Holmstrom slams $40 million Democrat rental aid bill as taxpayer-funded bailout amid Minnesota’s affordability crisis

Minnesota Senate Democrats yesterday passed a $40 million rental assistance bill that would use taxpayer money to cover individuals’ overdue rent and utility payments.

Senator Michael Holmstrom (R–Buffalo) strongly opposed the bill.

“The “Rent for Riots” bill is a $40 million pilfering of taxpayer money,” said Sen. Holmstrom. “Affordability is a real issue in Minnesota right now because Democrats spent the $17 billion surplus, grew government spending by 40%, and increased the tax burden by another $10 billion. Nothing has gotten more unaffordable for Minnesota families than the cost of running government.”

Senate Republicans forced anti-fraud guardrails into the bill amidst the state’s ongoing fraud crisis. Democrats voted down measures that would restrict eligibility to legal U.S. residents only and prohibit payments to sex offenders on the predatory offender registry.

“Democrats encouraged Minnesotans to skip work and go on a rental strike, and now they want to steal taxpayer dollars to cover the bill,” said Sen. Holmstrom.

The bill, Senate File 3596, redirects approximately $40 million from the $109 million "Tyler settlement" fund established in 2024. This fund resulted from the U.S. Supreme Court's unanimous 9-0 ruling in Tyler v. Hennepin County (2023), which found that Hennepin County violated the Fifth Amendment’s Takings Clause by seizing and selling Geraldine Tyler's condominium to cover $15,000 in unpaid taxes, then keeping the full $40,000 sale proceeds, including the $25,000 surplus equity, without compensating her for the excess value.

The bill passed off the Senate floor on a 35-32 vote. It’s unclear whether there is a path to passage in the House.