Transportation Economic Development Infrastructure Program

The Transportation Economic Development Infrastructure (TEDI) Program is authorized under Minnesota Statute 116J.436 and is administered jointly by the Minnesota Department of Transportation and the Minnesota Department of Employment and Economic Development (DEED). The program is designed to foster interagency coordination and provide financing for infrastructure projects that promote economic development, create jobs, and improve transportation systems throughout Minnesota. It specifically supports projects that accommodate private investment and job creation by funding infrastructure improvements beyond trunk highway projects, although coordination with trunk highway work undertaken by MnDOT is encouraged. Eligible projects include predesign, design, land acquisition, construction, reconstruction, and infrastructure improvements that enhance economic development and employment opportunities. Funding cannot be used for trunk highway improvements, but it can support nontrunk highway infrastructure improvements connected to trunk highway projects. Applicants must be local units of government, such as cities, counties, or special districts. DEED awards funds as grants, and although there is no formal match requirement, applications with substantial private investment and leverage of nonstate funds are more competitive. A resolution from the local government certifying that pledged match funds are secured is required as part of the application. Applications will be evaluated competitively based on job creation (25 points), increase in local tax base (20 points), level of private investment (15 points), leverage of nonstate funds (15 points), and improvements to the transportation system serving the project area (25 points). Geographic balance between the metropolitan area and greater Minnesota is also considered, and applications must score at least 50 points to be eligible. The strongest proposals demonstrate a well-documented need, secured leverage resources, project readiness, and committed businesses with job creation plans. The application process opens June 30, 2025, with an informational session on July 10, 2025. Applications are due to DEED by 4:00 PM on September 29, 2025. Project selections will be made in December 2025. Projects should be completed within three years of the funding agreement execution, with DEED reserving the right to cancel awards for delays exceeding six months past the scheduled start date. Payment requests must be supported with invoices, canceled checks, and documentation of both TEDI and matching fund expenditures. Applicants must submit a completed TEDI Application in PDF format under 5 MB via email to Jeremy LaCroix at jeremy.lacroix@state.mn.us. The application includes detailed questions on project summary, job creation, transportation improvements, local tax base increases, private investment, and leveraged nonstate funds, as well as budget tables for nontrunk and trunk highway components. Required attachments include a local government resolution, maps, permit approvals, engineering status, construction timelines, property acquisition documentation, business commitment letters, and evidence of community support. Key contact for the program is Jeremy LaCroix at 651-259-7457 or via email at jeremy.lacroix@state.mn.us. Additional resources, such as the Greater Minnesota Business Development Public Infrastructure (BDPI) program and MnDOT’s Transportation Economic Development (TED) program, may be available through separate applications. All application materials are subject to public data rules under Minn. Stat. § 13.599 once the evaluation process is complete.

Strong applications have documented need, secured leverage, committed businesses, and readiness to begin construction promptly after award