Senate approves $9M repurposing to backfill supportive-housing funding after amendment votes

ST. PAUL — The Minnesota Senate on March 26 approved House File 3425, a bill the chief author described as a time-limited effort to make $9 million available to support statewide supportive-housing providers facing cuts to federal Continuum of Care funding.

Sen. Port, the bill's floor sponsor, told the chamber that the measure would "allow these pre-vetted providers to receive grants that temporarily backfill these federal cuts" to prevent Minnesotans at risk of homelessness from losing housing. She characterized the bill as a short-term, bipartisan response while work continues on a long-term funding solution.

Floor action included two amendment efforts. Sen. Duckworth offered an A4 amendment to redirect funds toward property-tax relief and renters and homestead credit refunds; the amendment was met with a point of order on germaneness and was ruled not germane to HF 3425. Sen. Holmstrom offered an A1 amendment to increase reporting frequency from every 90 days to every 30 days; proponents argued the change would improve oversight, while the bill's author and county representatives said the federal program already requires 90-day reports and the extra burden would hamper local implementation. On a recorded roll call, the A1 amendment was defeated, 32 yeas to 35 nays.

Debate reflected competing priorities. Critics framed the bill as a one-time "band-aid" that repurposes money rather than addressing root causes of high housing costs; some senators urged using excess state funds for broader property-tax relief. Supporters, including Sen. Boldon and Sen. Kunesh, emphasized the bill's immediate effect on vulnerable groups — veterans, youth, Native Americans and people with disabilities — and offered personal accounts of how supportive housing transformed lives.

Some senators raised oversight and fiscal-management questions. Sen. Draheim and Sen. Pratt noted that the agency had earned interest on appropriated funds; speakers cited figures in debate (one senator said the agency earned $57 million on appropriated funds, another referenced $153 million) as part of a larger argument about how the state manages and moves surplus funds.

Final passage: The Senate recorded 39 yeas and 28 nays; the bill passed and its title was agreed to.

What happens next: With Senate passage, House File 3425 moves forward in the legislative process for enrollment and any subsequent steps required before funds are distributed. Sponsors said the bill aims to get money out quickly to supportive-housing providers while longer-term solutions are pursued.

Sources: Floor debate, amendment offers and roll calls on House File 3425, Minnesota Senate, March 26, 2026.