North Dakota lawmakers on Wednesday advanced a funding compromise to restart construction on the stalled Military Gallery project located on the Capitol grounds in Bismarck. A joint House-Senate budget committee recommended a new $20 million line of credit from the Bank of North Dakota and the removal of conditions attached to $15 million in existing state funding. The recommendation, approved in a 34-4 vote, will now proceed to the Senate for a vote on Thursday.
Rep. Glenn Bosch, R-Bismarck, clarified that the $20 million line of credit, included in Senate Bill 2407, is intended to serve as a construction loan. This loan aims to give fundraisers time to gather private donations, with the goal of repaying the $20 million through donations to maintain an even split between state and private funding for the $78 million project. If the loan is not repaid by March 2029, the bill directs the Legislature to evaluate whether to extend the repayment timeline or seek alternative funding sources. The earlier $15 million in state funding, allocated during the 2025 legislative session, had been contingent on the project receiving nearly $12.8 million in pledged private donations, a condition now removed.
Construction on the Military Gallery project, which began in August 2025, was abruptly paused on July 3 due to a lack of funds. The State Historical Society learned it could not legally obtain a construction loan to bridge the gap until additional donations were received. The Office of Management and Budget reported $5.3 million in unpaid bills through September 15, with $4.7 million owed to contractors. Mark Thompson, owner of local contractor H.A. Thompson & Sons, testified that his company is owed nearly $1.9 million for unpaid work completed since April. He expressed concern about the impact a continued delay would have on his business and employees, stating, "Every one of my employees has payments to make."
Shannon Schweigert, managing partner of PACE Fundraising, stated on Wednesday that the project has secured $4.162 million in pledges and collected approximately $800,000. He noted that most pledges are intended to be paid over five years. Schweigert previously indicated that one challenge for the fundraising campaign was its overlap with efforts to raise money for the Theodore Roosevelt Presidential Library. Despite this, he told lawmakers he remains confident the fundraising goal can be met and that "the only way they can fail is if they quit." However, Hogue, a lawmaker, pointed out that fundraisers had raised only 11% of the goal in pledges and 2% in cash donations, remarking, "That's not a strong record," and that it did not inspire confidence.
The compromise followed several hours of testimony and debate. Rep. Jon Nelson, R-Rugby, emphasized the critical nature of the decision, stating, "I don't want to see it stop at any point." Conversely, Sen. Sean Cleary, R-Bismarck, who opposed the plan, expressed concern after the vote that taxpayers would ultimately be responsible for the new $20 million loan, citing that "the fundraising momentum hasn't been good." Sen. Jonathan Sickler, R-Grand Forks, also an opponent, said he did not hear enough evidence there would be sufficient new oversight, suggesting a theme of "some rushed decision-making" around the project. Sickler had preferred an earlier version of the bill that did not include the $20 million line of credit, which would have allowed the Legislature time to consider the problem in the 2027 legislative session; this version was abandoned to provide certainty for contractors and workers. Lucinda Johnson of Beulah testified, questioning the need for a grandiose gallery and stating, "I am very appalled at the amount of money that is being put into a museum." Patrick Pins of Mandan testified in support of action to resume construction.
In addition to the funding, the bill would transfer oversight of the project to the Capitol Grounds Planning Commission, which includes four legislators in addition to other state officials. The military gallery project has been in development since 2022 and is a joint effort involving the State Historical Society, the North Dakota National Guard, and their foundations. The Legislature initially allocated $39 million of taxpayer money to the project during the 2025 legislative session.
