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DHS presents $23.8 billion FY26 budget, says Medicaid enrollment remains above pre‑pandemic levels
Summary
Department of Human Services officials told the Health and Human Services Finance and Policy Committee on Jan. 23 that the agency has reorganized after a 2023 split, will oversee roughly $23.8 billion in FY26 and continues to serve about 1.25 million Minnesotans on Medicaid following the federal public health emergency unwinding.
The Minnesota Department of Human Services on Jan. 23 told the Health and Human Services Finance and Policy Committee the agency is operating with about $23.8 billion in all funds in fiscal year 2026 after a 2023 reorganization and continues to administer the bulk of state Medicaid programs.
DHS budget director Elise Bailey told the committee the reorganized agency — which she called “DHS 2.0” after lawmakers moved children-and-family and direct-care programs into separate departments — will have roughly $23.8 billion in all funds in FY26 and about 2,000 employees. “Our new identity is taking shape,” Bailey said, adding the agency’s revised mission emphasizes helping “people thrive rather than just meeting their basic needs.”
The department said federal funds remain the largest revenue source. Bailey reported roughly $12.6 billion in federal funding in the FY26 forecast, $9.4…
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