HCMC funding passes in omnibus health and human services finance, policy bill

Key funding to keep open Hennepin County Medical Center, Minnesota’s flagship trauma center and safety net hospital, emerged within the final hours of the 2026 session.

The House voted late Sunday to adopt the conference committee report on HF4466/SF4612* then passed the omnibus health and human services finance and policy bill 108-26. Passed shortly thereafter 35-32 by the Senate, the bill now heads to the governor.

Funding for HCMC is part of a nearly $660 million agreement between House and Senate leaders and Gov. Tim Walz.  

[MORE: Walz, legislative leaders strike budget deal including HCMC rescue, $1.2 billion infrastructure package]

The bill would allocate $205 million in direct stabilization funding for HCMC and create a reserve account of up to $500 million that HCMC, and possibly other hospitals contending with financial burden due to uncompensated care, can draw from until 2031.

[MORE: View the spreadsheet]

In addition to the hospital funding, legislators added language about oversight of Hennepin Healthcare.

Hennepin County commissioners now serve as its leader after dissolving the corporate board last year. The bill would establish a new board that consists of between 11 and 15 directors and includes 70% of members with the professional training and expertise needed to govern a health system and safety net hospital.

With multiple new inclusions to the bill, most notably the funding relief for HCMC, House sponsor Rep. Robert Bierman (DFL-Apple Valley) said it was improved in conference committee. Sen. Melissa Wiklund (DFL-Bloomington) is the Senate sponsor.

But some in the other body noted those inclusions did not happen in public or in front of the majority of legislators. No conference committee was called and the report created outside the public eye was posted at 8 p.m.

Sen. Jim Abeler (R-Anoka) said even he hadn’t had time to read the 300-plus page report before legislators were asked to act on it. “I don’t know how the public has any idea what’s in here.” 

Far more than the HCMC provisions are in the final report.

[MORE: GOPers on House children and families panel balk at omnibus bills in final scheduled meeting]

It revives bills that were stalled in the House Children and Families Finance and Policy Committee, including legislation for long-awaited childcare licensing modernization and allocating additional funding to counties to implement the Minnesota African American Family Preservation and Child Welfare Disproportionality Act.

The base bill that started in the House health committee focused on conforming with Medicaid cuts, changes and restrictions included in HR1, known as the “One Big Beautiful Bill.”  

[MORE: House lawmakers OK bill to bring Minnesota into compliance with 'One Big Beautiful Bill']

The final product would codify federal changes in state law that include:

• implementing new federally mandated work requirements for adults without children using Medicaid;
• establishing new six-month renewal requirements;
• establishing cost sharing requirements across departments; and
• shortening retroactive coverage for adults without children from three months to one month.

Rep. Jeff Backer (R-Browns Valley) said the state risks losing $3.5 billion to $4 billion a year without the changes.