GMNP Update - April 17, 2026

GMNP WEEKLY UPDATE

Dear GMNP Members,

Today wraps up a deadline week for all fiscal bills except for tax bills and bonding bills. That means that all committees with fiscal oversight have moved, or attempted to move, their omnibus appropriations bills out of committee. The House, however, continued to struggle to pass bills out of its committees, with a number unable to pass an omnibus bill.

It remains undetermined how the Legislature will proceed without comparable House bills, so we will be watching the Ways and Means Committee as they wrestle with this question next week. The good news is that the Jobs/Workforce and Housing Committees were able to pass bills out of both their Senate and House Committees, and while those bills are quite different, they are a place to start. Read on for a summary of those bills.

Best, 

Darielle Dannen

Executive Director, Greater Minnesota Partnership

SIGNIFICANT HAPPENINGS THIS WEEK

• House Fraud Committee – Discussion on the Governor's anti-fraud proposals:
  • • Department of Human Services Overview
    • Minnesota Management and Budget Overview
    • Department of Administration Overview
    • Department of Public Safety/Bureau of Criminal Apprehension Overview
    • Department of Children, Youth, and Families Overview
    • MN Council of Health Plans
    • Charter School Discussion
  • Members had extensive conversations with the respective Commissioners of the various Agencies impacted by the Governor’s anti-fraud proposals. Chair Kristin Robbins shared her opinion that, while there have been improvements made to prevent fraud, she believes proposals need more teeth, whistleblower feedback needs to be taken more seriously more often (she shared that she has received hundreds of such reports), and a zero-tolerance policy. Rep. Isaac Schultz expressed concern about DHS and DCYF and called for them to be specifically called out in legislation.
• House Ways & Means Committee – Presentations on the economic impact of Operation Metro Surge.
  • The Committee heard testimony from multiple testifiers about the impacts of the recent federal immigration surge, with testifiers urging the state to pass financial support to help with community recovery.
  • Committee Documents:
    • Minneapolis Preliminary Impact Assessment.pdf
    • Emergency Small Business Assistance.pdf
    • Small Business Grants Handout.pdf
    • Operation Metro Surge Testimony.pdf
    • New State Data Confirm Operation Metro Surge's Toll on Minnesota's Economy.pdf
    • Children's Defense Fund-MN Letter on Impacts of
    • Operation Metro Surge 041026.pdf
    • CDF-MN Amicus Curiae Brief.pdf
    • 4-13-26 Ways & Means Agenda.pdf
    • Joint Letter - Impact of OMS on 18 Small Businesses.pdf
  • Rep. Baker expressed his view that small businesses do need help, shared that he has been personally affected, and asked Minneapolis Mayor Jacob Frey about what the city has done to provide that support. Mayor Frey then shared an overview of the multiple supports the city has provided. Rep. Baker also shared his opinion that the state should impose fewer mandates on businesses. 

• House Workforce, Labor & Economic Development Committee – Heard H.F. 4884 (Pinto), which is the DEED and DLI Supplemental Budget Bill that includes the Governor’s supplemental budget recommendations.
  • This informational-only hearing for H.F. 4884 included presentations from DEED Commissioner Matt Varilek and DLI Commissioner Nicole Blissenbach.
  • Other bills on the agenda included:
    • H.F. 3732 (Pinto) – Different unfunded programs of DEED repealed, and conforming changes made, as amended by the Author’s amendment and further amended. This bill will become the vehicle for the Workforce Committee’s omnibus bill.
    • H.F. 4598 (Baker) – Building code administration modified. This bill will become the vehicle for the Worker’s Compensation Advisory Council policy recommendations.
• Senate Housing & Homelessness Prevention Committee – Heard the following bills:
  • S.F. 5060 (Port) – Minnesota Housing Finance Agency supplemental budget adjustments. 
    • These are the Governor’s supplemental budget recommendations, which the Agency presented. Sen. Lindsey Port noted that the Committee was only approved to move out appropriations bills to fund emergency rental assistance ($40 million) and to fund housing infrastructure bonds ($50 million), but has not been given a spending target beyond those items.
  • S.F. 0203 (Port) – Housing infrastructure bonds issuance authorization and appropriation; this is the Housing Finance and Policy Omnibus bill.
    • A DE amendment and additional amendments are posted. The A-1 DE amendment is the bill the Committee is moving forward with. This bill includes some of the language modifying the 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.
      • A-2 – ADOPTED
      • A-3 requires resources to be spent in Greater Minnesota; this was GMNP policy language for the Housing Infrastructure grant program – ADOPTED
      • A-8 – ADOPTED
      • A-4 as amended by the A-14 – ADOPTED
      • A-13 limits private equity ownership of single-family homeownership – ADOPTED
    • The bill was passed to the Finance Committee unanimously.
• Senate Jobs Committee – Heard S.F. 4535 (Champion), which establishes the Minnesota business recovery loan program and provides appropriation.
  • 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 some 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.

  • The Committee also adopted two other amendments: the A-6 and A-7. Those amendments keep the funding level at $100 million and fund the program from the Minnesota Forward Fund. Sen. Eric Pratt shared his opposition to the bill. Sen. Rich Drahiem also shared his opinion that the Committee has not done enough to stop fraud and his wish that the bill had more teeth to penalize fraud. Sen. Susan Pha pushed back against folks who expressed concerns, reminding members why this work is important and needed to support impacted businesses. 

  • The bill was passed out of Committee to the Finance Committee.
• Senate Omnibus Appropriations & Policy Bill – S.F. 3664 (Champion) 
  • DEED unfunded programs repealer and conforming changes provision as amended by the A-2 amendment.
  • The bill fails to include the Agency’s policy changes, including codifying the Pathways to Prosperity program and the Drive for Five program, as well as language that would modify the Innovative Business Development Public Infrastructure Program to allow the development restrictions to sunset after 10 years, consistent with similar programs.
  • The bill was passed out of Committee to the Finance Committee.
• House Housing Finance & Policy Committee – Heard H.F. 1141 (Howard), which includes the authorization of issuing housing infrastructure bonds authorized and money appropriated; this is the Housing Finance Bill as amended by the DE2. 
  • This bill appropriates $20 million for the Greater Minnesota Workforce Housing grant program, $40 million for FHPAP, and $150,000 for homebuyer education training. The bill also authorized $100 million in housing infrastructure bonds. The policy language in the bill also requires multiple changes to agency reporting on fiscal balances.
  • Members of both parties had positive comments about the bill. The bill passed out of Committee and to the Ways and Means Committee.

Thursday 4/16/26

• House Workforce, Labor & Economic Development Committee – Heard the Workforce and Labor Finance and Policy bill (H.F. 3732), as amended by the DE2, which includes some notable provisions: 
  • 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
  • The Committee considered an amendment (A-2) by Rep. Cedrick Frazier, which would have reinstated the proposal for small business economic relief. The amendment failed to be adopted on a party-line vote. The Committee did adopt the A-4 amendment by Rep. Emma Greenman, which adds language around requiring public and stakeholder engagement as well as lawmaker involvement with the Office of Community Investment. The Committee also discussed the new Office of Community Investment (notes above) with Rep. Dave Baker expressing his interest in better understanding the outcomes of appropriations and his opinion that establishing this Office of Community Engagement would further that understanding.
  • The bill passed out of Committee as amended and was sent to the Ways and Means Committee.

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.

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.

MONTHLY LEGISLATIVE DEBRIEF SESSIONS

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