GMNP Update - May 8, 2026
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Dear GMNP members,
This week, the Legislature began working earnestly to finalize bills. Most of the omnibus bills have passed their respective House and Senate floors, and on Friday, we will see some of the first conference committees begin to meet.
Notably, the conference committee on the Housing bill (H.F. 1141) will begin negotiating differences between the House and Senate bills on Friday. I will be testifying to encourage the Conferees to take House and Senate positions that will benefit Greater Minnesota. These include investing additional dollars into the Greater Minnesota Workforce Housing grant program, adopting the policy language that would make the State Housing Tax Credit work better in Greater Minnesota and the language that would improve the Greater Minnesota Housing Infrastructure grant program. It is our goal that when the bill comes out of the Conference Committee, the bill will adopt the Greater Minnesota-supporting provisions. Read on for a summary of where key bills stand at present.
Best,
Darielle Dannen
Executive Director, Greater Minnesota Partnership
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Business Recovery Package
Senate
- S.F. 4535 (Champion)
- $100 million business recovery loan program.
- $18 million for MIFs based on demand.
- Passed Senate Floor 35-31 on 4/30/26
House
- H.F. 4477 (Frazier)
- $100 million business recovery loan program.
- Offered as an amendment to H.F. 3732 on House Floor but failed on a party-line vote.
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Jobs Omnibus Appropriations Bill
Senate
- S.F. 3664 (Champion) – Omnibus appropriation and policy bill.
- Includes Agency policy fixes.
- Appropriation language added to S.F. 4059 Omnibus Finance supplemental appropriations bill (just WDF appropriations).
- Passed Senate Floor 35-31.
House
- H.F. 3732 (Pinto) – Omnibus appropriation and policy bill.
- Would create a new subcommittee of the Governor's Workforce Development Board to recommend grants from the Workforce Development Fund up to $10 million dollars worth.
- Creates a new Healthcare Workforce Grant Program (but does not fund it).
- Extends UI benefits to laid off iron ore mining workers.
- Creates an Office of Community Investment at DEED that provides oversight, strategic direction, program design, and tracks grant outcomes.
- Passed House Floor 98-35 on 5/4/26.
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Housing Omnibus Bill
Senate
- S.F. 0203 (Port) – Housing Finance and Policy Omnibus bill.
- Authorizes $50 million in HIB bonds.
- Makes changes to Housing Infrastructure grant program to align with workforce housing.
- Makes changes to SHTC to better align with workforce housing.
- Policy language around agency reporting on fiscal balances and restrictions on interest spending.
- Passed Senate Floor 35-31 on 5/7/26.
House
- H.F. 1141 (Howard) – Housing Finance and Policy Omnibus bill.
- $20 million for Greater Minnesota Workforce Housing grant program.
- $40 million for FHPAP.
- $150,000 for homebuyer education training.
- $100 million for HIB bonds.
- Policy language around agency reporting on fiscal balances and restrictions on interest spending.
- Uses some interest income from Minnesota Housing to fund some appropriations.
- Passed House Floor 99-32 on 5/4/26.
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- S.F. 5052 (Rest) – Senate Omnibus Tax Bill.
- Included the Governor’s expansion of the dependent tax credit.
- Modifies LAHA/SAHA to allow funds to be used for emergency shelter facility construction and extends by two years the deadlines to spend the aid on qualifying projects.
- Modifies the SHTC to require that 50% of the tax credits for projects in Greater Minnesota.
- Makes changes to SHTC to better align with workforce housing.
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SIGNIFICANT HAPPENINGS THIS WEEK
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Monday 5/4/26
House Floor – The House heard numerous bills, notably:
- H.F. 1141 (Howard) – Housing Finance and Policy Omnibus bill. This bill includes the following:
- $20 million for Greater Minnesota Workforce Housing grant program.
- $40 million for FHPAP.
- $150,000 for homebuyer education training.
- $100 million for HIB bonds.
- Policy language around agency reporting on fiscal balances and restrictions on interest spending.
- Uses some interest income from Minnesota Housing to fund some appropriations.
- Rep. Norris offered an amendment that would have limited rent for senior housing tax credit housing. Rep. Igo spoke against the amendment, citing DFL mandates and energy construction requirements as pushing up the costs of housing.
- Rep. Igo spoke to the reinvestment of some of the interest that Minnesota Housing has accrued on appropriations into the Greater Minnesota Workforce Housing grant program and why that reinvestment is important. He also spoke to the enhanced reporting that the bill includes that will improve transparency for the Legislature. Rep. Skraba and Rep. Kozlowski both spoke in support of the $20 million in Greater Minnesota Workforce housing grant fund and their importance in Greater Minnesota in the bill.
- The bill passed 99-32.
- H.F. 3732 (Pinto) – Omnibus appropriation and policy bill. This bill includes:
- Would create a new subcommittee of the Governor's Workforce Development Board to recommend grants from the Workforce Development Fund up to $10 million dollars worth.
- Creates a new Healthcare Workforce Grant Program (but does not fund it).
- Extends UI benefits to laid off iron ore mining workers.
- Creates an Office of Community Investment at DEED that provides oversight, strategic direction, program design, and tracks grant outcomes.
