Governor Doug Burgum has signed the $680 million bonding bill.
The bill provides money for the FM Diversion project, Mouse River flood control, an agriculture building at NDSU, bridge repair and an infrastructure revolving loan fund.
The bonds will be paid off using proceeds from the state Legacy Fund.
At a signing ceremony in the state Capitol, Burgum said this is a financially conservative thing to do.
"We will save tens if not hundreds of millions of dollars for our state and political subdivisions over a period of time, versus waiting for years to pay cash, when inflation has stricken the construction markets," Burgum said. "That's just smart economics, and that's going to save our taxpayers dollars."
The FM Diversion project is receiving $435 million.
"This means so much for us," said Diversion Authority Executive Director Joel Paulson. "This provides financial certainty, to insure that we have no delays, and that we can construct a project in seven years."
Paulson said at the Authority's May meeting, the plan is to award a bid for the public-private partnership, and construction should begin on the channel this fall.