Municipal Aid Law and Legal Definition

Municipal aid means the financial assistance provided by a municipal corporation to a private enterprise for the execution of some progressive works in the municipality. For example, municipal aid to railroads. Municipal aid to railroads is granted as an inducement to build the line through a particular municipality. The railroad does not have a duty to direct its line through the town or city. Therefore it is a legitimate municipal function to seek the benefit which a railroad brings to a community.[Bybee v. Minneapolis, 208 Minn. 55, 59-60 (Minn. 1940)].