SF 3596
2nd Engrossment - 94th Legislature (2025 - 2026)
Posted on 03/04/2026 05:10 p.m.
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A bill for an act
relating to taxation; aids to local governments; establishing a onetime emergency
rental assistance aid for counties and Tribal governments; requiring the claims
administrator to return unused funds; canceling a prior appropriation; appropriating
money; requiring a report.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. new text begin APPROPRIATION; EMERGENCY RENTAL ASSISTANCE AID.
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new text begin Subdivision 1. new text end
new text begin Definitions. new text end
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(a) For purposes of this section, the following terms have
the meanings given.
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(b) "Commissioner" means the commissioner of revenue.
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(c) "Household" means all individuals who occupy a single detached dwelling unit or a
single unit of a multiple dwelling unit as their primary residence.
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(d) "Eligible household" means a household that:
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(1) has a rent obligation for the household's primary residence at an address in Minnesota;
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(2) has income at or below 200 percent of federal poverty guidelines;
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(3) experienced financial hardship after August 31, 2025, including but not limited to
loss of income or unemployment; and
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(4) is at risk of experiencing housing instability or homelessness, including but not
limited to risk of lease termination or eviction.
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(e) "Emergency rental assistance" means direct financial support for any or all of the
following rent obligations for an eligible household's primary residence:
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(1) up to two months of prospective rent;
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(2) rent arrears incurred after August 31, 2025;
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(3) up to two months of prospective utility costs;
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(4) utility arrears incurred after August 31, 2025; or
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(5) fines and fees related to nonpayment of rent or utilities.
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(f) "Median rent" means the most recent estimates of median gross rent made or conducted
by the United States Bureau of the Census that are available as of the effective date of this
section. For a federally recognized American Indian reservation or off-reservation trust land
that does not have an estimate of median gross rent available for any of the preceding three
years, median rent means the average of the most recent estimates of median gross rent
made or conducted by the United States Bureau of the Census that are available as of the
effective date of this section for the Minnesota counties in which the reservation or
off-reservation trust land are physically located.
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(g) "Tribal government" means any of the 11 federally recognized Indian Tribes located
wholly or partially in Minnesota.
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new text begin Subd. 2. new text end
new text begin Distribution. new text end
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(a) The commissioner must calculate the amount of emergency
rental assistance aid payable to each county and Tribal government under this section.
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(b) Each county shall receive an amount of aid calculated using the county distribution
formula under Minnesota Statutes, section 477A.30, subdivision 3; the population data and
distribution factors used to certify aids payable in 2026 under Minnesota Statutes, section
477A.30; and the appropriation amount provided in subdivision 7 for aid to counties.
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(c) Each Tribal government shall receive an equal share of the appropriation amount
provided in subdivision 7 for aid to Tribal governments.
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new text begin Subd. 3. new text end
new text begin Use of proceeds; administration. new text end
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(a) Counties and Tribal governments must
use aid received under this section for emergency rental assistance to eligible households.
Emergency rental assistance under this section may be administered by the same entities
allowed to administer family homeless prevention and assistance projects or programs under
Minnesota Statutes, section 477A.30, subdivision 4, paragraph (a).
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(b) Eligible households that include at least one minor must be prioritized in the
distribution of emergency rental assistance under this section.
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(c) Each eligible household may receive a total amount of emergency rental assistance
under this section no greater than five times the median rent for the county or federally
recognized American Indian reservation or off-reservation trust land where the household's
primary residence is located.
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(d) Counties and Tribal governments must spend aid received under this section by the
last day of the fourth month following the month of the effective date of this section. Counties
and Tribal governments must notify the commissioner of the amount of aid not spent by
the deadline imposed under this paragraph and return that amount to the commissioner
within three months of the spending deadline for cancellation to the general fund. The
commissioner shall prescribe the form and manner of the notification and the return of
unspent aid.
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new text begin Subd. 4. new text end
new text begin Data privacy. new text end
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Data on applicants or eligible households collected or created
pursuant to this section is private data on individuals, as defined in Minnesota Statutes,
section 13.02, subdivision 12, except the data may be disseminated to verify that an applicant
is an eligible household.
