$35 Million Blunder DERAILS Vital Funding Project

Collapsing house of cards in motion
Instability: in the market, business, finances, etc, this can be symbolic of them all.

North Dakota Governor Kelly Armstrong’s $35 million budgetary blunder has thrown critical housing initiatives into disarray, leaving lawmakers scrambling to salvage funding before the July 1 deadline.

Key Takeaways

  • Governor Armstrong accidentally vetoed $35 million in housing funds while attempting to remove a $150,000 Native American homelessness liaison position
  • The legislative council director called the situation unprecedented in his 37-year career
  • The error may require a special legislative session to correct, with only six days remaining in the regular 80-day session
  • The housing budget veto will take effect July 1 unless corrected through legislative action

A Costly Clerical Error

In what can only be described as a bureaucratic nightmare, North Dakota Governor Kelly Armstrong has inadvertently eliminated $35 million in critical housing funding through an accidental veto. The mistake occurred while Armstrong was attempting to exercise line-item vetoes on specific provisions within an agency budget bill. Instead of precisely targeting a $150,000 grant for a Native American homelessness liaison position as intended, the governor’s staff made what they’re calling a “markup error” that struck down the entire housing budget allocation, creating a financial emergency that requires immediate attention.

North Dakota Republican Gov. Kelly Armstrong accidentally vetoed $35 million for the state’s housing budget while attempting to veto a couple of line items in an agency budget bill,” said Kelly Armstrong.

Unprecedented Situation Faces Tight Timeline

The accidental veto has created an unprecedented challenge for North Dakota’s government. Veteran Legislative Council Director John Bjornson expressed his astonishment at the situation, noting its uniqueness in nearly four decades of service. With the housing budget veto set to take effect on July 1, lawmakers are racing against the clock to find a solution. The legislature has only six days remaining in its constitutional 80-day session, making the timing particularly problematic. Officials must now determine whether to use these precious remaining legislative days to address the error or to convene a special session.

“The legislative council director noted that he had never seen anything like this in his 37 years of service,” said John Bjornson.

Complex Legislative Remedies

Fixing this high-stakes error presents a complex legislative puzzle. If lawmakers choose to override the governor’s veto, they would restore the housing funding but also reinstate the $150,000 liaison position that Armstrong originally intended to eliminate. Alternatively, drafting a new bill specifically for the $35 million housing budget could take up to three days to process through both legislative chambers—potentially consuming half of the remaining session days. Armstrong’s office has acknowledged the mistake and pledged to work with legislative leaders to rectify the situation.

“Armstrong’s office stated that the veto was an honest mistake and that they would work to fix it,” stated Armstrong’s office.

First-Term Governor’s Growing Pains

This budgetary mishap comes during Armstrong’s first legislative session as governor since his election in 2024. The incident highlights the learning curve facing new administrations, particularly when navigating the intricate process of line-item vetoes. While the error was clearly unintentional, it raises questions about administrative oversight and the verification processes in place for executive actions with far-reaching financial implications. The situation serves as a stark reminder that even minor clerical errors in government can have multimillion-dollar consequences for critical programs and services.

Broader Implications for State Governance

Beyond the immediate housing funding crisis, this incident may prompt North Dakota to reevaluate its veto procedures and implement additional safeguards to prevent similar mistakes in the future. A special session to address this issue could also open the door to reconsideration of other vetoed items, potentially creating a more comprehensive review of the governor’s recent decisions. As this situation unfolds, it serves as a cautionary tale about the importance of meticulous attention to detail in governmental processes, especially when they impact essential services like housing that affect vulnerable populations.