ST. PAUL — Lawmakers debated deep cuts to Minnesota’s Human Services budget last week as the state stares down
Across the board, for human services. Gov. Tim Walz and the House align the most, proposing roughly $300 million in net cuts for fiscal year 2026-27 and $1.3 billion over four years, while the Senate is proposing $272 million in net cuts for 2026-27 and $702 million over four years.
ADVERTISEMENT
Human Services is expected to outgrow education costs by 2029 and become the state’s largest spending area, which is currently projected to cost in fiscal years 2026-27, according to Minnesota Management and Budget’s February forecast.
Rep. Mohamud Noor, DFL-Minneapolis, co-author of the bill alongside Rep. Joe Schomacker, R-Luverne, said on the floor Monday, May 5, this has been one of the “most difficult bills” he’s worked on. Schomacker said this is a bill that “not everyone is going to be happy with.”
“This bill has got impact on vulnerable individuals, our seniors, people with disability, folks with mental health, substance use disorder and more,” Noor said on the floor. “I know we could have done a better job in creating a better system, but when you are given a $1.3 billion cap, it is going to have an impact.”
The House’s bill, , which passed 109-25 on Monday, May 5, meets the House’s budget target of $300 million in net budget cuts for fiscal years 2026-27, with a total . Some of the proposed cuts over the next two years include $427 million for long-term care waivers, $155 million to county share for rate exceptions and $50 million to reduce disability waiver rate growth.
The Senate’s bill, , which passed 35-32 on Wednesday, meets the budget target of $272 million in net budget cuts for fiscal years 2026-27, with a . Some of the proposed cuts over the next two years include $155 million for disability waiver inflation adjustments, $47 million for nursing facility payment system changes and $35 million to reduce expected disability waiver expenditures.
Rep. Wayne Johnson, R-Cottage Grove, said he is concerned as a former county commissioner about how the cost of proposed cuts, specifically disability waiver cuts, will fall on counties.
“The county is being told to pay for this,” Johnson said on the floor last Monday. “I’m not going to continue the trend … and support more and more millions and millions, hundreds of millions of dollars going to the counties for them to try and figure out what services they are now going to have to cut.”
ADVERTISEMENT
In March, shortly after Walz announced his revised budget proposal, a few rural county commissioners and Senate Republicans held a press conference and said counties may have to .
Sen. Jim Abeler, R-Anoka, introduced a lengthy on the floor that includes several reforms aimed at giving counties relief.
“As you watch this drama unfold with this human services bill and the suggestion that we can just have counties pay for things, and it’s going to be well balanced and good for Minnesota … I’m not sure how many Minnesotans can tolerate anymore property tax increases put upon them in the name of good government,” he said on the floor Wednesday.
Nursing homes and Medicaid debates
Rep. Natalie Zeleznikar, R-Fredenberg Township, who later voted yes on the bill, spoke on the floor about concerns for nursing homes amid staffing struggles and proposed cuts. HF2434, as passed in the House, currently includes a $1.50 hourly raise beginning in 2027 for nursing home workers and an $18 million increase for nursing facility payment rates.
“Many of these counties have one remaining nursing home,” Zeleznikar said. “Without them, it doesn’t matter what services we can put in place at home. The reality is, when people need two, three or four people to lift them, you need to have economies of scale. You need to have a center to have them go, or what happens is they get transported to the emergency rooms.”
Toby Pearson, president and CEO of Care Providers of Minnesota, said in a statement Thursday that the Senate’s proposals fall short.
“Without an adequate budget target from legislative leaders and the governor, seniors will suffer,” he said. “This is about protecting the dignity and well-being of Minnesota’s older adults. The state has a moral and fiscal obligation to care for those who have put so much into shaping this state.”
ADVERTISEMENT
Lawmakers also spent time during floor debates discussing the potential for Medicaid cuts from the federal government — the largest portion of Minnesota’s federal funds for 2025, at $11.7 billion, according to Minnesota Management and Budget. If cuts are imposed, the Department of Human Services projects federal Medicaid cuts could cost Minnesota
Rep. Aisha Gomez, DFL-Minneapolis, introduced an amendment Monday that she later withdrew, which would raise income tax for Minnesotans who make $1 million or more, that would take effect if proposed federal Medicaid cuts are imposed.
“If you care about those nursing homes that you all just talked about, if you care about your hospitals, your rural hospitals, if you care about public health infrastructure, if you care about clinics … Medicaid funding is critical to the infrastructure of health care in every corner of our state,” she said.
The bills, / , will now head to conference committees where Walz and leaders in the Senate and House will hash out their differences in human services spending before a May 19 deadline.
The Trust Project
