AGP Executive Report

Drought Relief for Livestock: The North Dakota Water Commission activated a drought disaster livestock water supply assistance program, approving $2 million in cost-share help for wells, rural water connections, pipeline extensions and pasture taps, with reimbursement up to 65% (capped at $10,000 per project) after Gov. Kelly Armstrong declared a drought disaster. Special Session Watch: Lawmakers set the agenda for a Sept. 2 special session, including kratom regulation (age limits and a synthetic ban), a line of credit for the stalled Military Gallery project, a technical property tax credit fix, and a proposal to bar governments from signing nondisclosure deals with data center developers through 2027. Meta Trial Signals Big Tech Pressure: A federal trial began in Oakland over state claims that Meta designed Facebook and Instagram features that harm youth, seeking major damages and operational changes. Farm Policy Push: The American Farm Bureau urged lower regulatory costs and reforms to strengthen the produce sector, arguing rising specialty-crop import pressure is tied to regulatory-imposed cost differences. Local Business/Community: Bassett Mirror expanded sales representation across Minnesota, North Dakota and South Dakota, adding a new territory rep to support customer relationships. Fuel Prices: GasBuddy reported North Dakota regular gas averaging $3.80 for the week ending Aug. 8, with diesel averaging $4.92.

North Dakota Special Session Watch: Lawmakers advanced a two-part kratom package for a Sept. 2 special session—one bill would ban synthetic kratom derivatives and set graduated penalties, while the other would regulate natural kratom with an age limit of 21, labeling rules, and AG oversight. Data Center Governance: A separate proposal to curb data-center non-disclosure deals is also headed to the special session, while a broader data-center moratorium didn’t move forward. Education & Local Finance: Bismarck school leaders are retrying a bond measure for deferred maintenance and safety upgrades after the June vote fell short of the 60% threshold. Agriculture Relief: Rep. Julie Fedorchak urged USDA to extend federal haying deadlines and give local Farm Service Agency leaders more flexibility during drought. Energy & Fuel Costs: GasBuddy data shows regular prices easing in North Dakota in the week ending Aug. 8, with Traill County’s low at $3.64/gal. Business Moves: Gevo officially canceled its Lake Preston jet-fuel project in South Dakota and shifted focus to North Dakota facilities.

Special Session Watch: North Dakota Legislative Management advanced just six of 20 proposed bills for the Sept. 2 special session, with most measures deferred to January; lawmakers kept focus on kratom regulation, data center policy, and a military gallery funding plan, while proposals tied to childcare funding, prediction markets, e-cigarettes, and English-only driver’s license testing were left out. Kratom Policy: The session is set to consider either a full ban on kratom products or a regulation approach that would bar synthetics and set a minimum age of 21, after the governor ordered kratom products pulled for 30 days starting Aug. 5. Fuel Prices: GasBuddy reports the lowest Traill County regular price at $3.64 (week ending Aug. 8), while premium hit a low of $4.34; across North Dakota, regular averaged $3.80 and premium $4.55. Local Governance & Health: Fargo hired former mayor Tim Mahoney as health officer in a 3-2 vote, but dissenters questioned the consent-agenda process and pay. Business & Trade: Manitoba honey producers are rushing shipments ahead of a threatened 50% U.S. tariff, with North Dakota and South Dakota packers potentially exposed. Health Systems: Essentia Health named Jason Craig executive vice president of administration and operations.

Energy & Business: Empire Petroleum reported Q2 2026 results and said it’s boosting gas handling after major compression upgrades, with Texas activity ramping as more wells move toward production. AI Policy: North Dakota’s schools superintendent urged lawmakers to regulate AI companies and chatbot access for child safety, arguing against blanket bans on AI use in classrooms. Agriculture Risk & Costs: NDSU Extension warned that dry hay and hot tractor parts raise fire risk this baling season, urging frequent equipment checks; meanwhile, drought and feed access are pushing some producers to retain and rebuild herds. Childcare Crunch: Nearly 1,900 North Dakota families remain on a waitlist for state childcare assistance, and a proposed special-session bill would add $9 million to reduce the backlog. Consumer Finance: North Dakota is set to receive a share of a $15.5 million multistate settlement tied to improper force-placed insurance charges by NewRez. Retail & Travel: BoxLunch opened at Dakota Square Mall in Minot, and Allegiant announced nine new nonstop routes expanding spring travel options. Local Economy Pressure: A border-town report says Trump-era tariff and rhetoric are reducing Canadian shoppers and hurting businesses in Pembina.

