Dear Neighbor,
The House is about to head into the home stretch of the 2026 session and there is good news to report from the floor this week on a key anti-fraud bill. Here are the latest notes from the Capitol:
House passes OIG bill
Republicans made good on a top priority of this session on Thursday as the House passed a bill creating an Office of the Inspector General bill that will operate independently and have future law enforcement authority to help clamp down on Minnesota’s rampant fraud. The bill makes the OIG responsible for investigating state agencies, grant recipients, and contractors. It also would have subpoena power and the authority to freeze or stop distribution of funds under court order.
From the beginning, House Republicans have been clear that this office must be truly independent, not just more lip service to Minnesota’s fraud problem without the authority to do the real work. The provisions we fought for are critical to protecting Minnesota taxpayers. It has been a long road in getting this bill through the House, but this is a good sign of progress for the taxpayers of our state that have suffered billions of dollars in fraud losses. The bill is now in the hands of the Senate, and I encourage them to pass it quickly so it can be sent to the governor for enactment.
Big change at DHS
DHS commissioner Shireen Gandhi was demoted this week, one day before she was scheduled to appear in front of the Senate to be confirmed. That makes the second time in less than a year the governor has removed a top state official from their post the day before they were set to face tough questions over the DHS’s failed response to fraud.
Gandhi worked in DHS since 2017 and spent the past 15 months as a governor-appointed Commissioner, despite her being in the department for years as fraud was taking place. As Minnesota’s fraud issue has gained more attention, questions about her performance have been raised. Because of her dismissal, Minnesotans may not receive answers they deserve.
Tax relief needed
Tax relief remains a top priority that needs to be resolved before the legislature adjourns May 17. House Republicans have unveiled a “North Star Comeback” package of bills that, together, would provide nearly $4 billion in tax relief. The plan includes $1 billion in one-time property tax relief, eliminates taxes on tips and overtime, and reduces car tab fees. It also lowers childcare costs and provides hundreds of millions of dollars for education at no cost to taxpayers through scholarship-granting organizations.
Many of these proposals have bipartisan support already and can pass this year. We are ready to get to work and get this done to provide Minnesota families and businesses with the relief they need after the former trifecta raised taxes by $10 billion and heaped unfunded mandates on local governments and school districts. Those moves created one of the worst tax climates in the U.S. that’s led to record-high tax migration.
We need to get our state back on track and I will keep working to reduce taxes and put money back in people’s pockets. The days are running short on this session, but there’s plenty of time left to get important work done if we put politics aside and focus on helping Minnesotans.
Stay tuned to see what unfolds. For now, good luck to everyone in our area who plans to get out on the water for this weekend's fishing opener!
Sincerely,
Lisa