CALEDONIA, Minn. - Houston County will return $1.5 million in unused flood aid it received five years ago so it can be redirected to northeastern Minnesota.

The county planned to use the aid to rebuild a section of County Road 22, but the project never materialized. County engineer Brian Pogodzinski (poh-god-ZIN'-skee) says the state is asking Houston County to return the funds so the money can be sent to the Duluth area, which sustained significant flood damage last month.

The county board agreed to return the aid. Pogodzinski says the county has received enough money from the Federal Emergency Management Agency to avoid a cash flow problem.

Winona Daily News reports Pogodzinski says the county may be able to keep the interest it earned on the aid.

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