Fuel Watch: GasBuddy reports the week ending Aug. 8 brought some relief in North Dakota, with the statewide average for regular down to $3.80; Mercer County hit the lowest premium price at $4.88, Steele County’s regular bottomed at $4.04, and Cavalier County’s regular fell to $3.99. Retail Expansion: BoxLunch opened this weekend at Dakota Square Mall in Minot, billed as the company’s only North Dakota location and its largest store. Childcare Crunch: Nearly 1,900 North Dakota families remain on a waitlist for state childcare assistance; lawmakers are weighing a special-session draft that would add $9 million to reduce the backlog. AI Policy for Kids: At a North Dakota AI and Data Center Committee meeting, educators urged safeguards for child AI use, including protections around “companion chatbots” and classroom training requirements. Consumer Finance: North Dakota is set to receive $54,756 from a $15.5 million multistate settlement with mortgage servicer NewRez over improper force-placed insurance charges. Border Business Pressure: A report highlights how fewer Canadian shoppers are hurting Pembina-area parcel businesses, with cross-border passenger traffic down nearly 35% in 2025 vs. 2024.

Childcare Crunch: Nearly 1,900 North Dakota families are stuck on a waitlist for state childcare assistance, as lawmakers weigh a draft that would add $9 million to reduce the backlog. Consumer Finance: North Dakota is set to receive $54,756 from a multistate $15.5 million settlement tied to NewRez LLC improperly charging “force-placed” insurance costs to thousands of borrowers. Healthcare Leadership: Essentia Health named Jason Craig executive vice president of administration and operations, tasking him with overseeing system operations across Minnesota, North Dakota and Wisconsin. Energy & Costs: GasBuddy reports the lowest premium gas in Grand Forks County at $4.25/gallon for the week ending Aug. 8, while statewide averages eased slightly. Policy & Business Climate: A new special-session conversation is heating up around childcare aid, alongside broader debate over how states fund essential services.

North Dakota Business & Economy Watch: Manufacturing expansion: Cirrus is adding more than 30,000 square feet at its Grand Forks facility to meet growing demand, including plans to manufacture composites for its new TRAC10 flight training aircraft. Healthcare leadership: Essentia Health named Jason Craig executive vice president of administration and operations, tasking him with overseeing system operations across Minnesota, North Dakota and Wisconsin. Public safety & policy: A Forum report says North Dakota water systems have not been compromised in recent cyberattacks targeting utilities in neighboring states, while Fargo officials say their supply remains secure. Local government finance: Grand Forks County sheriff Andy Schneider floated a potential sales tax to fund the Sheriff’s Office, aiming to ease pressure on property taxpayers under the state’s new property tax cap environment. Energy & costs: GasBuddy data points to spotty, county-by-county fuel pricing, with some areas seeing lower premium or diesel prices in the week ending Aug. 8. Workforce & benefits: North Dakota’s Economic Assistance program used about 13,000 hours of overtime over two months to reduce a backlog of applications, costing roughly $500,000.

Special Session Watch: North Dakota lawmakers are weighing a Sept. 2 special session agenda that includes kratom restrictions and a proposed $35 million line of credit to restart the stalled Military Gallery project, with potential repayment pressure on taxpayers if donations fall short. Local Governance & Privacy: Fargo-Moorhead-area residents are pushing back on Flock camera systems, raising surveillance and transparency concerns as cities review whether to keep using the technology. Public Safety & Tech: A North Dakota BCI Internet Crimes Against Children task force says AI is “supercharging” child sex-crime investigations, with nearly 3,000 tips last year—an all-time high. Business & Growth: Cirrus opened an expanded Grand Forks manufacturing facility, adding 30,000+ square feet and new capacity to support demand across its aircraft lines. Agriculture: Rugby’s agriculture education program earned a national honor from the National Association of Agricultural Educators, recognizing five years of growth and community support. Community Finance: First Community Credit Union launched a 501(c)(3) foundation focused on education, health and community enrichment across North Dakota and western Minnesota.

Defense Contracting: The U.S. Army selected Texas-based M1 Support Services to lead Flight School Next, a up-to-$10 billion, contractor-run overhaul of helicopter pilot training that includes partners such as the University of North Dakota Aerospace Foundation. Special Session Watch: North Dakota lawmakers are weighing a Sept. 2 special session agenda that includes kratom restrictions and a fix for the stalled Military Gallery—proposed as a $35 million Bank of North Dakota line of credit with oversight and potential taxpayer backstop if donations fall short. Energy Policy: The U.S. Department of Energy canceled its National Interest Electric Transmission Corridors designations, ending three proposed corridor efforts that had reached into the region. Manufacturing Growth: Cirrus expanded its Grand Forks facility, adding 30,000+ square feet and new capacity to support demand for its SR Series and Vision Jet. Finance & Accounting: Fargo-based Eide Bailly will acquire MUN, extending its footprint across California and Hawaii. Ag Economy: American Crystal Sugar kicked off its 2026 pre-pile sugarbeet harvest in the Red River Valley, starting factory runs weeks ahead of full stockpile harvest. Community Giving: First Community Credit Union launched a new foundation to fund education, health and community enrichment across North Dakota and western Minnesota. Workforce & Safety: The NTDC narrowed to 45 finalists in Pittsburgh, advancing drivers with hundreds of millions of accident-free miles.

