Funding for homeless emergency services grants could increase by $35 million

To address the increasing homeless population in the state, lawmakers could add additional funding to emergency services grants.

Sponsored by Rep. Liz Reyer (DFL-Eagan), HF3294 would appropriate an additional $35 million in fiscal year 2023 and set a base appropriation of $30 million in fiscal years 2024 and 2025 to fund emergency services for homeless people, such as emergency shelters.

The bill was approved by a 7-4 party-line vote Wednesday by the House Preventing Homelessness Division and referred to the House Human Services Finance and Policy Committee.

“This program is one of the backbones of our shelter system, ensuring that the physical shelter spaces we create have the resources they need to operate,” Reyer said.

The bill does have bipartisan support because its companion, SF3144, is sponsored by Sen. Paul Utke (R-Park Rapids). It awaits action by Senate Human Services Reform Finance and Policy Committee.

Rhonda Otteson, executive director of the Minnesota Coalition for the Homeless, said about 20,000 Minnesotans experience homelessness on any given night.

According to Zach Eichten, director of public policy for the coalition, the base budget for the emergency services grant program was $844,000 per year prior to the current biennium. The base budget was increased to just over $12 million for the biennium in fiscal years 2022 and 2023.

The $35 million in fiscal year 2023 would be added to the current base; the $30 million the following two fiscal years would establish a new base, according to a nonpartisan House fiscal analyst.