent of all US residents had access to internet services with “advanced telecommunications capability”—that is, 100 megabits per second of download speed and 20 megabits per second of upload speed (represented as 100/20 Mbps)—compared with only 76 percent of people living on tribal lands (FCC 2024). And 76 percent may be an overestimate—FCC data have been criticized for overstating broadband access on tribal lands (GAO 2018).

And provide recommendations…

In this report, we provide an overview of the major federal programs aimed at supporting broadband infrastructure and share findings and best practices from 15 interviews conducted with individuals working to expand access to high-speed internet in Native communities. Interviewees represented tribal broadband providers, tribal governments, state governments, technical assistance providers, nonprofit and philanthropic organizations, and other advocates supporting tribal broadband access and sovereignty, defined as the right of tribes to govern their communities without interference (Klingbeil et al. 2023). Informed by these interviews and a review of federal funding opportunities, we find the following:

◼ Federal investments have significantly expanded internet access in many Native communities, but others are still left out.

◼ Some tribal governments that received these initial broadband infrastructure investments may face challenges maintaining and operating service into the future because of limited administrative, financial, or technical capacity.

◼ To overcome unfavorable relationships with private internet providers and to sustain adequate internet service in the long run, many tribal governments, tribal broadband providers, and other stakeholders are prioritizing tribal ownership of broadband infrastructure.

Based on these conversations, we identify best practices for tribal governments and tribal broadband providers seeking to access federal broadband funding, build necessary infrastructure, and maintain reliable broadband access. These include the following:

◼ When applying for federal grant opportunities, plan early, leverage technical assistance and partnerships, and prepare applications that can be adapted for other programs.

◼ Develop business, operations, and maintenance plans early in the application process to ensure the proposed broadband project will be financially, technically, and statutorily viable for the community.

◼ Invest in workforce development and build external partnerships to boost local technical capacity without compromising sovereignty.

These conversations also elevated recommendations for other stakeholders seeking to expand and maintain broadband infrastructure in Native communities:

◼ Federal agencies could refine funding opportunities to be more responsive to community needs by providing technical assistance throughout the grant application process, prioritizing tribal ownership of broadband infrastructure, and waiving matching requirements. To make investments more effective in the long run, agencies could provide technical assistance or additional financial support for infrastructure maintenance (not only for construction).

◼ State and local governments could offer more direct technical assistance and provide alternative funding sources to tribal governments and tribal broadband providers.

◼ Philanthropic organizations can increase their support by focusing investments on Capacity building, training, and technical assistance, while organizations with the financial capacity can contribute directly to infrastructure deployment and operations

ImOn Communications to expand fiber to Duluth MN and Superior WI

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Telecompetitor reports...

ImOn Communications, a leading provider of high-speed Internet services across the Midwest, is expanding its 100% fiber Internet network to Superior, Wisconsin, and Duluth, Minnesota, bringing multi-gig speeds to the Great Lakes region for the first time.

The new fiber Internet network provides homes and businesses with the fastest, most reliable Internet technology available, supported by a dedicated local team based in the Great Lakes region. It introduces upload and download speeds up to 5 Gbps for homes and 10 Gbps for businesses, as well as fiber-based phone service.

Construction begins in both Superior and Duluth this spring, pending favorable weather conditions, and will continue throughout 2026. …

ImOn collaborated with city officials during the early planning phase and network design. The ImOn team will communicate with residents when work begins in their area.

Breitung Township Board get broadband update: some areas up by mid-summer, take rate is good (St Louis County)

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The Timberjay reports…

Breitung Township Board Chair Matt Tuchel gave an update on broadband internet at the township’s monthly meeting held Feb. 17.
Tuchel reported that he recently met with representatives from CTC, Lake Country Power, IRRR, CBDG, and representatives from other local municipalities, and that the new internet connections installed last summer will be up and running for Breitung residents along McKinley Park Rd. by mid-summer. He said that just under 50 percent of residents chose to connect to the service, a higher percentage than other townships.
Tuchel said that there are 250 poles within Breitung Township that need to be replaced as part of the broadband project. The current poles can’t handle the addition of the new fiberoptic lines. This is in areas where the broadband cables cannot be buried due to ledge rock, for example. Lake Country Power will not pay for pole replacement but will be stringing the fiber lines on the new poles.
A study, with an estimated cost of $175,000, will be needed to determine pole replacement. IRRR will cover 50 percent of the cost, and three townships — Greenwood, Beatty, and Breitung — would share the remaining cost. Bois Forte is planning to apply for a NTIA grant to cover the cost for pole replacements and other costs to complete this broadband expansion. Total funding needed may be as high as $6 million.
The places identified that need poles are Echo Pt. Rd., Carol Ln., Swamp Rd., and Echo Narrows Ln. The other areas that weren’t addressed that still need service will have fiber laid underground, including McKinley Park Acres Rd., Miettunen Plat Rd., and a portion of Echo Pt Rd.
Tuchel said that broadband service will be discussed further at the township’s annual meeting and invited residents to weigh in on the issue.