- Rep. Frazier offered an amendment to H.F. 3732 to amend the business relief program into the Workforce bill (H.F. 3732, A15). Rep. Baker agreed that business relief is needed from Operation Metro Surge but shared his requirement that small businesses be removed from the state’s Paid Leave program to support this proposal. The amendment failed to pass on a party-line vote.
- The bill passed 98-35.
Thursday 5/7/26
Senate Floor – Took up S.F. 0203 (Port), which is the Housing Omnibus Bill:
- A-12 – Technical amendment. Adopted.
- A-7 – Designates $5 million of the HIB funds for manufactured housing. Adopted.
- A-4 – Policy changes around eviction. Adopted.
- A-14 – Limits rent increases in senior tax credit housing. Adopted.
- A-10 – Requires allowing flying military flags. Adopted.
- A-9 – Adds in the SHTC language changes into the bill including the geographic distribution language. Adopted.
- A-15 – Creates a task force on housing taxes and fees. Adopted.
- Passed the Senate Floor 35-31.
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SIGNIFICANT UPCOMING HEARINGS
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No hearings currently of note.
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- S.F. 3695 (Port) – Federal immigration enforcement operation economic impact study requirement provision and appropriation.
- S.F. 3608 (Rest) – Requirements modification for return of excess tax increments.
- H.F. 3663 (Jones) –State Building Code; funding provided for competitive grants to assist municipalities with streamlining State Energy Code compliance report required, and money appropriated.
- S.F. 3664 (Champion) – Agency policy bill.
- H.F. 3843 / S.F. 4427 (Baker / Housley) requires a sub-committee of the Workforce Development Board to make recommendations for appropriations from the Workforce Development Fund.
- S.F. 3839 / H.F. 3806 (Port / Howard) – Housing infrastructure bond issue and appropriation.
- H.F. 3600 (Perryman) – Competitive selection processes modified for certain housing development programs.
- S.F. 4123 / H.F. 3895 (Port / Igo) – Zoning authority of local governments over certain housing types limited.
- S.F. 4158 / H.F. 4602 (Jasinski / Skraba) – BDPI bond issue and appropriation.
- H.F. 4077 / S.F. 4379 (Greenman / Maye Quade) – Municipalities prohibition from entering into nondisclosure agreements.
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H.F. 4097 ( Frazier) – Adds $2 million in additional funding for the Emerging Entrepreneur Loan Program.
- H.F. 4342 / S.F. 4527 (Frazier / Pha) – Relief program for small businesses negatively impacted by federal enforcement activity established, report required, and money appropriated.
- S.F. 4535 / H.F. 4477 (Champion / Xiong) – Minnesota business recovery loan program establishment and appropriation.
- S.F. 4565 (Hauschild) – Workforce housing development program appropriation increase provision.
- S.F. 4571 (Hauschild) – Greater Minnesota housing infrastructure grant program eligible projects modifications, greater Minnesota housing infrastructure program appropriation, and bond issuance authorization.
- S.F. 5177 (Putnam) – Tax credit establishment for employer-provided child care expenses.
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If you are interested in watching a hearing, most hearings will be viewable online and the easiest way to find the link is to visit the Legislature’s website here and click on the day you’d like to watch a hearing. Then you will be able to click on the committee and the links to the hearing broadcast. Many of the hearings can be found on YouTube as well in the respective Senate and House YouTube channels.
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- Session is scheduled to end on May 18th.
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Rural vitality webinar series & in-person forum to dive into issues impacting rural communities
Compeer Financial is hosting a Rooted & Rising series as well as the Rooted & Rising: Rural Forum that will focus on issues impacting rural economic vitality. Registration has opened for:
- Webinar Series — Designed to bring together thought leaders and practitioners to explore key topics impacting rural communities.
- June 10th Webinar: Funding the Future of Rural Communities. Click here to register.
- This webinar will provide practical insights and solutions for addressing issues such as housing, infrastructure, workforce development, and more—all critical to ensuring rural communities thrive.
- In-Person Forum
- The Rooted & Rising: Rural Forum this September will convene leaders from across Minnesota and the Upper Midwest. This in-person event will dive deeper into rural infrastructure, business needs, and community vitality. It’s a unique opportunity to connect with others who are equally passionate about supporting rural communities. Click here for more information and registration.
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2026 LEGISLATIVE SESSION RECAP
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If you found this update helpful and are interested in learning more, make sure you join us for GMNP's 2026 Legislative Session Recap on Friday, May 22, at noon!
Throughout our new series of legislative debrief sessions, each discussion featured a Capitol activity update, a review of GMNP’s policy priorities, and an open dialogue with GMNP Executive Director Darielle Dannen to hear your insights, feedback, and opportunities for increased involvement during the 2026 legislative session.
The final debrief will provide a full recap of the 2026 legislative session, review outcomes for key GMNP priorities, and preview what's coming next year.
Click the button below to register!
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The Greater Minnesota Partnership advocates for public policies and investments that stimulate prosperity throughout Greater Minnesota.
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Copyright © 2026 Flaherty & Hood, P.A., All rights reserved.
Visit us online at gmnp.org
Our mailing address is:
Greater Minnesota Partnership
525 Park St., Suite 470
St. Paul, MN 55103
Contact: info@gmnp.org or 651-259-1908
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