The Minnesota House of Representatives passed House File 3, the omnibus human services budget bill, late May 28 after members suspended the rules to allow expedited consideration. The bill passed on a roll call of 96 yeas and 37 nays.

House File 3 combines new investments — including funding tied to a SEIU contract and a $20 million construction appropriation for a 50‑bed facility referenced as the Miller Building — with roughly $1.1 billion in targeted reductions over the next two bienniums, lawmakers said. Sponsors described the measure as the product of a bipartisan, bicameral working group and framed it as a compromise to address a structural budget shortfall.

Supporters said the bill balances program integrity reforms and investments in workforce and treatment capacity against difficult spending reductions. Dissenting members said the cuts fall disproportionately on people with disabilities and other vulnerable Minnesotans.

Representative Nisga'a moved to suspend the rules under the Constitution of the State of Minnesota so House File 3 could receive second and third readings and a final passage vote the same day; that motion prevailed by voice vote. Representative Noor, the bill author on the floor, described the measure as the bipartisan outcome of the working group and summarized both the new spending and the reductions.

Noor told colleagues that the bill fully funds wage and related components of the SEIU PCA/CFSS contract, creates a retirement fund trust for those workers and includes training and orientation grants. The bill also increases reimbursement rates for substance-use disorder services, in part by referencing Medicare rates: low‑intensity residential treatment at 100% of Medicare rates, high‑intensity residential treatment at 83% of Medicare rates, and other rate adjustments that the sponsor said include a 3% inflation factor in some places.

Lawmakers also approved $20 million for construction of a 50‑bed unit at the Miller Building, and funding for operations tied to that facility. The bill includes appropriations for several program areas and agencies, including the Department of Human Services, the Council on Disability, an ombudsman for mental health and developmental disabilities, the Wilder Foundation for a point‑in‑time homeless census and a provision referenced as the Damon Levstead Memorial Act to reimburse PCA services in acute-care hospital settings.

On the savings side, co‑chair Representative Schumacher and others said the bill targets a forecasted shortfall by focusing on spending reductions and program‑integrity measures rather than shifting costs to counties or creating new wait lists. Key changes include: capping inflationary growth for disability waiver services and nursing home reimbursements at 4% for budgeting purposes; instituting a long‑term services and supports cost‑savings work group with a target to find $88 million in savings in fiscal years 2028–29 (with contingent automatic reductions if the work group does not identify the savings); capping daily service hours for certain integrated home supports at six hours; and creating documentation requirements and narrower criteria for rate exceptions in disability waiver rate systems.

The bill also changes billing for certain substance‑use disorder providers from one‑hour increments to 15‑minute units, establishes a program‑integrity surcharge on DHS providers to fund compliance work, authorizes the commissioner to review change‑of‑ownership transactions within 12 months, and allows the commissioner to impose moratoria on several unlicensed programs with consultation from legislative leaders. Sponsors said those program‑integrity steps are intended to reduce improper payments and billing fraud in the recovery industry and other provider networks.

Several members warned about the effect of the bill’s operating cap, which will take effect Jan. 1, 2026, and which supporters said will limit growth in provider operating payments. Representative Gilman and others said the cap could affect providers who made 2024 investments in staff and services and highlighted potential impacts on nursing homes and assisted‑living capacity as Minnesota’s elderly population grows.

Representative Current (floor member who spoke in opposition) called the process harrowing and said House File 3 places disproportionate burden on Minnesotans with disabilities. “These are people who rely on us, full stop,” Current said on the floor, urging colleagues to consider the human consequences of reductions. Several speakers expressed gratitude for the bipartisan working group while also acknowledging the cuts were painful.

The roll call on final passage closed with the clerk announcing 96 ayes and 37 nays; a remote roll call entry recorded Representative Olsen voting no.

The bill’s adoption on the House floor completes one chamber’s action; sponsors warned that federal developments and forthcoming reconciliation actions in Congress could further affect Medicaid and state budgets.

Votes at a glance: Suspension of rules and urgency motion — voice vote, motion prevailed; Final passage — roll call 96 yeas, 37 nays, bill passed and title agreed to.

Provisions and next steps cited by sponsors include implementation work by agencies, the creation of the long‑term services work group with explicit savings targets, and continued negotiations during the interim as legislators and stakeholders monitor capacity for nursing home and disability services.