In response to a costly drafting mistake that wiped out $35 million in housing funds, North Dakota lawmakers are pushing a new bill to clearly define post-session veto deadlines — aiming to prevent history from repeating itself.

Earlier in 2025, Gov. Kelly Armstrong’s office unintentionally vetoed a full budget section rather than a small line item, effectively canceling nearly $35 million intended for affordable housing and homelessness support

The error triggered a scramble to restore the funds, eventually prompting the Attorney General’s opinion that the governor’s written veto message could salvage the original intent.

Now, legislators say the episode revealed a gap in state law around veto timing — especially when a veto occurs after the Legislature adjourns — and are drafting reforms to require clearer procedures and deadlines.

Locally, a recent Bismarck resource fair offered direct services like food, clothes, toiletries and information to housing-insecure residents — a signal of heightened demand.

Bismarck-area housing nonprofits and developers had already begun planning with those millions in mind. The uncertainty created delays and concern about whether projects would proceed on schedule.

“We heard from clients who delayed applying for rehab projects because they didn’t know how the budget would stick,” said Jennifer Henderson, Planning & Housing Director at ND Housing Finance Agency.

Looking Ahead in Bismarck
North Dakota’s Legislature plans to introduce the veto-procedure reform bill in its next session (2027), with early support from leadership.

For Bismarck, the stakes are tangible: clearer veto rules mean more predictable funding flows to housing, shelter, and neighborhood projects. Residents and local groups watching this closely hope that one drafting error becomes the lesson that saves future crisis.