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That’s a Wrap: End of 2025 Legislative Session Recap

For the 2025 legislative session, MCH focused on a two-part strategy: a core Legislative Agenda shaped by what we heard in community listening sessions, and an Endorse Agenda supporting a broader range of aligned proposals. This approach was shaped by the state’s limited budget, uncertainty around federal funding, and the recent success of the Pathway Home Act in 2023. It allowed MCH to champion a range of critical legislative efforts aimed at ending homelessness.

This recap offers a broad overview of the session. While we’ve worked to capture the key moments and outcomes, we apologize if anything was missed.

In addition to advocating for new policies and funding, MCH prioritized “Protect and Sustain Housing and Homelessness Programs” on our Legislative Agenda. We’re proud to report that there were no cuts to the programs we tracked—an important win. While flat funding may not sound exciting, given the fiscal climate, avoiding cuts was a real and meaningful success. Everyone working to end homelessness should take pride in this accomplishment.

Health & Human Services Committee

MCH Main Legislative Agenda: Passed 

  • Housing Services eligible for the Tribal Encounter Rate – The MN Tribal Collaborative to Prevent and End Homelessness (MTC) identified this as a top solution and MCH supported the efforts at the Capitol. While this did not require legislation to make happen, DHS had not made the request to the Centers for Medicare and Medicaid Services (CMS) since first brought to their attention in 2022. The impact of adding housing services as an eligible activity under the Tribal Encounter Rate is too important to wait for DHS. This is why MTC and MCH decided to write legislation forcing DHS to send the request to CMS.

MCH Main Legislative Agenda: Did NOT pass 

  • Capital funding for emergency shelters and Transitional Housing – MCH carried a stand alone bill for shelter capital and Lutheran Social Service carried a separate bill for transitional housing capital (THP). MCH knew going into the 2025 legislative session that with limited funds in the State Budget that these had a low chance of passing. Going into the year, the decision was made to still have these as priorities to continue the education of the needs to lawmakers. Shelter Capital did get a hearing but not its own bill number (was amended to the Homeless Youth Act funding) and THP was able to get a bill number but ultimately did not pass.

MCH Main Legislative Agenda: Did NOT pass 

  • Humane Encampment Clearing – The goal of this proposal was to identify minimum standards in order to clear out encampments in a humane and dignified manner. Due to the lack of clear jurisdiction (on a statewide perspective) this proposal became very complicated. MCH made great progress in getting the language turned into legislation but ultimately, it did not leave the Revisor’s Office.

Not on MCH Legislative Agenda: Passed

  • MN Homeless Study – Received $1.2M in one-time funding for Wilder to continue doing the study. Without this funding, Wilder may not have been able to continue doing the study. 

Not on MCH Legislative Agenda: Passed

  • Homeless Youth Act Funding – Received a $500K increase for the 2026/27 biennium and will turn into an ongoing increase of $5.768M per biennium starting in 2028/29.

Not on MCH Legislative Agenda: Passed

  • Safe Harbor Funding – Received ongoing funding in the amount of $1.862M per biennium. This was very important as Safe Harbor did not receive ongoing funding increases when the Pathway Home Act passed in 2023.

Not on MCH Legislative Agenda: Passed 

  • Decoupling Housing Support’s Room & Board rate from changes to SNAP and SSI. Previously, state statute pointed to federal programs SNAP & SSI when determining rates for the state funded Housing Support program. With unknown impacts to these federally funded programs, we were able to change state statute so that the program’s Room & Board rates would only be impacted if either of those federal programs increase. 

Housing Committee

MCH Main Legislative Agenda: Passed 

  • Family Homelessness Prevention and Assistance Program (FHPAP) received $8.35M in one-time funding AND a $900K ongoing increase to the base budget. This is remarkable, even though it falls drastically short of the need. FHPAP has been on MCH’s legislative agenda for many years. As a refresher, it also received $103M in one-time funding during the 2023/24 legislative sessions. The Housing Committee was given a budget target of $15M in one time funding, and chose to appropriate over half of it to FHPAP. 

Not on MCH Legislative Agenda: Passed

Capital Investment Committee

Not on MCH Legislative Agenda: Passed 

  • Public Housing Rehabilitation received one-time funding of $26M

Not on MCH Legislative Agenda: Passed

  • Greater MN Housing Infrastructure Coop Manufactured Housing received one-time funding of $3M

Not on MCH Legislative Agenda: Passed

  • Local Public Housing Program created and received one-time funding of $2.44M. 

Taxes Committee

Not on MCH Legislative Agenda: Passed

  • In 2021 the legislature passed the Local Homeless Prevention Aid and the Statewide Affordable Housing Aid. During the final weeks/days of the legislative session, there was a Senate proposal to drastically reduce the funding for both of these aids. However, thanks to a very strong response from the community (almost 400 people participated in an action alert), these reductions were removed from the final tax omnibus bill.

Thank you for your continued advocacy throughout the legislative session. Your efforts helped drive meaningful progress at the Capitol—momentum that will shape positive change for years to come. Stay tuned for upcoming updates and more opportunities to get involved.

– Team MCH