More than $1 billion in federal funding for Blue Line LRT extension unclear as Trump takes office

The fate of more than $1 billion in federal funding needed to build the Blue Line light-rail extension from Minneapolis to Brooklyn Park remains unclear as President-elect Donald Trump prepares to take office next month.

In November, Trump nominated former Fox News host, MTV reality star and U.S. Rep. Sean Duffy, a Republican from Wisconsin, to lead the U.S. Department of Transportation, the federal behemoth that distributes critical grants for big transit projects like the Blue Line extension.

Duffy hasn't commented publicly on his roadmap — should he be confirmed — for the federal department, which has a $100 billion annual budget and a vast reach that includes the nation's highway, airspace, maritime and rail systems.

As Trump's executive branch takes shape in Washington, transit planners in the Twin Cities will continue working on the $3.2 billion project, an expansion of the existing Blue Line that has been in the works for at least a decade.

If built, the Blue Line extension would become the largest public infrastructure project in state history, perhaps surpassing the troubled $2.9 billion Southwest light-rail line.

To date, some $188 million has been spent by Hennepin County planning the project, which would also serve north Minneapolis, Robbinsdale and Crystal. The cost to build the 13.4-mile line is expected to be shared between the county and the Federal Transit Administration (FTA).

The Metropolitan Council said in a statement this week the Blue Line extension is a "strong project that will bring significant investments to the region." The regional planning body will build and operate the line, which is slated to begin service in late 2030.

"Rather than speculating about actions Congress or the executive branch may take, we are continuing to advance this project with our regional partners and look forward to the shared work ahead," the statement added. "A transit project that meets the needs of those it is built to serve will ultimately have the elements necessary to win approval."

Other local transit projects in the pipeline that could be affected under the new administration include the Purple Line, a bus-rapid transit (BRT) project in the east metro, and the H Line, an arterial BRT line linking the Sun Ray Transit Center in St. Paul to downtown Minneapolis. The Purple Line's route is still being determined; neither project has a formal budget as yet.

Given the chaos of last week's budget showdown in Congress, it's "impossible to predict how the new administration views federal funding of public transportation," said Yonah Freemark, of the Urban Institute, a Washington think tank. "It's all over the place with the Trump administration. The reality is that we're running into the unknown at the moment."

But if Trump's first term is any guide, transportation funding will prioritize road projects over expanding passenger rail, public transit and bike and pedestrian projects, hallmarks of the Biden administration, Freemark said.

Mixed opinions on Duffy

When news broke on Duffy's nomination, the Sierra Club immediately dubbed him "deeply unqualified" to lead the transportation department. "His real-world understanding of transportation investments and economic opportunities are limited to a MTV show," the environmental group said in a statement.

Duffy was a co-sponsor of bipartisan legislation led by U.S. Sen. Amy Klobuchar (D-Minn.) supporting the $646 million St. Croix Crossing Bridge project, which connects Wisconsin and Minnesota. And Wisconsin Democratic Sen. Tammy Baldwin said she's confident she can work with Duffy in his new post and plans to support his nomination.

The American Public Transportation Association (APTA), an industry organization based in Washington, struck a similar chord following Duffy's nomination. "Over decades, Congress and administrations have strongly supported these bipartisan investments because they create jobs and opportunities for workers and businesses and help communities thrive," said APTA Chief Executive Officer Paul Skoutelas in an email.

But Project 2025, the conservative Heritage Foundation's blueprint for government, has called U.S. DOT's Capital Investment Grant (CIG) program "another example of Washington's tendency to fund transit expansion rather than maintaining or improving current facilities." Trump says he hasn't read the plan.

The program is a critical and major funding source for the Blue Line extension and has anted up millions for the Green Line linking the downtowns of Minneapolis and St. Paul and Southwest light rail extending the line to Eden Prairie come 2027. Southwest has been dogged with cost overruns and delays that prompted a probe by the state's legislative auditor.

"Rather than throwing good money after bad by continuing federal subsidies for transit expansion, there should be a focus on reducing [the] costs that make transit uneconomical," the Project 2025 report notes.

The first Trump administration urged Congress to eliminate the Capital Investment Grant program, but it has strong support among members of Congress. "At a minimum, a new conservative administration should ensure that each CIG project meets sound economic standards and a rigorous cost-benefit analysis," the plan notes.

Would Hennepin County cover feds' share?

It's unclear whether Hennepin County taxpayers would be on the hook to pony up approximately $1.5 billion if federal funds fail to materialize. If past financial scenarios are any guide, it's unlikely the state will play a meaningful role in contributing toward a new light rail line.

When asked how Hennepin County might react to a possible lapse in federal funding, spokesperson Carolyn Marinan said officials are "hopeful that there will be continued ongoing support to fund this critical and transformational transit project."

Earlier this month, Hennepin County commissioners added $174 million to the Blue Line extension account so the project can keep going through June 2026.

"Increasing transit options and reducing congestion is a shared priority for Hennepin County and the Met Council regardless of which party controls the White House or Congress," Marinan said, noting the Southwest project has attracted more than $3 billion in private investment along its route.

"Our future is linked to transit, and we're working hard to advance the Blue Line Extension to improve transit benefits, create more jobs for people throughout Minnesota and drive additional private investment," she said.

In its statement, the Met Council noted it has "experience working through transitions and new administrations." It was during the first Trump term that the Southwest light rail line received a critical $929 million grant from the federal government to move forward.