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SF 4775

Department of Human Services and Department of Children, Youth, and Families forecast adjustments

2025-2026 Regular Session Introduced by Melissa Wiklund

The bill adjusts DHS and DCYF funding for 2026–27, boosting medical, housing, MinnesotaCare, and Northstar funding while reducing MFIP-related General Fund and TANF funding.

Comm report: To pass and re-referred to Finance
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Bill Summary · SF 4775

Summary of SF 4775 (2025-2026) – Department of Human Services and Department of Children, Youth, and Families Forecast Adjustments

Purpose and intent

SF 4775 proposes forecast adjustments to the biennial appropriations for Minnesota’s Department of Human Services (DHS) and Department of Children, Youth, and Families (DCYF). The bill adds to or subtracts from existing appropriations in Laws 2025 (First Special Session) chapters 3 and 9 (article 20 and article 12, respectively) and specifies how the adjustments are allocated for fiscal years ending June 30, 2026 and June 30, 2027. The intent is to align funding with updated program forecasts for specified DHS and DCYF programs.

Key provisions and changes

Article 1 – Department of Human Services (DHS)

  • Establishes forecast adjustments to DHS appropriations from the General Fund and the Health Care Access Fund, applicable to the 2026 and 2027 fiscal years.
  • The bill presents two main sections:
    • Section 1: Direction that the listed appropriation amounts shown in the bill are additions to or subtractions from the existing appropriations in the referenced laws, effective for 2026 and 2027.
    • Section 2: Detailed forecasted program adjustments with totals by fund.
  • Total appropriations (DHS)
    • General Fund: 2026: $652,953,000; 2027: $615,407,000
    • Health Care Access Fund: 2026: $86,681,000; 2027: $159,628,000
    • Total Department-wide Appropriations (both funds combined): 2026: $739,634,000; 2027: $775,035,000
  • Forecasted programs and targeted adjustments (examples)
    • General Assistance: 2026: +$7,909,000; 2027: +$9,653,000
    • Minnesota Supplemental Aid: 2026: +$2,976,000; 2027: +$3,233,000
    • Housing Support: 2026: +$29,593,000; 2027: +$44,727,000
    • MinnesotaCare (a program funded through Health Care Access Fund): 2026: +$86,681,000; 2027: +$159,628,000
    • Medical Assistance: 2026: +$589,777,000; 2027: +$525,140,000
    • Behavioral Health Fund: 2026: +$22,698,000; 2027: +$32,654,000
  • Effective date: The article becomes effective the day after final enactment.

Article 2 – Department of Children, Youth, and Families (DCYF)

  • Establishes forecast adjustments to DCYF appropriations from the General Fund and other named funds, aligned to the same 2026 and 2027 fiscal years.
  • Totals and funding by fund (DCYF)
    • General Fund: 2026: $(22,395,000); 2027: $(10,320,000)
    • Federal TANF: 2026: $(22,766,000); 2027: $(26,131,000)
    • Overall total for DCYF (as presented): 2026: $(45,161,000); 2027: $(36,451,000)
  • Forecasted programs (with targeted adjustments)
    • MFIP/DWP (Minnesota Family Investment Program / Diverging Work Program): General Fund reductions of $(7,245,000) in 2026 and $(3,125,000) in 2027; Federal TANF reductions of $(22,766,000) in 2026 and $(26,131,000) in 2027
    • MFIP Child Care Assistance: Reductions of $(26,220,000) in 2026 and $(18,822,000) in 2027
    • Northstar Care for Children: Increases of $11,070,000 in 2026 and $11,627,000 in 2027
  • Effective date: The article becomes effective the day following final enactment.

Who is affected

  • DHS programs and funding streams, including Medical Assistance, MinnesotaCare, Housing Support, General Assistance, Minnesota Supplemental Aid, and Behavioral Health funding.
  • DCYF programs and funding streams, notably MFIP/DWP, MFIP Child Care Assistance, and Northstar Care for Children.
  • Funding changes impact both state General Fund and federal funds (e.g., TANF) as applicable.

Procedural and timeline notes

  • The bill contains a straightforward forecast adjustment mechanism: add to or subtract from existing appropriations for 2026 and 2027, as specified.
  • Effective date is the day after final enactment, with assumed implementation for the 2026-2027 fiscal years.
  • Status: Introduced and referred to committees with a subsequent finance-type consideration (as of the latest action history).

Overall impact

  • Net effect across DHS and DCYF is mixed: DHS shows net increases in several major programs (e.g., Medical Assistance, MinnesotaCare, Housing Support), while DCYF shows net reductions in General Fund and certain TANF-related appropriations alongside targeted increases (notably in Northstar Care for Children).
  • The bill aims to align budget authority with updated program forecasts for the two departments for the 2026 and 2027 fiscal years.

Compiled from official sources — confirm details with the bill’s official record.

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