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Early Local Government Aid Payment To Be Distributed by March 20
The Minnesota Department of Revenue will issue an early payment for 2025 LGA.
Due to a provision in the 2023 tax law, cities will be receiving a portion of their 2025 local government aid (LGA) this month.
The law, which increased LGA by $80 million beginning in 2024, also requires the Department of Revenue to distribute 9.402% of a city’s certified 2025 aid by March 20. This is not supplemental funding but rather an advance on the LGA payments cities would normally receive in July and December.
This is a one-time advance payment and will not occur again next year unless there is a change in the law. The remaining 90.598% of LGA will still be distributed as usual, split equally between July 20 and Dec. 26 payments.