It’s been a fast and furious start to the legislative session this year. We’re working on a stack of bills related to child care, housing, and infrastructure, many of which should be introduced and start having hearings soon.

GMNP Update - February 27, 2026

 
GMNP Update: A Newsletter for Members of the GMNP
 

GMNP WEEKLY UPDATE

 

Dear GMNP Members,

 

It’s been a fast and furious start to the legislative session this year. We’re working on a stack of bills related to child care, housing, and infrastructure, many of which should be introduced and start having hearings soon. 

 

Many committees this week held hearings on the impacts of the recent federal activities, including a hearing in the Senate Jobs Committee about the economic impacts of those activities on Greater Minnesota small businesses. Fraud also continues to be a topic of interest in most committees, and the Governor released a new package of fraud-prevention legislation on Thursday, which will likely spur lively discussion. There was a flurry of activity on gun control earlier this week, where bills failed on a party-line vote, but families who were impacted by recent gun violence were in attendance at the Capitol.

 

This morning, we got our updated budget forecast for the state, and it was significantly improved! The FY2026-27 projected balance is now $3.7 billion, $1.3 billion higher than November estimates. The improvement is due to a slightly improved economic outlook. Things are still challenging starting in FY2029, and the state continues to face a structural imbalance in the future, but this is great news for the state budget. More details will become available later today following a press conference with the Governor. 

 

Best, 

 

Darielle Dannen

Executive Director, Greater Minnesota Partnership

 

SIGNIFICANT HAPPENINGS THIS WEEK

GMNP and the CGMC, along with others in the housing space, provided feedback on the draft MHFA Climate Roadmap on Monday – thank you to members who provided insights and feedback on the draft! 

 

Tuesday 2/24/26  

Wednesday 2/25/26 

  • House Workforce, Labor and Economic Development Committee 
    • Heard an update from Explore Minnesota about their activities promoting tourism to Minnesota.  
  • Senate Jobs Committee – Held an informational hearing about the Economic Impacts of Operation Metro Surge:
    • Mayors Her and Fry testified about the economic impacts of the federal surge on their cities and asked the state for some economic relief. The mayors from Richfield and Golden Valley also testified.  
    • A number of individual businesses testified about the economic damage this surge has done to their business.  
    • Explore Minnesota testified to the economic impacts of metro surge on Minnesota’s tourism and hospitality industry: Explore MN Economic Impact PP
    • Scott Marquardt and Amanda Quam testified from the Southwest Initiative Foundation and West Central Initiative Foundations to highlight the economic impacts this federal surge has had on Greater Minnesota businesses.

Thursday 2/26/2026  

  • Governor Walz – Announced an anti-fraud package. The Governor shared his commitment to tackling fraud and his interest in passing his package to end loopholes. This package is purported to include a prohibition for direct appropriations. Senator Bobby Joe Champion (DFL-59) has already issued a strong response condemning the Governor’s proposal to end direct appropriations.

 

SIGNIFICANT UPCOMING HEARINGS

Tuesday 3/3/26  

  • Senate Housing and Homeless Committee (12:30pm)
    • Research Overview: How Housing Supply Affects Affordability - Libby Starling, Senior Community Development Advisor, Federal Reserve Bank of Minneapolis
    • S.F. 3839 (Port Housing infrastructure bond issue and appropriation.
    • S.F. 2621 (Mohamed) – Constitutional Amendment proposal to increase the sales tax rate by three-eighths of one percent and dedicating the receipts for housing purposes; Homeownership opportunity fund, community and household stability fund, and rental opportunity fund establishment; fund councils establishment. 
    • The State Housing Tax Credit Bill is expected to be added to the agenda for a hearing as well.
    • Letter of support and requests to testify must be submitted by 12:30pm on Monday, March 2, to committee administrator Jack Dudley: jack.dudley@mnsenate.gov
  • House Housing Finance & Policy Committee (3:00pm)
    • Starter Homes Act The Starter Homes Act is the new "Yes to Homes" bill.

    • State Housing Tax Credit Bill
    • Handouts, written testimony, and testifier requests must be in PDF format and emailed to the Committee Administrator Lorie Cousineau: lorie.cousineau@house.mn.gov
    • Bill numbers for the legislation listed above have not been posted yet, but we will share that information as soon as possible
Here is an overview of the State Housing Tax Credit bills that will be discussed in the House and Senate: 
  • Repeals the current 2028 program sunset. While this provision will be in the House bill, authored by Representative Spencer Igo, it is not in the Senate bill authored by Senator Carla Nelson. A stand alone bill to repeal the sunset may be introduced in the Senate. 
  • Aligns the State Housing Tax Credit program with the Greater Minnesota Workforce Housing Development Program, a change supported by Minnesota Housing, so that these programs can be paired. This provision will be in both the House and Senate bills. 
  • Geographic balance of the program between the 7-county metro and outside the 7-country metropolitan area, with language to be similar to that providing geographic balance for other programs. This provision will be in both the House and Senate bills. We are still working with Minnesota Housing on best language for this provision.

Sign-on letter to Minnesota lawmakers in support of strengthening and expanding the State Housing Tax Credit. MHP is collecting signatures for sign on letters. Separate letters with the same text will be submitted to the House and Senate Committees. Deadline for sign-on is 11:00 am on Monday, March 2. This letter is for organizational signers only. Review the letter and sign-on here.

 

 Additional hearings are likely to be posted throughout the week.

 

KEY BILLS WE'RE WATCHING

  • S.F. 3664 (Champion) – Agency policy bill.
  • S.F. 3839 (Port) – Housing infrastructure bond issue and appropriation.
  • H.F. 3600 (Perryman) – Competitive selection processes modified for certain housing development programs.
 

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.

 

COMMITTEE DEADLINES / KEY DATES

Legislative Breaks:    

  • Easter/Passover/Eid Recess 
    • Begins on: March 27 at 5:00 p.m. 
    • Legislative activities resume on: April 7 at 8:00 a.m. 

Committee Deadlines:   

  • 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
 

MONTHLY LEGISLATIVE DEBRIEF SESSIONS

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.

 

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.

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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