Rail & Competition: Seven Republican state attorneys general, including North Dakota AG Drew Wrigley, urged the Surface Transportation Board to reject Union Pacific’s $85 billion bid for Norfolk Southern, arguing the merger won’t meet the public-interest “prima facie” standard and could reduce shipping competition and raise costs for farmers and consumers. State Tech & Workforce: North Dakota says it leads the nation in Microsoft Copilot adoption among state governments, with nearly 3,000 employees using it monthly and reported productivity gains. Health Policy: Gov. Kelly Armstrong appointed Conner Swanson as Health and Human Services commissioner, taking over Aug. 29. Public Safety & Courts: A North Dakota BCI task force commander said AI is “supercharging” sex-crime exploitation of children, as cyber tips hit record levels. Agriculture & Conservation: USDA’s NRCS is accepting North Dakota applications for conservation programs through Sept. 18 for FY2027 funding. Energy & Infrastructure: The Energy Department canceled three Biden-era transmission line projects, including a corridor that runs through North Dakota, citing cost and reliability concerns. Local Economy: Grand Forks-area golf is getting more accessible after donated VertaCat carts and covered green fees helped players with disabilities get back on the course.

TikTok Policy Shift: Gov. Kelly Armstrong rescinded North Dakota’s ban on TikTok on state-owned devices after the state IT department said the app is no longer a cybersecurity threat, citing majority U.S. ownership. AI in Government: North Dakota is leading the nation in enterprise Microsoft Copilot adoption, with nearly 3,000 state employees using it monthly and reported savings of 5–6 hours per month. Health Spending Watch: Bismarck Medicaid claims for Enteral and Parenteral Therapy jumped 622.9% in 2024, signaling major shifts in local care utilization. Rural Conservation Funding: USDA’s NRCS is accepting applications for North Dakota conservation programs for fiscal year 2027, with a Sept. 18 deadline. Energy Grid Politics: The U.S. Department of Energy canceled three Biden-era transmission line projects, including the Tribal Energy Access Corridor that runs through North Dakota and neighboring states. Aviation Needs: A new state aviation study projects a $350.7 million funding shortfall over 10 years, even as airports support about 29,000 jobs statewide. Carbon Pipeline Dispute: A second company is suing Summit Carbon Solutions’ affiliate over $6.6 million in alleged unpaid valve costs tied to a carbon sequestration pipeline plan affecting North Dakota. Rail Competition: Six state attorneys general, including North Dakota’s Marty Jackley, oppose the UP–NS merger, arguing the competitive benefits don’t go far enough. Fuel Prices, Local Glimpses: GasBuddy reports show spotty lowest prices across counties for midgrade and diesel, with statewide diesel averaging $4.92 for the week ending Aug. 8.

Energy & Ag Growth: Gevo is expanding in Richardton, adding a second facility to lift ethanol capacity to about 150 million gallons a year and later ramp sustainable jet fuel production. State Budget Watch: North Dakota’s Legacy Fund earnings are projected to be about 30% higher for the 2027 session, with preliminary spending near $894 million. Food Assistance Pressure: Federal SNAP changes are expected to cut benefits for thousands of North Dakotans, with the state projecting about a 10% enrollment drop as households recertify. Farm Bill Standoff: North Dakota farmers are frustrated as Farm Bill talks stall in the Senate Agriculture Committee, with disputes over SNAP funding still the biggest hurdle. Rural Health Access: North Dakota is opening about $2 million in grants to help rural groups buy non-emergency medical transportation vehicles. Local Infrastructure: Minot’s Eastwood Park historic bridge is headed for preliminary engineering to assess deterioration and estimate rehab costs. Tech Policy: Gov. Kelly Armstrong rescinded North Dakota’s TikTok ban on state-owned devices after ownership shifted to a majority-American-led consortium. Energy Prices: GasBuddy reports show some of the lowest weekly prices in McLean County, underscoring continued regional fuel volatility. Public Health Recall: Whole Foods expanded a salmonella-related recall tied to jalapeños sold across multiple states.

