GMNP Update - April 24, 2026
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Dear GMNP Members,
We’ve reached the point in the legislative session where both bodies of the Legislature are spending a lot of time on the floor passing big Omnibus bills, and legislative leadership is meeting to hash out the big deals that will come together (hopefully) at the end of the legislative session. Members are reporting that they are making good progress on negotiating a bonding package, which is welcome news to many.
I also expect the Housing Omnibus bills to be up on the floor next week in both the House and the Senate. You’ll notice that the House and Senate have taken a different approach to their Housing bills—the House has dug into the interest that Minnesota Housing has been accruing on appropriated funds that have not been distributed or were slow to be distributed, and in a hearing earlier in session, they testified that they have around $100 million in interest. The House has bipartisan support for spending a small amount of that interest on housing needs, including replenishing the funding for the Greater Minnesota Workforce Housing grant program! The Senate has not tapped these interest funds in its Omnibus bill, but Sen. Rich Draheim did make a push during a committee hearing to similarly use some of those funds for the Greater Minnesota Workforce Housing grant program.
I’m looking forward to more conversations about what's being funded and how in that Housing Omnibus bill as those bills pass their respective floors and head to conference committee. Read on for a summary of where key bills stand at present.
Best,
Darielle Dannen
Executive Director, Greater Minnesota Partnership
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Jobs & Workforce Committee Omnibus Bills
Senate
- Senate Jobs Economic Recovery – S.F. 4535 (Champion)
- Minnesota business recovery loan program establishment and appropriation, as amended by the A-2 amendment.
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The bill still includes $18 million to be distributed to the MIFs, but now includes the language "based on the demand of the region serviced by the initiative foundation (see lines 1.11 - 1.14). You'll find other adjustments to the language throughout the bill, including the loan participation section at 2.24 - 3.33, the deferred payments language at 3.30, and some updates to the loan forgiveness language at 4.1 - 4.4.
- Senate Omnibus Appropriations & Policy Bill – S.F. 3664 (Champion)
- Department of Employment and Economic Development (DEED) unfunded programs repealer and conforming changes provision, as amended by the A-2 amendment.
House
- Workforce, Labor, & Economic Development Finance & Policy Bill – H.F. 3732 (Pinto)
This bill includes some notable provisions:
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- Creates a new subcommittee of the Governor's Workforce Development Board to recommend grants from the Workforce Development Fund up to $10 million dollars worth. (See lines 3.5 - 4.13)
- Creates a new Healthcare Workforce Grant Program (but does not fund it).
- Extends UI benefits to laid off iron ore mining workers. (See lines 12.19 - 14.4)
- Creates an Office of Community Investment at DEED that provides oversight, strategic direction, program design, and tracks grant outcomes.
- The House funds two things in their bill (both included in the policy language noted above):
- Office of Community Investment at $400,000 ongoing annually
- Subcommittee for the Governor's Workforce Development Board at $401,000 ongoing annually
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Housing Omnibus Bills
Senate
- Senate Housing & Homelessness Prevention Committee – S.F. 0203 (Port)
- Housing infrastructure bonds issuance authorization and appropriation; this is the Housing Finance & Policy Omnibus bill.
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This bill includes some of the language modifying the State Housing Tax Credit (SHTC) to allow those funds to be coupled with the Workforce Housing Grant program, but does not include the geographic balance requirement language or the sunset language. The Committee also amended the policy language for the Greater Minnesota Housing Infrastructure grant program to better align it with the Greater Minnesota Workforce Housing program.
House
- House Housing Finance & Policy Committee – H.F. 1141 (Howard)
- Issuance of housing infrastructure bonds authorized, and money appropriated; this is the Housing Omnibus bill.
- This bill appropriates $20 million for the Greater Minnesota Workforce Housing grant program, $40 million for the Family Homeless Prevention and Assistance Program (FHPAP), and $150,000 for homebuyer education training. The bill also authorized $100 million in housing infrastructure bonds. The bill's policy language also requires multiple changes to agency reporting on fiscal balances.
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SIGNIFICANT HAPPENINGS THIS WEEK
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- Senate Finance Committee – Took up S.F. 203, which includes the Omnibus Housing provisions and supplemental appropriations.
- The Committee adopted an amendment requiring more detailed reporting by Minnesota Housing on its fiscal health. Sen. Rich Draheim offered an amendment to use some of the excess Minnesota Housing interest to fund the Greater Minnesota Housing Workforce Development Program, but the amendment did not pass.
- House Ways & Means Committee – Took up H.F. 1141, which is the Housing Omnibus bill. The Committee heard an overview of the bill.
- Chair Mike Howard highlighted that funding appropriated in the bill was taken from surplus interest the Agency earned on appropriations not yet spent, beyond what is necessary to fund staff. Chair Howard noted that the bill includes updates to Minnesota Housing reporting requirements that will provide the Legislature with greater transparency into the Agency’s fiscal health and better return interest earnings to the state General Fund when they exceed staffing needs. The Agency has testified and shared in writing their feedback that using some of the interest they have accrued on state appropriations (Minnesota Housing currently has about $80 million in interest) to re-appropriate for housing programs will cause issues at the Agency, and that this will “damage” the relationship between the Agency and the Legislature. Members of both parties disagreed with the Agency’s assertion, noting that this use of accrued interest is prudent and agreed that some of those dollars should be directed to the state’s housing needs. The bill was referred to the General Register.
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SIGNIFICANT UPCOMING HEARINGS
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- Senate Finance Committee (8:30am) – Will hear both the Senate Omnibus Jobs bill and the business recovery loan program bill.
- Agenda:
- S.F. 4535 (Champion) – Minnesota business recovery loan program establishment and appropriation.
- S.F. 3664 (Champion) – Omnibus Jobs and Economic Development policy and supplemental appropriations.
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.
- 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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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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