A look at fiber consolidation in MN, especially the Twin Cities

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Twin Cities Business reports…

Minnesota is once again directly experiencing big changes in the tech sector. In addition to data center construction (and controversy), the state has become a major-league playing field for fiber optic industry consolidation.

In February, AT&T made itself a major fiber player in the Twin Cities metro by closing on its acquisition of Quantum Fiber, the consumer fiber business operated by Louisiana-based Lumen Technologies. (Lumen also is the parent company of telecom provider CenturyLink, which continues to operate.)

AT&T acquired Quantum Fiber via Gigapower, a joint venture it established in 2022 with New York-based BlackRock, the world’s largest institutional asset manager. (BlackRock’s Global Infrastructure Partners subsidiary acquired Duluth-based electric utility Allete last October.)

This deal follows on the heels of two other fiber company acquisitions. In January, Verizon purchased Dallas-based Frontier Communications, which offers fiber connectivity in the Twin Cities region and elsewhere in the state. And last September, Indiana-based Metronet acquired Minnetonka-based U.S. Internet (USI), which provided high-speed internet to about 140,000 commercial and residential customers in and around the Twin Cities. At the time of its USI purchase, Metronet also delivered fiber connectivity to parts of the metro, along with customers in Owatonna, Faribault, and Rochester. Like Gigapower, Metronet is a joint venture between a telecom and a large investment firm—in this case, T-Mobile and KKR, respectively.

It’s happening all over the state…

Indeed, parts of Greater Minnesota are further along in developing high-speed fiber networks. “I have a number of members that have completed fiber-to-the-premises installations already,” says Brent Christensen, president and CEO of the Minnesota Telecom Alliance, a Madelia-headquartered trade association that represents 40 Minnesota telecommunications companies, most of which are smaller providers in Greater Minnesota. “And the vast majority are either done or just about done building out fiber.”

It’s not only small-town telecoms that are installing fiber. This month, the Bois Forte Band of Ojibwe in northern Minnesota began construction on a fiber optic expansion project intended to connect more than 2,000 Tribal residents. (Also in the Great North: Iowa-based ImOn Communications recently announced plans to build a fiber network in Duluth. This would be ImOn’s first foray into Minnesota.)

New MN Bill introduced: Funding for a digital platform to provide youth with info on internships and job opportunities (HF3004)

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I am going to try to at least track the bills that get introduced that are at all related to broadband and/or broadband use. I may not follow all closely. Click the bill number for more info and updates:

From the MN House...

Sponsored by Rep. Samakab Hussein (DFL-St. Paul), HF3004, as amended, would appropriate $1.3 million in Fiscal Year 2027 for a central digital platform to provide youth with information on internships, mentorships and job opportunities across the state.

OBD director Bree Maki speaks to Broadband Communities about local providers’ concerns with BEAD stipulations

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Broadband Communities reports…

Requirements asking providers to submit written statements pledging not to take additional subsidies to complete and operate BEAD projects have had a chilling effect, according to Bree Maki, the director of Minnesota’s office of broadband development.

Maki made the comments in her recent appearance on Beyond the Cable, a Broadband Communities podcast.

She said providers using subsidies from the Universal Service Fund have been most hesitant to participate in the government’s $42.45 billion broadband spend, known as the Broadband, Equity, Access, and Deployment (BEAD) Program.

“There’s just a level of uncertainty,” she said, referencing the announcement from Arielle Roth last November directing states to obtain the written statements.

You can listen to the full interview below.

Data center opponents ask MN Legislature to consider statewide moratorium, new regulations

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MPR reports…

Opponents of so-called hyperscale data centers are calling on Minnesota lawmakers to adopt stronger regulations this session, including a two-year pause in new construction.

They say requirements for data centers that the Legislature passed last year aren’t enough to protect communities, residents and the environment from the potential negative impacts of the mega-sized facilities.

“We have no regulatory framework in place to protect our communities and the environment from the detrimental impacts of these facilities,” Eleanor Dolan of Duluth said at a rally Wednesday at the state Capitol.

Data centers are large warehouses that store computer servers and power artificial intelligence. The largest ones cover over a million square feet — the equivalent of dozens of football fields.

Data center developers promise they’ll bring jobs, economic growth and tax revenue. But opponents have voiced concerns about the vast amount of energy and water they consume, plus potential air, noise and light pollution.

Only one hyperscale data center — a Meta facility in Rosemount — is currently under construction in Minnesota. But there are at least a dozen proposed in the state.