Special Session Watch: North Dakota lawmakers are weighing what to do about kratom as the bill deadline for the Sept. 2 special session nears, with proposals ranging from a full ban to tighter limits on high-7-OH products. Energy & Courts: West Virginia AG J.B. McCuskey is leading a coalition urging a federal appeals court to keep Enbridge’s Line 5 open, arguing state action would raise energy prices and conflict with federal pipeline authority. Fuel Prices: GasBuddy reports the lowest regular gas in McLean County hit $3.79 for the week ending Aug. 1, with North Dakota’s average at $3.85. State Tech Policy: Gov. Kelly Armstrong rescinded North Dakota’s TikTok ban on state-owned devices after ownership shifted to a majority-American-led consortium; access now goes through NDIT’s security review. Rail & Competition: Seven Republican AGs, including North Dakota’s Drew Wrigley, asked the Surface Transportation Board to reject Union Pacific’s Norfolk Southern deal, warning proposed pricing remedies could narrow competition. Community Giving: The North Dakota Community Foundation awarded more than $11 million in grants in 2025, supporting local communities, schools and scholarships.

Aviation Expansion: UND’s new $36 million Flight Operations Center is taking shape at Grand Forks International Airport, with completion expected in February 2027 and a new 16,000-square-foot hanger included. Local Tax & Governance: Jamestown Parks and Recreation’s attorney will draft an MOU for a proposed amendment to the city’s sales tax ordinance, with a 50-50 split on a 1.5% sales tax if approved. Housing Affordability: Rep. Fedorchak held a housing affordability roundtable, hearing from builders, banks and advocates about cutting local barriers to construction and expanding manufactured-home options. Energy & Tribal Rights: A dispute over a behind-the-meter solar array at Prairie’s Edge Casino Resort centers on tribal sovereignty and whether a cooperative can disconnect service; the Public Utilities Commission is set to act Sept. 17. Food Security: Federal SNAP changes are leaving refugees among thousands of North Dakotans losing benefits, according to a Fargo nonprofit serving resettled families. Public Safety & Fraud: A U.S.-based man was indicted in North Dakota for $113,000 in business email compromise fraud. AI & Utilities: NDSU research specialist Robert Mayo released a guide on how AI data centers could affect water use, electrical costs and noise—aimed at helping policymakers ask better questions. Business Climate: Senator John Hoeven outlined Farm Bill and agriculture assistance priorities at a Fargo-area chamber roundtable. Fuel Watch: Diesel prices in North Dakota averaged $4.89 per gallon for the week ending Aug. 1, with some counties reporting single-station lows near $4.94–$4.99.

Emergency Preparedness: Gov. Kelly Armstrong proclaimed August as Emergency Management Awareness Month, spotlighting the behind-the-scenes work of local, tribal and state emergency managers who coordinate preparedness and recovery across North Dakota. North Dakota Policy & Economy: Sen. John Hoeven laid out priorities tied to the Farm Bill 2.0, additional agriculture assistance, and trade actions aimed at protecting U.S. sugar producers, plus efforts to expand oil recovery in the Bakken and extend coal-fired power life. Housing Affordability: Rep. Julie Fedorchak hosted a housing affordability roundtable in Bismarck, with builders, banks and HUD discussing ways to reduce barriers to homebuilding as supply shortages push costs higher. Food & Consumer Safety: A multistate Salmonella outbreak tied to jalapeños has reached 27 states, including North Dakota, prompting downstream recalls and renewed scrutiny of foreign food safety inspections. Agriculture Markets: Grain traders are bracing for August WASDE as weather and yield debates shape wheat and soybean price moves. Local Business/Community: Great Plains Food Bank broke ground on a larger Fargo distribution center expected to open in fall 2027, a $30.5 million project still seeking additional funding. Cyber/Scams: North Dakota ranked 50th in BBB Scam Tracker reports in July, with online purchase scams the most common.

Data Centers & State Policy: Fargo Sen. Tim Mathern is pushing a bill draft that would bar public officials from signing non-disclosure agreements tied to data center projects, and he’s floated a temporary moratorium—while a three-day special session focused on kratom may not be the right forum, according to top legislative leadership. Education Finance: Grand Forks School Board advanced a Ray Richards Golf Course PILOT on a 5-4 vote, setting up city and county votes for a plan to build 169 apartments plus a Topgolf-like driving range. Agriculture Watch: USDA reports U.S. sugarbeet acreage fell to the lowest level in decades, with weather and economics driving the drop; North Dakota remains a leading state by acreage. Farm Field Trials: North Dakota State University Extension research says “mix it all and apply once” chemical blends for sugarbeets aren’t as simple as hoped, with trials pointing to better crop safety when chemicals are separated. Public Health: A Salmonella Javiana outbreak tied to imported jalapeños has expanded to 27 states and widened recalls from restaurant foods into grocery items. Energy & Costs: North Dakota’s drought has prompted a statewide fire emergency, while local fuel-price reports show diesel and premium prices fluctuating week to week across counties.