The Minnesota Interagency Council on Homelessness supports the Governor and Lieutenant Governor as they develop budget and policy proposals across the 14 Council agencies and the Metropolitan Council that support housing stability. In the past few legislative session the governor and state legislature have made significant investments in the continuum of housing needs from preventing and ending homelessness, to expanding the rental market for low-income renters, to closing the disparities in homeownership. Learn more about the investments from the recent sessions below.
The Minnesota State Legislature completed the work to pass a two-year biennial budget during a special session on June 9, 2025. The session dynamics this year included a $456 million budget surplus for the FY 2026-27 budget, but a projected shortfall of $6 billion in FY 2028-29. The DFL and GOP split control of the House, 67-67, for only the second time in the state’s history, while the Senate DFL held a one-seat majority, 34-33.
Despite a challenging state budget outlook, state lawmakers and Governor Walz not only struck a budget compromise that takes substantial steps in managing Minnesota’s finances responsibly: they also protected, and in some areas increased, investments in housing stability. Funding was sustained for critical areas including veteran homelessness, local homeless prevention aid and housing resources for the Department of Corrections. Additionally, there are increases to programs supporting efforts to prevent and end homelessness across a handful of Minnesota Interagency Council on Homelessness (MICH) agencies. The summary below highlights the increased investments in housing stability from the 2025 state legislative session.
In 2024, the Governor signed an interagency budget for housing stability including $24 million dollars in onetime funding in fiscal year (FY) 25 and $13.3 million in FY 26-27. These investments build on the historic $2.6 billion in investments from the 2023 legislative session focused on the continuum of housing needs from preventing and ending homelessness, to creating a healthy rental market for low-income renters, to closing the disparities in homeownership. At the State Capitol, the second year of the biennium typically focuses on policy initiatives, a capital investment bill and supplemental budget initiatives. The session landscape this year included a $3.7 billion budget surplus for the FY 24-25 budget.
In 2023, the Governor signed an interagency budget for housing stability that is biggest investment in housing and homelessness in state history. At over $2.6 billion dollars through four years, it has transformative impacts on the continuum of housing needs from preventing and ending homelessness, to creating a healthy rental market for low-income renters, to closing the disparities in homeownership. The investments focus on increasing the amount and affordability of housing and shelter, as well as making sure housing is accessible to everyone. It is focused on preventing homelessness whenever possible and providing the kinds of services and supports people need to find and keep their housing.