In an emailed statement last week, State Senator Grant Hauschild (DFL - Hermantown) aimed to clarify developments in state-level policies that could boost Babbitt’s 2026 budget.
Hauschild affirms that Local Government Aid (LGA), Payment in Lieu of Taxes (PILT), and County Program Aid (CPA) are among several programs benefiting Greater Minnesota cities that landed safely on the final budget agreement, despite “very tough budget decisions” across the board.
“I worked hard this past session to protect the aid that communities like Babbitt rely on,” wrote Hauschild, “Babbitt has not lost any of its state aid support.”
He describes other new investments into Babbitt’s economy, including a $515 yearly sum to each homeowner in property tax relief through the Taconite Homestead Credit, as well as $3.9 million in funding for “major upgrades” in the local area, which include arena renovations, utility upgrades for housing growth, and park improvements.
Hauschild additionally highlights a $60,564 sum sent directly from the state to the Babbitt Police Department.
“This is the first time in Minnesota history that the state has directly funded local police departments, and I made sure Babbitt was included,” he wrote.
This accompanies additional support dedicated to Babbitt’s emergency responders. Hauschild states he “passed legislation that sent $106,000 directly to Babbitt Ambulance at the end of 2024” and secured additional EMS funding which will enhance department finances in 2026 and 2027.
“I know there’s a lot of concern about what’s happening with local budgets,” Hauschild added, “I understand how difficult these choices are for the council and community. No one wants to be in a position of considering cuts that affect public safety or other critical services.”
“We’ve worked hard to make sure Babbitt has strong support at the state level,” he wrote, “I’ll continue to do everything I can to stand with you and fight for the resources our community needs.”
