GMNP Update - May 1, 2026

GMNP WEEKLY UPDATE

Dear GMNP members,

The Legislature continues to work toward the end of the legislative session, with the Senate hearing Omnibus bills and the House mostly hearing smaller bills on which they have found agreement. Next week, we should see the House take up the Omnibus Housing bill and the Omnibus Workforce bill, with both currently scheduled to be heard on Monday.  

Leadership also continues to work on final negotiations, including striking a deal on a bonding package and agreeing on a potential tax bill. Expect those deals to materialize in the last days of the legislative session. If you haven’t yet reached out to your elected officials to encourage them to support a bonding package this session, please reach out now! Click here for more information on contacting your legislators. Read on for a summary of where key bills stand at present.

Best, 

Darielle Dannen

Executive Director, Greater Minnesota Partnership

SIGNIFICANT HAPPENINGS THIS WEEK

• Senate Finance Committee – Took up S.F. 4535, which creates a $100 million forgivable loan program, carving out a pot of $18 million for the Initiative Foundations in Greater Minnesota to be distributed based on demand. $82 million is available for the seven-county metro area to be awarded by current certified lending partners with DEED. 
  
  • A-12 makes technical amendments and changes to the program to address businesses that operate in multiple locations. This bill also appropriates $250,000 for a study of the economic impact from increased immigration enforcement. This was adopted.
  • A-13 creates a preference for a Minnesota institute of higher education to complete the economic impact report. The amendment was adopted.
  • A-14 adjusts the reporting requirements for the program. This amendment was adopted.
  • A-15 requires frequent reporting on repayments to the Minnesota Forward Fund. The amendment was adopted.
  • You can find the spreadsheet here for this bill.

  • Sen. Nick Frentz offered up his support for this bill and the distribution of funds to Greater Minnesota, citing the work of the Southern Initiative Foundation in his comments. 

    Sen. Eric Pratt shared his concerns about this bill and about other state program fraud. Sen. John Marty shared his support for the bill, saying that this bill is responsible and fair. The bill passed out of Senate Finance and was sent to the Floor.
  • The Committee also took up S.F. 3664 (Champion), which is the Omnibus Jobs and Economic Development policy and supplemental appropriations as amended by the A-48 amendment. You can review the spreadsheet for this bill here. The bill was laid over.
• House Ways & Means Committee – Adopted a budget resolution that will govern House spending:
  • Notably, this Budget Resolution includes a cut of $2 million for the Housing Committee, and then adopts small increases for the Workforce, Labor and Economic Development Finance bill of $358,000 and spending of $401,000 from the workforce development fund. 
    
    • House Budget Resolution (BUDRES06).pdf
    • House Budget Resolution (BUDRES06) Spreadsheet.pdf
  • The Committee heard H.F. 3732 (Pinto), which includes funding for DEED, modifications to economic development and workforce development policy, changes to labor and industry policy, cancelling and modifying prior appropriations, fees modified, reports required, and money appropriated. You can find the spreadsheet for this bill here. The bill passed out of Committee and was sent to the General Register.
    • A-6 amendment would add the business relief program back into the bill. DFL members shared their urgency to pass this program. Rep. Jon Koznick shared his view that this program won’t be fair, as some businesses will not receive funds. Chair Dave Baker also shared his view that businesses can access PROMISE Act funds, noting that there is a balance of about $70 million, and that there also needs to be business mandate relief, which he wishes the Legislature could have delivered.  Rep. Klevorn reminded members that there is no way for businesses to plan for the kind of business impacts the federal surge had. The amendment failed to pass on a party-line vote.
    • A-7 amendment which appropriates $41,000 in FY27 for the new healthcare workforce grant program under 116L.92. The amendment was adopted.
    • A-8 amendment would create a federal employee personal loan guarantee program. The amendment failed on a party-line vote.

• Senate Tax Committee – Heard S.F. 5052 (Rest), as amended by the A-1 amendment. You can review the spreadsheet for the bill here. Notable provisions include: 
  • 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. 

Thursday 4/30/26

• Senate Floor – Took up S.F. 4535 (Champion) which creates and appropriates funding for the Minnesota Business Recovery Loan Program.  
  • A-16 amendment would make technical adjustments to the reporting requirements. Adopted. 
  • A-24 amendment would appropriate up to 5% of the total funding to the Office of the Legislative Auditor or Bureau of Criminal Apprehension to evaluate compliance with the requirements of this section. 
  • A-52 amendment would require the DEED Commissioner to authorize up to 5% of the funding for fraud investigations. 
  • A-18 amendment would require documentation to determine eligibility. Adopted. 
  • A-20 amendment would make technical updates to the loan forgiveness provision. Adopted. 
  • A-53 amendment would prohibit any business being found guilty of committing fraud be prohibited from receiving these funds. Adopted.
  • The bill passed 35-31.

SIGNIFICANT UPCOMING HEARINGS

KEY BILLS WE'RE WATCHING

• 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.
• 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.

HEARINGS

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.

KEY DATES

• Session is scheduled to end on May 18th.

2026 LEGISLATIVE SESSION RECAP

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!

CONTACT & CONNECT

Darielle Dannen, Executive Director

darielle@gmnp.org

(651) 259-1908

Emma Nelson, Membership & Operations

emma@gmnp.org

(651) 259-1936

Alex Wildfang, Media & Communications

ahwildfang@flaherty-hood.com

(651) 259-1917

Visit us online at www.gmnp.org

The Greater Minnesota Partnership advocates for public policies and investments that stimulate prosperity throughout Greater Minnesota.

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