Several are in the south Twin Cities metro. But others are in small cities, such as Hermantown, Pine Island and Cannon Falls.

New MN Bill introduced: A bill extending the Legislative Commission on Cybersecurity SF3863

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I am going to try to at least track the bills that get introduced that are at all related to broadband and/or broadband use. I may not follow all closely. Click the bill number for more info and updates:

From the MN Senate…

Senators Wiklund, Xiong, and Lucero introduced–
S.F. No. 3863: A bill for an act relating to state government; extending the Legislative Commission on Cybersecurity; amending Minnesota Statutes 2024, section 3.888, subdivision 7.
Referred to the Committee on State and Local Government.

New MN Bill introduced: A bill related to energy and data centers

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I am going to try to at least track the bills that get introduced that are at all related to broadband and/or broadband use. I may not follow all closely. Click the bill number for more info and updates:

From MN Senate…

Senators McEwen, Johnson Stewart, and Maye Quade introduced–
S.F. No. 3968: A bill for an act relating to energy; requiring preapplication filings for large water appropriation projects; adding information to permit applications for large water appropriation projects; specifying the level of environmental review for data centers; removing data centers’ energy consumption from the calculation of a utility’s energy savings goal; exempting data centers from making financial contributions to an energy conservation and optimization plan; depositing fee revenues in an account to be used for energy conservation; modifying the definition of large energy facility; establishing energy requirements for data centers; imposing a fee on data centers; requiring the Public Utilities Commission to establish a new tariff for data centers; amending Minnesota Statutes 2024, sections 103G.265, by adding a subdivision; 103G.271, by adding a subdivision; 116D.04, by adding a subdivision; 216B.2402, subdivision 10; 216B.241, subdivisions 1a, 2a; 216B.2421, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 216B.
Referred to the Committee on Energy, Utilities, Environment, and Climate.

Office of Broadband Development Feb 25, 2026: BEAD & Line Extension updates

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From the Office of Broadband Development…

Broadband Matters: Office of Broadband Development Updates

  • Coming soon! 2026 Broadband Development Training Series
  • Line Extension Connection Program updates
  • Broadband Equity, Access, and Deployment (BEAD) in Minnesota
  • Broadband Task Force, February meeting recap
  • In the news, Bree Maki: Got broadband? If no, it may arrive later this year

Executive Director, Bree Maki, presented Office of Broadband Development legislative updates to the Senate Agriculture, Veterans, Broadband, and Rural Development Committee, Wednesday February 18 and the House Agriculture Finance and Policy Committee, Monday February 23.

Recordings and materials from both are available in the archives on the Senate webpage and House webpage.

Coming soon! 2026 Broadband Development Training Series

OBD has been working alongside other state agencies on streamlining environmental reviews and permitting efforts for broadband infrastructure projects across Minnesota. Those updates will be presented to community partners through a revised Broadband Development Training Series: Navigating PLUS (Permitting, Land Use, and State Systems).

The revised series will feature a combination of updates from previous presenters and new information from partner agencies with resources for broadband program grantees. Registration information for the webinar sessions will be posted alongside the materials from the original 2024 series on the OBD Webinars and Recorded Events webpage.

Line Extension Connection Program updates

Registration remains open for residents and businesses for future rounds of the Line Extension Connection Program. More information and the registration page is available on the Line Extension Connection Program webpage.

For assistance completing the application or to request a paper form to complete please call 651-259-7610 or email DEED.broadband@state.mn.us.

OBD expects to run a fifth round of Line Extension with state project funds in Spring 2026 and is currently in the process of rolling out awards and getting confirmation of award acceptance from providers for Round 4. Preliminary awards will be published to the Line Extension Connection Program webpage later this week.

Broadband Equity, Access, and Deployment (BEAD) in Minnesota

OBD continues to update the OBD BEAD webpage as resources are made available. This includes:

On December 19, 2025, the National Telecommunications and Information Administration (NTIA) approved Minnesota’s BEAD Final Proposal, advancing the state’s plan to expand high‑speed internet with federal funding. Following extensive engagement, restructuring, and over 18 rounds of curing, Minnesota has been initially approved for:

  • $378.9 million in BEAD subgrants across 94 projects. These projects are supported by nearly $190 million in matching funds, representing a total anticipated investment of more than $568.8 million
  • Funds will connect connect 74,739 locations

On Monday February 9, 2026 OBD received its BEAD Notice of Award (NoA) from the National Institute of Standards and Technology (NIST). Next steps will include contracting with subgrantees, which must be completed within 6 months of receipt of the NoA.

