House Human Services committee adopts A1 budget amendment, re-refers HF2995 to Ways and Means

The House Human Services Finance and Policy Committee adopted the governor—s A1 amendment to House File 2434 and laid the bill over as amended, and the committee re-referred House File 2995 to the Committee on Ways and Means during its meeting.

The A1 amendment updates the governor—s revised budget to reflect the February forecast and includes technical and policy adjustments covering disability waiver inflation, a reinstated Tax Equity and Fiscal Responsibility Act (TEFRA) buy-in option for certain families, and clarifications to housing stabilization and behavioral health service rates. Representative Knorr moved that House File 2995 be re-referred to Ways and Means; the motion was approved by voice vote.

Why it matters: both measures adjust how the state will pay for human services programs in fiscal year 2025 and change eligibility or rate-setting details that affect families receiving services, behavioral health providers and the department—s administration of federal demonstrations.

Elyse Bailey, budget director of the Department of Human Services, told the committee the amendment largely reprices earlier proposals "according to the February forecast" and incorporates technical fixes and some new components compared with the original governor—s submission. Bailey said the revised proposal increases the cap on annual inflationary adjustments within the disability waiver rate system from 1% to 2% per year, with adjustments made every two years (effectively a 4% cap per biennial adjustment).

The amendment also includes a new, targeted TEFRA proposal that would reinstate a buy-in option for families whose incomes are high relative to federal poverty guidelines. Under the proposal, TEFRA eligibility would be restricted to families at or above 675% of the federal poverty guideline and below higher tiers for higher fees; Bailey gave income examples used in the budget text: 675% of the guideline is about $217,000 for a family of four and $143,000 for a family of two. The proposal sets TEFRA family fees at roughly 4.5% of adjusted gross income for the lower tier and 5.99% for incomes up to 975% of the guideline, and states the fees cannot exceed the cost of services for the child with the highest expenditures.

On housing stabilization services, the amendment aligns state financial-eligibility language with federal requirements for the 1915 federal mechanism that permits those services, changing eligibility to the federal threshold of 150% of the federal poverty limit. Bailey said this codifies current program practice and resolves a discrepancy with Minnesota statute that had a higher income threshold for pregnant individuals (278% of the federal poverty guidelines).

The amendment also contains budget-neutral clarifications: it explicitly lists medication-assisted treatment (MAT) as part of the minimum benefit set for the 1115 reentry waiver (a federal demonstration allowing Medicaid coverage for some people exiting correctional facilities), and it reconciles substance-use-disorder rate changes so that certain residential treatment rates reflect the statute and a separate 3% increase that had been authorized.

Representative Noor, presiding as chair, urged members to vote on the referral of HF2995, calling it "a good bill. Please vote first." The committee re-referred House File 2995 to Ways and Means by voice vote. Committee members adopted the A1 amendment to House File 2434 by voice vote and laid the bill over for possible inclusion; committee staff indicated a DE amendment and spreadsheet would be published and that the committee plans additional consideration, including a DE on Thursday.

Votes at a glance: - House File 2995: Motion to re-refer to Committee on Ways and Means. Mover: Representative Knorr. Vote: voice vote recorded as "aye"; outcome: re-referred to Ways and Means. (Individual roll-call tallies not specified.) - House File 2434 (A1): A1 amendment adopted. Motion: adoption of the A1 amendment (mover not named in record). Vote: voice vote recorded as "aye"; outcome: A1 adopted and HF2434 laid over as amended for possible inclusion.

What happens next: House File 2995 will be considered by the Committee on Ways and Means. House File 2434 as amended will return for further committee consideration; staff said a DE amendment and supporting spreadsheet will be released and a DE hearing is planned for Thursday.