2026 Legislative Session - Week 12

May 12, 2026

The legislature is due to adjourn the 2026 legislative session on May 18th, but with just days remaining, final deals are still coming together. On Friday, the first conference committees started meeting including the Housing Conference Committee which compared the two bills and took public testimony. The conferees seemed confident on Friday during that hearing that they could come to an agreement on differences between their bills. 

There also remain some outstanding question marks as final deals come together - we're still waiting for both a House Tax Omnibus bill and an agreement on a bonding package. Some of the holdup is negotiating a deal that will support HCMC, which is a top priority for lawmakers but the details are still being hashed out and likely impacts a tax omnibus package. There has also been disagreement about the size of a bonding package which continues to hold up what projects and programs are funded. Expect to see some of these deals to get finalized this week, likely coupled with some of the usual end-of-session drama that so often creeps up as members trade deals and the legislature will need to adjourn their official business by midnight on Sunday so many of these deals may come together this weekend.

A summary of where key bills stand at present: 

Bill Senate House
 Business Recovery Package  SF4535 (Champion) $100 million business recovery loan program. $18 million for MIFs based on demand. Passed Senate 35-31 on 4/30/26.  HF4477 (Frazier) $100 million business recovery program. Offered as an amendment to HF3732 but failed on a party-line vote.
 Jobs Omnibus Appropriations Bill  SF3664 (Champion) Omnibus appropriation and policy bill. Includes Agency policy fixes. Appropriation language added to SF4059 Omnibus Finance supplemental appropriations bill (just WDF appropriations). Passed Senate floor 35-31.

 HF3732 (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 98-35 on 5/4/26.
Housing Omnibus Bill

 SF0203 (Port) Housing Finance and Policy Omnibus bill

  • Authorizes $50M in HIB bonds
  • Makes changes to Housing Infrastructure grant program to align with workforce housing
  • Makes changes to SHTC to better align with workforce housing
  • Policy language around agency reporting on fiscal balances and restrictions on interest spending
  • Passed Senate floor 35-31 on 5/7/26.
  HF1141 (Howard) Housing Finance and Policy Omnibus bill
•    $20 million for Greater Minnesota Workforce Housing grant program 
•    $40 million 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 99-32 on 5/4/26
 Tax Bill

 SF5052 Senate Omnibus Tax Bill

  • Includes the Governor’s expansion of the dependent tax credit
  • Modifies LAHA/SAHA to allow funds to be used for emergency shelter facility construction and extends by two years the deadlines to spend the aid on qualifying projects.
  • Modifies the SHTC to require that 50% of the tax credits for projects in Greater Minnesota
  • Makes changes to SHTC to better align with workforce housing


  
 HOA Limitations Bill  SF1750 Amends the common interest communities statute – limits ability to charge interest, imposes caps on late fees and fines, imposes notice requirements, addresses conflicts of interest, removes the ability of an association to enforce a lien against the owner for unpaid fines, prohibits retaliation. Most sections are effective Jan 1, 2027. Repassed Senate floor 56-9 and sent to the Governor’s desk on 5/11/26.  Passed House floor 4/30/26 with 100-34 votes.