Broadband Task Force, February meeting recap

The Broadband Task Force met Wednesday February 18 at 10 a.m. The Task Force heard presentations from Tabetha Brockman (Assistant Professor of Psychology, Program Manager, Mayo Clinic Center for Clinical and Translational Science (CCaTS) Rural Health Research Core) and Ilaya Rome Hopkins (Community Engagement Coordinator, MCCCC & CCaTS Rural Health Research Core) on Rural Health Research: Understanding Digital Access to Improve Community Health. Minnesota Governor’s Task Force on Broadband Member, Ini Augustine (Chief Executive Officer, Technologist Computers), presented on the Neighbors Connect Digital Access Program.

More information on this and past meetings can be found on the Broadband Task Force webpage.

In the news, Bree Maki: Got broadband? If no, it may arrive later this year

Executive Director, Bree Maki, discussed the state of broadband access in Minnesota in Rochester’s Post-Bulletin, noting:

“Broadband is an absolute necessity in today’s world. Nearly every family relies on fast internet to connect to work, school, health care, entertainment, friends and family. Minnesota businesses need it to reach customers, compete locally or globally, and grow. It allows people to live and work where they wish to across the state. But too many Minnesotans still don’t have access to broadband.”

The full op-ed is available online here.

New MN Bill introduced: A bill to allow some State meetings by interactive technology HF3736

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I am going to try to at least track the bills that get introduced that are at all related to broadband and/or broadband use. I may not follow all closely. Click the bill number for more info and updates:

The Minnesota House reports…

Freiberg introduced:

HF. 3736,A bill for an act relating to state government; allowing meetings by interactive technology for certain meetings; naming a state board created by the Minnesota Constitution; amending Minnesota Statutes 2024, sections 9.021; 11A.03; 94.341.

Midwest FiberPath to build multi-conduit long-haul backbone to support AI

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Telecompetitor reports…

Midwest FiberPath says it will build a 1,200-mile multi-conduit long-haul backbone intended to support the increased traffic created by artificial intelligence (AI) in east-west and north-south directions in the Midwest. It will provide what it describes as next-generation carrier mesh diversity.

More details…

The long-haul topography will have three primary corridors:

  • Joliet, Illinois to Des Moines, Iowa to Council Bluffs, Iowa: This multi-conduit route will support hyperscale east-west traffic fabrics between Chicago interconnection ecosystems and numerous Iowa compute campuses.

  • Minneapolis, Minnesota to Des Moines, Iowa to Kansas City, Missouri: This corridor, also multi-conduit, will run north-south and enable regional mesh diversity and alternative long-haul routing across the central U.S.

  • Minneapolis, Minnesota to Cedar Rapids, Iowa to Joliet, Illinois: This will be a diagonal extension reinforcing Iowa as a center-node aggregation point for multi-directional traffic exchange.

New: Diversity in Early-Career Tech Policy Roles: Surveying Progress, Challenges, and Opportunities in the Field

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Public Knowledge has new research on Diversity in Early-Career Tech Policy Roles: Surveying Progress, Challenges, and Opportunities in the Field. Here’s the executive summary…

In 2021, Public Knowledge published the first iteration of this study, led by Tsion Tesfaye, which identified structural barriers to diversity in early-career technology policy roles: reliance on narrow networks, exclusionary job descriptions, inequities in compensation, and the absence of robust demographic data collection. These findings informed Public Knowledge’s own Equity Council, partnerships with Historically Black Colleges and Universities (HBCUs), and adjustments to hiring practices.

In 2025, amid heightened political scrutiny and dismantling of Diversity Equity and Inclusion (DEI) initiatives, this updated study expands the scope and methodology. We surveyed 13 technology policy organizations and convened 17 early-career technology policy professionals. Key insights include:

Recruitment remains narrow. Job opportunities remain largely circulated within organizational websites and established networks, with limited outreach to Minority Serving Institutions (MSIs), affinity groups, or community-based organizations, which continues to restrict access for underrepresented candidates.

On-ramps are improving but remain inequitable. Paid internships are now the dominant early-career on-ramp, but few organizations offer externships or other pathways, and financial barriers still shape who can participate.

Bias-reduction is partial. Structured interviews are widely used to reduce bias, yet practices such as blind resume reviews, scoring rubrics, and diverse interview panels are inconsistently adopted across organizations.

Policies outpace practice. Most organizations report having formal inclusivity policies, but the effectiveness of these policies in improving diverse hiring is mixed, and demographic data collection remains uneven.

Retention depends on clarity. Mentorship and sponsorship programs are the most common strategies for retention, though early-career professionals emphasized the need for clear promotion pathways, stronger onboarding processes, and opportunities to build policy-writing skills.

Leadership representation lags. Diversity in leadership and decision making spaces remains limited, with many early-career professionals reporting that their lived experiences are only sometimes recognized or valued.

The external climate is chilling. Organizations report mixed effects from the external political climate, with most seeing little impact but some noting that federal and state-level legal and regulatory backlash of DEI has created hesitancy around data collection and public commitments