Bismarck, ND – Construction of the Military Gallery on the Capitol grounds is set to resume as early as next week after the North Dakota House approved legislation Friday providing a financial lifeline. House lawmakers voted 71-22 to greenlight a new $20 million loan from the Bank of North Dakota and remove restrictions from $15 million in already allocated state funds. Governor Kelly Armstrong signed the bill Friday afternoon.
The $78 million project, a public-private partnership, had been paused since July 3 due to lagging private fundraising. The new $20 million line of credit is expected to be repaid by private donations and is due in March 2029, though future Legislatures could extend that deadline. Lawmakers had previously committed $39.2 million in state funding to the gallery.
The legislation empowers the Capitol Grounds Planning Commission with oversight of the project. The commission met Friday, unanimously approved paying nearly $4.5 million due to contractors, and voted to restart construction. Tom Job, physical plant director for the Office of Management and Budget, stated there is "a very good chance we could have concrete poured Tuesday or Wednesday of next week." The commission plans further discussion at its regular meeting Thursday and another review of the schedule and costs in roughly four weeks.
While moving to restart the project, many lawmakers expressed concerns about past management and called for safeguards for future public-private partnerships. Rep. Austen Schauer, R-West Fargo, questioned how the project reached its current state and how to prevent recurrence, noting that "good intentions are not financial plans." He added that some blame falls on the Legislature for not creating a proper framework for the partnership.
Rep. Bill Tveit, R-Hazen, after touring the unfinished building this week, described it as a "Taj Mahal" and event center, exceeding its original vision. Tveit criticized the premature start of construction before enough funding was secured, warning, "Unless we hold those people responsible, this will reoccur."
Sen. Sean Cleary, R-Bismarck, proposed a bill, not introduced during the special session, that would require at least 75% of funding to be secured for similar projects before construction begins. Cleary plans to submit a revised version in January, stating, "I still think it’s a necessary safeguard so we don’t get put in situations like this going forward." He also expressed concern about state agencies legally signing construction contracts without access to funds, believing public projects require "a little bit higher standard just so taxpayers aren't on the hook."
Rep. Bernie Satrom, R-Jamestown, one of four lawmakers on the Capitol Grounds Planning Commission, emphasized the need for "a lot of transparency and vigilance on every item" to prevent similar issues.
Governor Armstrong acknowledged his administration shares part of the blame for the project's situation and anticipates "tough hearings and some tough questions asked." He stated, "I can’t imagine a scenario happening like this again as long as I’m governor." Armstrong, who took office in mid-December 2024, noted that his administration inherited the project's timeline, with construction beginning in May 2025. Lt. Gov. Michelle Strinden was a member of the Joint Military Museum Advisory Committee. Armstrong mentioned Strinden's second meeting and first fundraising discussion with the committee coincided with the decision to begin construction. He supported that decision at the time, citing "affirmations made about pledges" and "real consequences to not starting construction," such as increased costs. However, he conceded, "None of these decisions, as we sit here today, turned out to be particularly great."
Private fundraising efforts have secured nearly $4.2 million in pledges and collected about $800,000, according to testimony this week. Previously, lawmakers required $12.8 million in pledges before accessing the $15 million in state funds, a benchmark now removed by the new legislation. An earlier $20 million line of credit from the Bank of North Dakota, which lacked benchmarks under 2025 legislation, has already been spent and accrued $581,000 in interest, requiring the 2027 Legislature to budget for its repayment. The State Historical Society of North Dakota, North Dakota National Guard, and their foundations are jointly working on the project.
