North Dakota

2025 Legislative update

A couple of  key takeaways from this session include more legal reviews to determine if a special session is necessary to correct Gov. Kelly Armstrong’s line-item veto of Senate Bill 2014. Armstrong’s veto message indicated he objected to a $150,000 grant, but the message was accompanied by red lines crossing out a section of the bill that also included $35 million for the Housing Incentive Fund. The Attorney General has ruled that the $35 million was done in error and can be passed without calling a special session unless it is challenged in court.

This legislature invested $2.6 billion for infrastructure road and bridge development and $300 million behavioral health and corrections for a new state hospital with expanded mental health beds.

Passage of the tax relief and reform package. The bill more than triples the state’s existing primary residence property tax credit from $500 per year to $1,600 per year. A dedicated stream of earnings from the state’s $12 billion Legacy Fund will pay for the relief, estimated at $409 million in the 2025-2027 biennium. This earnings stream will grow as the Legacy Fund grows, allowing the size of the tax credit to be increased in future sessions.