Purpose

Provide a one-time emergency rental assistance program funded from the general fund to help Minnesota counties and federally recognized Tribal governments support households facing housing instability due to financial hardship after August 31, 2025. The bill sets up how funds are calculated, distributed, used, and reported, and it directs how unused funds are handled.

Key definitions and terms

• Emergency rental assistance: direct financial help for rent and related costs, including up to two months of prospective rent, up to two months of rent arrears, up to two months of prospective utility costs, utility arrears, or fines/fees related to nonpayment.
• Eligible household: a household with a primary residence in Minnesota that (1) has a rent obligation, (2) has income at or below 200% of federal poverty guidelines, (3) experienced financial hardship after August 31, 2025 (e.g., income loss or unemployment), and (4) is at risk of housing instability or homelessness (e.g., risk of lease termination or eviction).
• Household: all individuals who occupy a single dwelling unit as their primary residence.
• Median rent: the most recent Census Bureau estimate of median gross rent; for tribal lands, the average of the latest Census estimates for the counties where the reservation or trust land is located.
• Tribal government: the 11 federally recognized American Indian tribes in Minnesota.
• Not income: the aid provided is not considered income, assets, or personal property for purposes of many state public assistance programs.
• Data privacy: data on applicants/households are private data, with limited dissemination to verify eligibility.

Distribution and administration

• The commissioner of revenue determines how much emergency rental assistance each county and each tribal government will receive.
• Counties use a distribution formula based on population and the same factors used to certify 2026 aids under a specified statute; tribal governments receive an equal share of the tribal portion.
• Eligible households may be served by the same agencies that administer related homeless prevention programs.

Use of funds and limits

• Funds must be used only to provide emergency rental assistance to eligible households.
• Eligible households with at least one minor must be prioritized.
• Each eligible household can receive up to five times the county’s median rent (or the tribal land equivalent) for their primary residence.
• Funds must be spent by the last day of the fourth month after the section’s effective date; any unspent amount must be reported and returned to the commissioner within three months of that deadline.

Administrative details and disbursement

• The commissioner will prescribe how to notify and return unspent funds.
• The bill requires payment to counties and tribal governments within 15 days after the section’s effective date and sets the maximum per-household amount.
• No portion of the general-fund appropriation may be retained for administrative costs related to this section.

Data privacy and eligibility screening

• Data collected under this program is private but may be shared to verify eligibility.

Not income for public programs

• Emergency rental assistance distributed under this section must not be treated as income or assets for purposes of other state programs (e.g., childcare, food assistance, welfare programs, medical assistance, housing support, MinnesotaCare, etc.).

Appropriation and reporting

• Subsection 7: A one-time appropriation of $40,000,000 from the general fund for emergency rental assistance.
  • $35,200,000 to counties.
  • $4,800,000 to tribal governments.
• Subsection 8: Data reporting requirements.
  • Counties and tribal governments must report, within four months of the spending deadline, on the total households served, demographics, income, presence of minors, and the range of amounts distributed.
  • The commissioner must compile a statewide report within five months and share it with the legislative auditor and relevant committees.

Timeline and implementation notes

• The section uses an effective date tied to when the emergency rental assistance begins.
• The program is a one-time initiative; funds are not intended to be ongoing annually.

Significant changes to existing law - Creates a new, onetime emergency rental assistance program funded by a $40 million general fund appropriation. - Directs distribution to counties and tribal governments with specific minimum and maximum spending rules. - Introduces prioritized distribution for households with minors and caps on aid per household. - Establishes strict deadlines for spending and for returning unspent funds. - Adds explicit data privacy protections and clarifies that assistance is not counted as income for many state public aid programs. - Requires detailed reporting to the legislature and auditor.

Relevant terms - emergency rental assistance - eligible household - rent arrears - rent obligations - prospective rent - utility costs - utility arrears - median rent - county distribution formula - tribal government - federally recognized American Indian reservation - offreservation trust land - not income (for public programs) - data privacy - onetime appropriation - miscellaneous administrative restrictions - reporting to legislative bodies

Relevant Terms

• emergency rental assistance
• eligible household
• rent obligations
• rent arrears
• utility costs
• utility arrears
• median rent
• tribal government
• American Indian reservation
• offreservation trust land
• not income
• data privacy
• onetime appropriation
• counties
• spending deadline
• unspent funds
• reporting requirements