MN SF4266

Establishes the Minnesota Federal Funding Protection Trust Fund as a special revenue fund in the state treasury to receive and hold federal funds and federal pass-through funds intended for state agencies, local governments, and nonprofits

Authorizes the Commissioner of Management and Budget, in consultation with the attorney general and governor, to temporarily hold federal funds when they have been suspended, delayed, or conditioned in ways not authorized by federal statute, or when federal actions risk interrupting essential state services

Requires funds held in the trust to remain dedicated to their original federal purpose and prohibits repurposing or transferring them; funds must be released when the governor certifies federal funding has been restored or continued holding risks noncompliance

Mandates quarterly reports to the legislature detailing amounts held, affected programs, legal basis for holding, and federal agency communications; requires legislative auditor review within two years of enactment

Prohibits the state from collecting federal taxes, interfering with tax obligations to the federal government, or assuming liability for federal penalties