Minnesota House passes bipartisan funding to prevent potential homelessness crisis manufactured by Trump Administration

St. Paul, MN - Today, the Minnesota House of Representatives passed one of its first bills of the 2026 Legislative Session, House File 3425. The legislation, authored by State Representative Michael Howard (DFL - Richfield), addresses a crisis caused by the Trump administration that threatens to increase homelessness across the state. The bill directs $9 million to Minnesota’s supportive housing providers who stand to lose millions in federal dollars due to misguided and legally-challenged cuts by the U.S. Department of Housing and Urban Development.

“This funding is vital for the supportive housing providers throughout our state, who serve as the backbone in our efforts to prevent homelessness in Minnesota,” said Rep. Howard, the House’s DFL Chair of the Housing Committee. “This is just the latest example of the federal government abandoning Minnesotans out in the cold, leaving us to step up to provide triage to an emergency. This bill helps keep the doors open for housing providers and in turn aims to prevent a manufactured homelessness crisis caused by President Trump.”

Supportive housing providers in Minnesota have for decades led efforts in our state’s homelessness response system, assisting individuals, youth, and families experiencing homelessness with access to both stable housing and services they need to stabilize and thrive.

Last year, the Trump administration halted funds to previously approved HUD projects, including a drastic cut to Continuum of Care permanent supportive housing. This left 3,000 supportive housing units throughout Minnesota in limbo, unsure if and when they would receive funds. An infusion of $9 million will help supportive housing providers stay open in 2026. The potential permanent funding loss for supportive housing providers could be more than $50 million per year, underscoring the need for permanent funding solutions at the federal and state level.

The legislation passed on a vote of 103-31. A nonpartisan research brief on the bill can be found here. Video of today’s floor debate can be found on the House Public Information YouTube Channel. 

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