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Senate committee reviews contingency to pause evictions if Section 8 payments stop; $66.5M suggested
Summary
An informational presentation to the Senate Judiciary and Public Safety Committee examined an amendment that would trigger a three‑month eviction moratorium for Section 8 voucher holders if federal payments are withheld and would use roughly $66.5 million from FY26 housing funds as a temporary backstop.
The Senate Judiciary and Public Safety Committee on April 28 heard an informational outline of a proposed amendment that would pause eviction proceedings for tenants holding Section 8 Housing Choice Vouchers if the federal government withholds contracted payments. Senator Port presented the amendment and described an associated proposal to use approximately $66,500,000 from the fiscal 2026 housing appropriation as a short‑term backstop to keep landlords whole while the Legislature or federal agencies resolve payment disruptions.
Senator Port said Minnesota has roughly 32,600 Housing Choice Vouchers covering about 100,000 residents, and that a sudden halt to Section 8 payments—whether from system outages, staffing gaps or federal action—could create an immediate housing crisis. "I don't want a hundred thousand Minnesotans to not be able to pay their rent overnight should that happen," Senator Port said, urging a temporary measure to prevent rapid evictions and protect smaller landlords who depend on steady voucher payments.
The proposed amendment would: 1) create a three‑month eviction moratorium for voucher holders when HUD or a federal contractor withholds payments, and 2) authorize the state to use FY26 housing funds to cover approximately three months of vouchers while lawmakers seek a long‑term solution. Senator Port said the provision is intended as a short‑term, prophylactic backstop; the language would expire Nov. 1, 2025, to align with the next budget cycle and expected federal action.
Committee members raised legal and drafting questions. Senator Limmer asked whether a state can impose such a restriction on a program administered under federal contracts; counsel Miss Primo explained there are multiple contractual relationships (tenant‑landlord, tenant‑public housing authority, landlord‑public housing authority) and said the state‑level restriction on eviction timing could be litigated. Other members asked about the drafting phrase "effective upon enactment of a 2025 bill styled as Senate File 2298," and counsel said the phrasing was recommended by the reviser's office to refer to the housing omnibus finance bill where the funds would be drawn.
Senator Croon and others questioned the contingent funding approach and whether it was appropriate to tie state dollars to a hypothetical federal interruption; Senator Port and supporters said the proposal responds to recent federal staffing and access issues that temporarily halted reimbursements in other programs and is intended only as an emergency bridge.
The presentation was informational; the committee did not take a final vote on the amendment at this hearing. Committee counsel and members said they expect follow‑up discussion on legal authority, precise funding sources and the draft language before any motion is offered.
