We are officially halfway through the 2026 Minnesota Legislative Session, and MCCD’s Policy & Advocacy team continues strategizing with our community partners to advance the key economic development and housing policies that matter most to our consortium members.
Want to know what’s going on at the Capitol? Looking for updates on our policy agenda items? Keep reading to get the latest information on our advocacy and progress on priority legislation.
Governor Walz has released recommendations for a supplemental budget (you can view the entire budget here). He recommended $100 million for affordable housing, which includes $34M for down payment assistance, $33M for the Family Homeless Prevention and Assistance Program (FHPAP), and $33M for permanent supportive housing.
Housing Infrastructure Bonds (SF 3839/HF 3806): MCCD is leading work to secure $200 million in Housing Infrastructure Bonds. Carried by Chair Port and Co-Chair Howard, HIBS have been laid over for inclusion in the House Housing committee omnibus bill and have been sent to the Senate Capital Investment Committee for further consideration. The Governor recommended $50 million in HIBs in his capital budget in January, so we are hopeful for its inclusion at the end of the session.
Emergency Rental Assistance: On March 11, the Senate passed $40 million in emergency rental assistance. The same bill was heard later that same day in the House Housing Committee, where the bill failed to pass out of committee on party lines. Following the bill’s inability to move out of the House Housing Committee, DFL members tried a procedural move to suspend the rules and bring the bill to the floor, but the vote failed, again on party lines. The path forward for this specific emergency rental assistance bill is very unclear unless House GOP leadership changes their position. FHPAP (update below) is still up for consideration.
Family Homeless Prevention and Assistance Program (FHPAP) (HF 4117/SF 3614): FHPAP is seeking a one-time increase of $35 million. FHPAP is up for consideration in the Senate Finance Committee for inclusion in a supplemental budget bill. It is unlikely to have a stand-alone hearing in the House, but we remain confident in all three Committee Chairs’ commitment to the program.
Starter Homes Act (HF 3895/ SF 4123): The Starter Homes Act was heard in the House Elections, Finance, and Government Operations Committee at the end of March. The committee voted 5-7 against advancing the bill to the House floor. The bill is not dead, but for now it is stuck in committee. Conversations will continue to find a compromise that will move the bill forward.
Our Future Starts at Home (SF 2621/ HF 3279): The Our Future Starts at Home bill was heard in the Senate’s State and Local Government Committee on March 24. After the bill’s most challenging hearing to date, the committee voted favorably to send the bill to the Senate Taxes Committee where it sits now for consideration.
$100 Million for Small Business Recovery (HF 4342/SF4527): We had a hearing for this bill in the Senate Jobs Committee on Monday, March 23rd. The hearing went well, even with the pushback we both anticipated and received from GOP senators. That same afternoon, shortly after the Senate hearing, we co-hosted an advocacy push on the Minnesota House Floor, which had great turnout from community partners who spoke to lawmakers about why this legislation is critical. We also had a successful hearing on April 8th in the House Workforce, Labor, and Economic Development Committee.
We will likely plan additional advocacy events later in the legislative session. To stay in the loop on future advocacy opportunities, sign up for the MCCD Rundown newsletter.
Emerging Entrepreneur Loan Program & Small Business Assistance Partnerships Program (SF 4272/HF 4097): The bill had a smooth hearing last week on Tuesday, March 24th. By the House Workforce, Labor, and Economic Development Finance & Policy Committee. Thank you to Zach Tabatt from the Initiative Foundation for testifying in support of the bill.
Strengthen Minnesota Homes (HF 4223/SF 4632): The Strengthen Minnesota Homes bill (a $35M one-time request) will likely be scheduled for a hearing in the House Commerce Committee after 1st and 2nd deadline, following the legislative break. This will be an informational hearing to lay the groundwork for next year.
The MCCD Policy & Advocacy team will continue sharing weekly legislative updates via email to our consortium members. If you are a consortium member and are not receiving these updates, please contact Kelly Law, our Senior Policy & Field Building Advisor, to sign up.
We will also share upcoming advocacy opportunities and action alerts on the MCCD Rundown newsletter. If you are a community partner who would like to stay plugged in for ways to support these bills, subscribe to our newsletter.