House passes bill limiting campaign spending by entities receiving state funds, targets "dark money" loophole

The Minnesota House passed House File 72 on Feb. 26, a measure the sponsor described as closing a ‘‘dark money loophole’’ by restricting certain campaign expenditures by entities that receive state funding and increasing transparency about outside spending in elections.

Representative Cedric Engin, the bill’s author, told the chamber that nonprofits and other entities that receive state appropriations should not use funds to make political expenditures. ‘‘This is a dark money loophole,’’ Representative Engin said on the floor. He framed the bill as a step toward returning political influence ‘‘back to the Minnesota voters’’ by preventing organizations that benefit from public funds from spending in elections.

Engin offered a floor amendment (coded A25008) that he said preserves the bill’s intent while clarifying transparency around funds on hand and separating raised money from state funding receipts. Representative Freiburg, speaking in support, described the bill as ‘‘a creative way to use existing resources’’ and said she would vote yes. Representative Greenman introduced and later withdrew multiple clarifying amendments; two other clarifying amendments were adopted or clarified the bill’s scope to include non-profit and corporate beneficiaries and to define state funding to include direct appropriations and certain tax expenditures, per floor debate.

Representative Zachary Coulter, while expressing sympathy with the bill’s aims, raised concerns about remaining vague terms and missing definitions but supported the general direction. Representative Engin and supporters pointed to examples of large tax expenditures and subsidies to corporations and nonprofit organizations as the sort of public dollars they intend to place outside of campaign spending.

The clerk announced the final tally after recorded votes: 130 yeas and 3 nays; the bill passed as amended and its title was agreed to.

Votes at a glance House File 72 (as amended) - Motion: Third reading and final passage of House File 72, as amended (including clarifying amendments adopted on the floor). - Mover/Proponent: Representative Cedric Engin (bill author). Floor amendments offered by Engin and Greenman (some withdrawn; A25008 adopted). - Final vote: 130 yeas, 3 nays. Remote recorded yes votes included Gander and Hicks; final remote tallies read by the clerk. - Outcome: Approved; title agreed to.

What the bill and discussion covered Representative Engin described the bill as designed to prevent entities that receive public funds—whether direct appropriations, grants, or certain tax expenditures—from directing those funds toward campaign-related expenditures and to increase disclosure about independent spending. Debate on the floor focused on definitions (‘‘organization,’’ ‘‘entity,’’ and ‘‘state funding’’) and on whether federal restrictions already limit some nonprofit political spending. Supporters said the bill will improve transparency and reduce the influence of undisclosed outside spending; some members said additional drafting work in committee was still needed to clarify scope.

Implementation and next steps Floor debate did not provide an implementation timetable or detailed enforcement provisions; supporters said the bill clarifies state law and would require agencies and regulators to track disallowed campaign spending by benefited entities.

Speakers and attribution Quotes in this article are attributed only to persons identified on the House floor in the transcript and listed in the speakers section below.