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new text begin Subd. 5. new text end
new text begin Emergency rental assistance not income. new text end
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Notwithstanding any other law to
the contrary to the extent permitted by federal law, emergency rental assistance distributed
to eligible households under this section must not be considered income, assets, or personal
property for purposes of determining or recertifying eligibility for state public assistance,
including but not limited to:
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(1) child care assistance programs under Minnesota Statutes, chapter 142E;
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(2) food support under Minnesota Statutes, chapter 142F;
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(3) the Minnesota family investment program and diversionary work program under
Minnesota Statutes, chapter 142G;
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(4) medical assistance under Minnesota Statutes, chapter 256B;
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(5) general assistance and Minnesota supplemental aid under Minnesota Statutes, chapter
256D;
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(6) housing support under Minnesota Statutes, chapter 256I;
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(7) MinnesotaCare under Minnesota Statutes, chapter 256L; and
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(8) economic assistance programs under Minnesota Statutes, chapter 256P.
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new text begin Subd. 6. new text end
new text begin Certification and payment. new text end
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No later than 15 days after the effective date of
this section, the commissioner must:
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(1) pay the emergency rental assistance aid calculated under subdivision 2 to each county
and Tribal government; and
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(2) certify the maximum amount of emergency rental assistance each eligible household
may receive in each county and federally recognized American Indian reservation and
off-reservation trust land under subdivision 3.
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new text begin Subd. 7. new text end
new text begin Appropriation. new text end
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(a) $40,000,000 in fiscal year 2026 is appropriated from the
general fund to the commissioner of revenue for emergency rental assistance aid under this
section. This is a onetime appropriation.
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(b) Of the amount appropriated in paragraph (a), $35,200,000 is for aid to counties and
$4,800,000 is for aid to Tribal governments.
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(c) Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the commissioner
may not retain any portion of the amount appropriated in paragraph (a) for administrative
costs of this section.
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new text begin Subd. 8. new text end
new text begin Report. new text end
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(a) Within three months of the spending deadline imposed under
subdivision 3, each county and Tribal government that receives aid under this section must
submit the following information to the commissioner in the form and manner prescribed
by the commissioner for each entity that administers emergency rental assistance on behalf
of the county or Tribal government:
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(1) the total number of households to which emergency rental assistance was distributed;
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(2) demographic characteristics of recipient households, including household size,
income, and how many include at least one minor;
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(3) the minimum, median, and maximum amounts of emergency rental assistance
distributed per recipient household; and
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(4) the number of households to which the maximum amount of emergency rental
assistance allowed under subdivision 3 was distributed.
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(b) Within five months of the spending deadline imposed under subdivision 3, the
commissioner must compile the information received from counties and Tribal governments
under paragraph (a) and submit the compilation in a report to the legislative auditor and to
the chairs and ranking minority members of the legislative committees with jurisdiction
over taxes and housing.
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new text begin EFFECTIVE DATE. new text end
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This section is effective the day following final enactment.
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Sec. 2. new text begin RETURN OF UNUSED TAX-FORFEITED SETTLEMENT
APPROPRIATION; CANCELLATION.
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new text begin Subdivision 1. new text end
new text begin Return of funds. new text end
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Notwithstanding Laws 2024, chapter 113, section 1,
subdivision 5, on June 29, 2026, the claims administrator appointed under Laws 2024,
chapter 113, to settle litigation related to the state's retention of tax-forfeited lands, surplus
proceeds from the sale of tax-forfeited lands, and mineral rights in those lands, must return
to the commissioner of management and budget the lesser of $40,000,000 or the amount of
the appropriation under Laws 2024, chapter 113, section 1, subdivision 5, that is not needed
to settle claims under Laws 2024, chapter 113.
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new text begin Subd. 2. new text end
new text begin Cancellation. new text end
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The commissioner of management and budget must cancel the
amount received under subdivision 1 to the general fund within one day of the receipt of
the funds.
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new text begin EFFECTIVE DATE. new text end
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This section is effective the day following final enactment.
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