The package also includes funding for food security, child care regulatory modernization, and more.
St. Paul, Minn. – On Thursday, April 16, the Senate Health and Human Services (HHS) Committee led by Chair Melissa H. Wiklund (DFL – Bloomington) passed its omnibus supplemental budget bill, including critical funding to keep Hennepin Healthcare (HCMC) open.
Hennepin Healthcare and Provider Stabilization
The Senate HHS budget includes nearly $300 million to stabilize HCMC and healthcare providers statewide: $150M for HCMC, $114.8 million for a general hospital stabilization program, $17.6 million for community-based safety net providers, $15 million for the rural EMS uncompensated care pool payment program. All funding includes accountability and reporting requirements.
“Hennepin Healthcare is a critical safety net hospital that serves Minnesotans across the state, offers important specialized care, and trains many of the State’s physicians,” said Senator Wiklund. “We cannot afford for its doors to close. The hospital was already facing financial challenges due to growing uncompensated care costs, and now President Trump’s HR1 is kicking more people off of health coverage and pushing hospitals and other care providers beyond their breaking points. We must act now to stabilize Hennepin Healthcare and our entire health care system from collapse.”
While this funding is one time money, other long-term proposals are being considered at the legislature this year and the hospital stabilization program could be turned into an ongoing funding mechanism.
Modernizing County Human Services IT
This bill takes on long-overdue upgrades to Minnesota’s outdated human services IT systems at a time when counties are being asked to do more as the federal government shifts responsibilities to local governments and cuts funding. This proposal creates a state-county steering committee to guide major IT decisions, ensuring counties have a real voice in how these systems will be built and updated, with public input and legislative oversight.
It also invests $70 million over the next four years for MNIT to distribute to counties that submit project proposals to the department.
“At a time when counties will be serving more Minnesotans with fewer federal resources, this proposal ensures they have improved, reliable technology to get people the help they need quickly and efficiently. We must prioritize smart fixes now and establish our commitment to longer-term modernization, to replace failing systems, eliminate outdated technology, and improve tools that support programs like food assistance, disability services, and health care.
Food Security
The bill includes $10.5 million to combat rising food insecurity, including $5 million to regional food banks, $2.7 million in support for local food shelf programs, and continued funding for the new Prepared Meals Food Relief program established last session, focused on Minnesotans experiencing food insecurity who have difficulty preparing meals due to limited mobility, disability, or resource limitations.
“Minnesotans are turning to food support organizations in record numbers, as the cost of food skyrockets, and federal cuts strain our support networks,” said Senator Wiklund. “Our HHS bill proposals a variety of strategies to help meet the needs of Minnesotans and address the crisis of food insecurity in our state.
Funding is also included to alleviate new financial burdens on counties administering the federal SNAP program. Changes in the federal HR1 bill are pushing costs onto counties for administrative functions and taking a more punitive approach that will force counties, for the first time ever, to shoulder costs for SNAP benefits. “We are funding a significant amount of costs required to maintain SNAP benefits to prevent additional strain on the emergency food system,” said Senator Wiklund. “This state funding will also help counties avoid having to choose between property tax increases to cover benefits or leaving Minnesotans without enough to put food on their table.”
Child Care Regulatory Modernization
SF4612 includes recommendations from the Child Care Regulation Modernization Project that is the result of over 5 years of work and collaboration between the Department of Human Services, the Department of Children, Youth, and Families, and providers across the state.
“This child care regulatory modernization effort is a long time coming. It has been decades since many of these policies were last updated. This bill will simplify and streamline standards for providers, improve transparency for families, and reduce unnecessary burdens that can make it harder for child care providers to operate while keeping children safe.”
SF4612 also includes updates and county support for the Minnesota African American Family Preservation and Child Welfare Disproportionality Act, and one-time funding for service animals in honor of Speaker Emerita Melissa Hortman and Mark Hortman.
The bill was passed on a bipartisan vote and was re-referred to the Senate Finance Committee.
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