GMNP Update - March 27, 2026
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Dear GMNP Members,
Thank you to everyone who was able to join the CGMC Day on the Hill this week to continue advocating for our priorities! It was great to see many of you in St. Paul–if you’ve got great photos from your lawmaker meetings, I’d love to see them.
Friday is the deadline for policy bills to have advanced out of committees of jurisdiction this week, and you could tell that by the agendas that many committees were juggling. That also continued to follow the recent pattern that many, many bills are failing to advance through House Committees. Notably, the House bill that would preempt local zoning and land use decisions (H.F. 3895, authored by Rep. Spencer Igo) failed to advance out of the House Elections Finance and Government Operations Committee this week. It’s unclear where the bill goes from here, but House Speaker Lisa Demuth told a Star Tribune reporter on Wednesday that the bill still has a path to advance. In a similar vein, the House Workforce Committee heard multiple bills that would make changes to the Paid Leave program, but all bills failed to advance out of the committee and were held over for possible inclusion in a future omnibus bill.
It was also notable this week that the Senate bills for economic relief for small businesses impacted by recent federal actions stalled in the Senate Jobs Committee after differences of opinion surfaced during a hearing on Monday.
The Governor also began a push this week to encourage the Legislature to pass a bonding package this session. The Governor is advocating for his bonding recommendations and is expected to continue his advocacy efforts in the coming weeks.
Best,
Darielle Dannen
Executive Director, Greater Minnesota Partnership
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SIGNIFICANT HAPPENINGS THIS WEEK
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- Senate Jobs Committee – Heard bills that would provide small business economic relief funding:
- S.F. 4527 (Pha) – Small businesses negatively impacted by federal enforcement activity relief program establishment and appropriation.
- This bill was tabled for possible inclusion after a lengthy discussion about some of the details around the program.
- S.F. 4535 (Champion) – Minnesota business recovery loan program establishment and appropriation.
- Scott Marquardt, President of the Southwest Initiative Foundation, joined a group of supporters to testify in support of this bill. This bill was tabled for possible inclusion after lengthy testimony and discussion.
- Elections Finance and Government Operations Committee – Heard H.F. 3895 (Igo); Zoning authority of local governments over certain housing types limited.
- The bill had lively testimony from cities that shared their concerns about the bill. Thank you to everyone who testified including the cities of Monticello, Grand Rapids, Cannon Falls, and Detroit Lakes (CGMC members) which were joined by the city of Woodbury.
- All cities came out in opposition to the bill, and the common theme was that it is construction cost and infrastructure cost that was driving the high cost of housing development and despite this, cities are still building new housing and adopting new planning strategies to increase density. The motion to pass the bill and send to general register failed 5-7.
- House Workforce Committee – H.F. 4097 (Frazier); Money transferred for emerging entrepreneur loan program.
- The bill was amended so that the bill increases funding for the emerging entrepreneur loan program by $2 million and the small business partnerships program by $1 million. Zach Tabatt, Vice President for Economic Opportunity at the Initiative Foundation, testified in support of the bill. The bill was tabled for possible inclusion in an Omnibus bill.
- Senate Housing and Homelessness Committee – Heard S.F. 4571 (Hauschild).
- This bill provides $15 million in General Obligation bonds to the Greater Minnesota Housing Infrastructure Grant program and also makes a policy change to the program to allow these funds to support housing development funded through the Greater Minnesota Workforce Housing Development Program.
- The overwhelming sentiment from testifiers was that this program has been integral to supporting housing development, and ongoing funding is critical to Greater Minnesota communities. After testimony concluded, the bill was sent to the Capital Investment Committee.
- Thank you to everyone who testified in support of additional funding and a clarifying policy change to the program, including Sarah Brunn (City Administrator, City of Foley), Chad Adams (CEO of Southwest Minnesota Housing Partnership), and Jeff Brand (Director of the Cook County HRA).
Wednesday 3/25/26
- House Workforce, Labor and Economic Development Finance and Policy Committee – Heard a package of bills that would make changes to the the rest break and meal break requirements, as well as three bills that would make changes to the Minnesota Paid Leave law. None of the bills were able to be voted out of committee and were laid on the table.
