Veterans conferees sign off on $50 million funding increase, policy changes

A veterans homes funding bump, enlistment and retention bonuses, and honoring people who fought alongside United States military members are all part of a bill that could get legislative approval on a day to honor those who now serve or have served in the military.

The omnibus veterans and military affairs conference committee strongly approved an agreement Friday. Once filed, the conference committee report on HF2444/SF1959* will go to the Senate for a vote, then, if passed, sent to the House for action maybe even on Saturday which is Armed Forces Day.

“We did a good job of balancing needs,” said Sen. Aric Putnam (DFL-St. Cloud), who sponsors the bill with Rep. Matt Bliss (R-Pennington).

General Fund spending in the 2026-27 biennium would be $365.23 million, a $50.5 million increase over base per the global target agreement. Budget targets set by House leaders had a $5 million increase; the Senate target was $40.96 million more.

[MORE: View agreement and change-only spreadsheets; policy agreement]

With a larger target, the agreement takes the Senate position of a $39.17 million operating adjustment for veterans homes — the House position was $11.64 million — and does not reallocate $10 million in reducing homelessness programs for other purposes.

“The funding of our veterans homes will allow the three new homes in Bemidji, Montevideo and Preston to bring on staff so we can continue increasing our census and reducing the waitlist of veterans seeking to live in our homes,” said Veterans Affairs Commissioner Brad Lindsay.

Three governor’s military affairs recommendations that neither body previously included are in the agreement: $8 million to maintain enlistment and retention bonuses, $750,000 to sustain the agency’s current Cyber Coordination Cell program that provides “sustained support for Cyber operations readiness within the Minnesota National Guard,” and $242,000 in fiscal year 2026 to sustain a Holistic Health and Fitness program for the Army National Guard.

[MORE: Spending gap largest hurdle in reconciling House, Senate versions of veteran’s bill]

Policy

The agreement would honor sacrifices made by elders of Minnesota’s Hmong community, who fought on behalf of the United States during the Secret War, a period of covert U.S. military intervention in Laos, primarily during the Vietnam War.

Veteran status would be granted under state law to certain people who served with secret guerilla units or other irregular forces in Laos: naturalized under the federal Hmong Veterans’ Naturalization Act of 2000 or whom the Department of Veterans Affairs has determined served honorably with a special guerrilla unit or other irregular forces from a base in Laos in support of the United States between Feb. 28, 1961 and May 14, 1975 and is now a U.S. citizen or permanent resident. A task force would develop eligibility requirements for “Veteran of the Secret War in Laos” status.

An adopted amendment would require an eligibility certificate be provided to show a veteran’s status and update task force membership.

Sen. Bruce Anderson (R-Buffalo), who voted against the agreement, unsuccessfully offered amendments to remove this provision and another to include all who helped the United States in the Vietnam War.

“Individuals in our caucus and others have come forward to say that exclusively giving benefits to the SGU, the Hmong, excludes people who have served alongside our allied veterans in not only Vietnam, Southeast Asia, but alongside us from the Revolutionary War, with the French, along with those who served in Afghanistan and Iraq,” he said.

Bliss pledged to work with Anderson “to get the rest of the recognition out there.”

Other policy in the agreement includes:

• increasing the maximum bonded indebtedness allowed for the State Armory Building Commission from $15 million to $45 million;
• adding 5% to a service member base pay as a pension offset if the member is activated for state active duty;
• require placement of a memorial plaque in the Court of Honor to recognize the service and sacrifices of Minnesota’s Gold Star and Blue Star families; and
• allowing surviving spouses of service members who die because of their military service to remain eligible to use the service member’s education benefits even if the surviving spouse remarries.