The majority’s Human Service budget, HF 2434, passed yesterday out of the Senate, where it failed to achieve strong bipartisan support. The legislation cuts more than $1 billion from long-term care and disability services over the next four years, and drew sharp criticism from Senate Republicans for its misplaced priorities, failure to crack down on fraud, and deep cuts to long-term care facilities and disability services.
This legislation includes more than $1 billion in reductions over the next four years that will hit long-term care facilities, disability services, and nursing homes across the state. At the same time, the Human Services policy bill, which also passed the Senate yesterday without strong bipartisan support, adds expensive and burdensome new mandates and regulations for long-term care providers.
“Considering the state of our nursing homes, this proposal is shocking – just a year ago we gave our nursing homes a one-time lifeline of $300 million with the promise we would address their funding concerns this year. Instead of delivering on that promise, Senate Democrats are passing a bill that makes staggering cuts,” said Sen. Eric Pratt (R-Prior Lake). “Of all the places to make cuts, our nursing homes should be last on the list. We have had continued fraud cases in our state costing taxpayers millions – we should shift our efforts to cutting fraud before reducing funding to those who need it most. This bill sends the message that Senate Democrats put agency spending and priorities above funding care centers for our loved ones.”
According to The Long Term Care Imperative, this year’s nursing home cuts will hit Scott County with devastating numbers totaling nearly $5 million over the next four years:
- Gertrude’s Health and Rehabilitation Center (Shakopee) – $1,943,250
- The Lutheran Home Belle Plaine (Belle Plaine) – $1,551,411
- Mala Strana Rehabilitation Center (New Prague) – $848,975
- Shakopee Friendship Manor (Shakopee) – $565,184
Notably, the original budget included a major property tax hike disguised as a budget solution, but a key Republican amendment eliminated all county cost shifts.
Despite making more than $700 million in net budget reductions, Senate Democrats opted to preserve taxpayer-funded health care for undocumented immigrants through MinnesotaCare. Since the program launched in January 2025, 17,396 undocumented individuals have enrolled in MinnesotaCare, nearly triple the original first-year estimate of 5,874. As a result, cost projections have risen to over $600 million over the next four years. The Minnesota Center for Fiscal Excellence is also warning that Minnesota is heading down the same path as states like Illinois and California, where expenses quickly spiraled out of control.
Senate Republicans offered two amendments to repeal this policy and redirect the funding toward seniors and disability services. Democrats refused to debate these amendments, using procedural rulings to block discussion.
Despite the poor state of the bill, Senate Republicans were able to successfully add multiple amendments:
- Helping to keep Minnesota’s nursing homes open in rural and underserved areas – redirects $50 million in unspent nursing home loan funds to support Critical Access Nursing Facilities, while retailing $25 million in the loan program
- Eliminating county cost shifts – better targets resources to those most in need by prioritizing those with the highest level of need, and finding efficiencies in licensing and assessment processes
- Holding DHS accountable to audit findings and prioritizing fraud prevention – requires DHS to report on how they implement fraud-related recommendations received from the Office of the Legislative Auditor
- Addressing fraud in DHS autism services – tightens eligibility for payments and regulates which entities can provide certain services
The legislation now moves to a conference committee, where House and Senate members will finalize the details.