Session Recap: Major Anti-Fraud Wins, Tax Relief, and More!

May 20, 2026

Major Anti-Fraud Wins, Tax Relief, and More!

Friends and neighbors,

The 2026 Legislative Session came to a close this weekend, and I am proud to report that Republicans were able to use our tie in the Minnesota House to secure many major victories for you, the taxpayer. As a member of the Fraud Prevention and State Agency Oversight Policy Committee, I am especially proud of the anti-fraud legislation that we were able to pass.

All of the bills below have passed the House and Senate and are now expected to be signed into law by the Governor:

Anti-Fraud Legislation

• Office of the Inspector General (OIG) Bill: Establishes a new and truly independent, apolitical state agency to investigate and prosecute fraud. This change is critical for restoring public trust that our taxpayer dollars are being safeguarded by a nonpartisan entity. This is the signature achievement of my time in the legislature, and I am proud to see it become law.
• Take It Back Act: Establishes a 100% tax on state money obtained through fraud, to be imposed on individuals and organizations that have been convicted of doing so. The tax will apply to convicted fraudsters in addition to any court-ordered restitution that they may already have to pay. It also allows the Minnesota Department of Revenue to swiftly seize assets of convicted fraudsters (homes, vehicles, etc.) so the state can retrieve as much stolen taxpayer money as possible. I am a chief author of this widely bipartisan bill.
• Work Requirements for Welfare Benefits: Implements expanded work requirements for able-bodied adults aged 18–64, without dependents under 14, who use Medicaid programs. These adults must work, volunteer, or participate in training for at least 80 hours per month (roughly 20 hours per week) to avoid a three-month time limit on benefits. Able-bodied adults who choose not to work should not be subsidized by those who do.
• Tech Modernization: Allocates over $25 million to state and local governments for the purpose of modernizing outdated human services software. New software will include artificial intelligence mechanisms to flag statistical anomalies that indicate potential fraud.

Over $400 Million in Tax Relief

• $250 Million in Car Tab Fee Reductions: Car tab fees were drastically increased by the DFL Trifecta in 2023. This year, House Republicans secured a one-time car tab fee reduction to help working families. We will continue to advocate for this one-year tax cut to be permanently extended.
• $125 Million in Property Tax Relief: Unfunded DFL mandates on cities, such as Paid Family and Medical Leave, have led to dramatic property tax increases. Minnesotans should not be priced out of their homes as the result of unaffordable legislation. Again, this property tax cut is only for one year, but we will continue to advocate for it to become permanent next year.
• Business Tax Improvements: Brings Minnesota into compliance with recent federal tax standards and extends the Pass-Through Entity tax provision, providing hundreds of millions in relief for Minnesota businesses at zero cost to the state government.
• Ending the Ballpark Tax: Minnesotans will no longer have to pay this sales tax, which used public dollars to fund a private business.

Strengthening the MN Healthcare System

• Hennepin County Medical Center Funding: Allocates $200 million from the general fund along with significant accountability and governance language to make sure HCMC is operating efficiently.
• Hospital Stabilization Fund: Establishes a new emergency fund to help hospitals across Minnesota that are in dire financial stress and facing insolvency.
• Uncompensated Care Fund: Helps hospitals to cover costs of care for cases in which no payment is received from the patient or insurer. With the rising cost of insurance, this has become a significant challenge for hospitals, and this measure is meant to provide budget relief.

Blocking Destructive Far-Left Legislation

In addition to these significant wins that we were able to achieve, House Republicans were also able to use our tie to block some truly destructive far-left legislation that would have become law without our efforts.

Far-left proposals that House Republicans blocked:

• Quintupling Your Car Tab Fees: This year, a DFL member suggested that she would like to "quintuple!" your car tab fees on top of their already heightened rates. We not only blocked this, but we also secured a reduction.
• Fifth Income Tax Bracket: There was a bill to create a fifth state income tax bracket for high earners at 10.85%, which would have led to increased outmigration by imposing the fourth-highest state income tax in the nation.
• Wealth Tax: There was an even more extreme bill to create a 1% annual wealth tax on all assets exceeding $10 million (businesses, investments, homes, land, vehicles, art, etc.). In effect, it would have allowed the state to gradually seize land and businesses from farmers and entrepreneurs who would have to liquidate assets to pay the tax. This would lead to an exodus of high-net-worth taxpayers, mass legal disputes over the proper valuation of unsold property, and bring business investment in Minnesota to a halt. It is also worth noting that the income tax started out as a tax on the rich, yet was swiftly expanded to impact us all. If the far-left had their way, the same would be true for the wealth tax.
• State Flag Blackmail: This was a bill to withhold state funds from cities and municipalities that refuse to fly the new and unpopular state flag. When will the overreach end?

All of the radical ideas above were either proposed or actually introduced as bills by far-left members of the House this year. Thanks to your engagement, House Republicans were able to block them from becoming law. At the end of the day, the vast majority of Minnesotans are not far-left or far-right. We just want to be left alone.

Thank You

On a personal note, I would also like to thank you for entrusting me with representing your voice at the State Capitol. It has been an honor to work on your behalf to restore accountability in our state government, and I am proud of what I have been able to accomplish for Minnesota taxpayers.

In a time of hyper-partisan tensions, the anti-fraud bills that I championed this year received near-unanimous support from both parties, and this is a positive legacy to retire with.

I look forward to seeing you in-district this summer!

Please Contact Me

Please continue to reach out if I can be of any assistance to you. You can reach me by phone at 651-296-3018 or by email at rep.patti.anderson@house.mn.gov.

Patti

/RepPattiAnderson

2nd Floor Centennial Office Building
658 Cedar Street
Saint Paul, MN 55155
ph: 651.296.3018