The 2026 legislative session adjourned last night with the usual wins and losses.

GMNP Update - May 18, 2026
 
GMNP Update: A Newsletter for Members of the GMNP
 

GMNP WEEKLY UPDATE
 

Dear GMNP members,

 

The 2026 legislative session adjourned last night with the usual wins and losses. Many significant bills were passed in the last days of the legislative session, but there are a couple of notable misses—the Legislature was unable to pass a Jobs Omnibus bill or a small-business recovery package this year. They also failed to include changes to the State Housing Tax Credit in either the tax bill or the housing bill this year—a huge disappointment after excellent testimony and favorable hearings. In more positive news, they were able to pass a bonding package and a tax bill in the final hours, and those bills included some funding for key economic development programs. The session was also notable for not passing any state-level land use/zoning provisions in any bills for the third consecutive year. Thank you everyone for all your hard work this session!

 

If you read on below, you'll find a summary of the key bills we were advocating on this session—passed provisions in green and unpassed provisions in red. Everything below is yet to be signed by the Governor—but his signature is expected.

 

Best, 

 

Darielle Dannen

Executive Director, Greater Minnesota Partnership
 

Business Recovery Package (Not Passed)

 

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.

Jobs Omnibus Appropriations Bill (Not Passed)

 

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.

Housing Omnibus Bill (Passed)

  • $14.275 million for the Greater Minnesota Workforce Housing Grant Program.
  • $38 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 105-28 and Senate Floor 42-25, and was sent to the Governor.

Tax Bill (Passed)

 

Conference Committee Agreement – (H.F. 2438) which includes some key provisions:

  • Federal tax conformity
  • Changes to the dependent care credit
  • Does not include any changes to the SHTC
  • Passed House and Senate – sent to the Governor.

Capital Investment Package (Passed)

  • Appropriates $1.2 billion (including H.F. 719) which includes the GO provisions (cash is in the sister-bill H.F. 2484). H.F. 719 includes:
    • $2 million BDPI
    • $2 million IBDPI
    • $2 million TEDI
    • $2 million DCYF early childhood facilities grants
    • Passed House 122-11 and Senate 60-7 and sent to the Governor.

Child Care Licensing Modernization (Passed)

  • Health & Human Services Omnibus Bill – Conference Committee Report (S.F.4612) 
    • Article 12, starting at line 179.17, for child care center modernization.
    • Article 13, starting at line 246.10, for family child care.
    • Both Articles solidify multiple years of work to improve, streamline, and ease child care licensing for family, center and special child care.
    • Passed the Senate 35-26 and the House 108-26 and sent to the Governor.
 

EVENTS

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.
 

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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