- H.F. 4110 (Zeleznikar) – Rest break and meal break requirements adjusted under certain circumstances.
- H.F. 2113 (Robbins) – Small employers exempted from requirement to provide paid leave.
- H.F. 4569 (Bakeberg) – Modifying the definition of seasonal employee under Minnesota Paid Leave law.
- H.F. 4414 (Baker) – Elected officials exempted from Minnesota Paid Leave Law.
Thursday 3/26/26
- House Workforce, Labor and Economic Development Finance and Policy Committee – Heard a presentation on the Report of the Review of Competitive Grant Processes from the Department of Employment and Economic Development (DEED).
- The co-chairs asked a number of questions getting at the question “if competitive programs are responsive to community needs.” DEED shared their community reviewer process, the way the Department evaluates workforce grantee outcomes, and expressed an interest in continued improvement. The co-chairs expressed their interest in continuing conversations about competitive vs. legislatively directed grants.
- House Tax Committee – Heard two bills focusing on child care affordability and one making modifications to the State Housing Tax Credit (SHTC) to make the program more useful.
- H.F. 495 (West) – Day care costs paid by the taxpayer provided a subtraction.
- There was a testifier opposing the bill who asked lawmakers to instead address the systemic problems that make child care too expensive and employee pay too little. Rep. Andy Smith raised that this would cost $100 million due to the revenue noted and expressed concerns that this bill is not income-limited in any way. Chair Athena Hollins expressed concern that this bill would primarily benefit high-income households. Rep. Aisha Gomez also shared her concerns about the multiple aspects of the child care sector that are not working well–costs, pay, and availability, and how this bill does not address those things.
- H.F. 4321 (Zeleznikar) – Individual income tax conformed to federal exclusion from gross income for dependent care assistance programs.
- The Agency testified in support of the bill and noted that this is also reflected in the Governor’s recommendations.
- H.F. 3902 (Igo) – Eligible recipients for Minnesota housing tax credit contributions modified, and credit sunset repealed.
- The committee adopted the A-4 amendment, which is technical. Rep. Spencer Igo discussed the program’s success and the bill’s goal to support additional housing. The bill had a number of testifiers who shared their support for the bill. Rep. Kristin Robbins raised some concerns about the geographic balance language and expressed a concern that her communities could be excluded. Members asked questions about the make-up of contributions to the program and how contributors can participate. Rep. Michael Howard shared his support for the program, shared some interest in allocating additional funding for the program in the future and for eliminating the program’s sunset. Rep. Aisha Gomez shared her views on sunsets and that the point of sunsets are to require bills to return to the Tax Committee for additional discussions and updates if needed. She shared she is open to extending the program’s sunset but not eliminating it. The bill was laid over for possible inclusion in the tax omnibus bill.
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SIGNIFICANT UPCOMING HEARINGS
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Lawmakers are on legislative break from March 27 at 5:00 p.m. To April 7 at 8:00 a.m. Many members will be meeting with constituents in-district during this period, and it can be a good time to connect with them on key legislative initiatives.
Additional hearings are likely to be posted throughout the week.
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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.
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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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COMMITTEE DEADLINES / KEY DATES
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- Easter/Passover/Eid Recess
- Begins on: March 27 at 5:00 p.m.
- Legislative activities resume on: April 7 at 8:00 a.m.
- Friday, March 27 at 5 p.m.: Committees must act favorably on bills in the chamber of origin and committees must act favorably on bills, or companions of bills, that met the first deadline in the other body.
- Friday, April 17 at 5 p.m.: Committees must act favorably on major appropriation and finance bills.
- Session is scheduled to end on May 18th
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MONTHLY LEGISLATIVE DEBRIEF SESSIONS
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If you found this update helpful and are interested in learning more, make sure you join GMNP's monthly Legislative Debrief Sessions!
Each debrief session will feature 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.
These sessions are meant to be informal discussion-based conversations among GMNP members.
Sessions will take place on the last Friday of each month during the legislative session (with the exception of May). All meetings will be held virtually via Zoom from 12:00pm-1:00pm.
Visit GMNP's event calendar on our website for details and registration.
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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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