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Minnesota anti-fraud legislation 2026

Minnesota Capitol Building

Ewald at the Capitol: End of Session

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END OF SESSION

The legislature finished up the 2026 session Sunday night, passing bills right up to the midnight deadline. Several omnibus bills cleared both chambers in rapid succession, with the inclusion of some high-profile provisions like funding for Hennepin County Medical Center (HCMC), property tax relief, and a $1.2 billion capital investment package.

Despite the agreements reached, the overall process drew some bipartisan frustration, with members criticizing the closed-door negotiations by leadership that shaped the final deal. Calls for greater transparency are likely to carry over into the next biennium, even as leadership defended the session’s approach and pointed to efforts to pass more single-subject bills.

Going into this session, it was anticipated that little would get done due to the near-even partisan split in the legislature. This dynamic was often challenging, but leadership from both parties described it as an impetus for bipartisan collaboration. Despite a year of tension and tragedy in the state, legislators still found a way to overcome deep divisions and work together in what ended up being a productive session.

Although the work finished Sunday night, the session didn’t officially adjourn until Monday, May 18. The final day saw retirement speeches from 42 legislators who are not seeking reelection to their current office. The 2027 legislative session begins January 12, 2027.
 

RETIREMENTS

A record number of legislators are retiring this year. A total of 43 members, 20% of the legislature, have announced their retirement or plans to run for another office.

Some retirees have served in the legislature for decades. Sen. Warren Limmer (R, Maple Grove), the longest-serving Republican, announced he will retire after 38 years in office. Senators Ann Rest (DFL, New Hope) and Sandy Pappas (DFL, St. Paul) are also retiring after more than 40 years. They all leave behind a stellar record of public service and dedication to the people of Minnesota. Their wisdom and leadership will be sorely missed at the Capitol.

Retirements

·      Sen. Ann Rest (DFL, Dist 43) – 42 years

·      Sen. Sandy Pappas (DFL, Dist 65) – 41 years

·      Sen. Warren Limmer (R, Dist 37) – 38 years

·      Sen. Carla Nelson (R, Dist 24) – 18 years

·      Sen. Steve Drazkowski (R, Dist 20) – 18 years

·      Rep. Paul Torkelson (R, Dist 15B) – 18 years

·      Sen. Jim Carlson (DFL, Dist 52) – 17 years

·      Sen. Gary Dahms (R, Dist 15) – 16 years

·      Rep. Chris Swedzinski (R, Dist 15A) – 16 years

·      Rep. Tim O’Driscoll (R, Dist 13B) – 16 years

·      Sen. Jeremy Miller (R, Dist 26) – 16 years

·      Rep. Joe Schomacker (R, Dist 21A) – 16 years

·      Sen. Bill Weber (R, 21) – Dist 14 years

·      Sen. Jeff Howe (R, 13) – Dist 14 years

·      Rep. Ron Kresha (R, Dist 10A) – 14 years

·      Sen. Melissa Wiklund (DFL, Dist 51) – 14 years

·      Sen. Rich Draheim (R, Dist 22) – 10 years

·      Sen. Steve Cwodzinski (DFL, Dist 49) – 10 years

·      Rep. Erin Koegel (DFL, Dist 39A) – 10 years

·      Rep. Kristin Robbins (R, Dist 37A) – 8 years

·      Sen. Tou Xiong (DFL, Dist 44) – 8 years

·      Rep. Kelly Moller (DFL, Dist 40A) – 8 years

·      Rep. Paul Novotny (R, Dist 30B) – 8 years

·      Rep. Sandra Feist (DFL, Dist 39B) – 6 years

·      Rep. Patti Anderson (R, Dist 33A) – 4 years

Running for Other Office

·      Rep. Lisa Demuth (R, Dist 13A) – Governor

·      Rep. Peggy Bennett (R, Dist 23A) – Governor

·      Rep. Kaela Berg (DFL, Dist 55B) – CD2

·      Sen. Matt Klein (DFL, Dist 50) – CD2

·      Sen. Eric Pratt (R, Dist 54) – CD2

·      Rep. Heather Keeler (DFL, Dist 4A) – CD7

·      Rep. Tom Dippel (R, Dist 41B) – Senate

·      Rep. Ben Bakeberg (R, Dist 54B) – Senate

·      Rep. Mike Freiberg (DFL, Dist 43B) – Senate

·      Rep. Steve Jacob (R, Dist 20B) – Senate

·      Rep. Bernie Perryman (R, Dist 14A) – Senate

·      Rep. Liz Reyer (DFL, Dist 52A) – Senate

·      Rep. Mike Wiener (R, Dist 5B) – Senate

·      Rep. Dan Wolgamott (DFL, Dist 14B) – State Auditor

·      Rep. Elliott Engen (R, Dist 36A) – State Auditor

·      Rep. Cedrick Frazier (DFL, Dist 43A) – Hennepin County Attorney

·      Rep. Maria Isa Perez-Vega (DFL, Dist 65B) – Ramsey County Commissioner, District 5
 

ELECTION YEAR

Now that the legislative session is over, everyone is shifting into campaign mode. Candidate filing opened on Tuesday this week. With statewide offices and all 201 legislative seats on the ballot this November, this election cycle will be incredibly consequential for the future of the state. With the House tied 67-67 and the Democrats holding a one seat majority in the Senate, even a single seat could shift control — which means that a relatively small number of races will determine the direction of state policy for the next biennium.

Democrats will run on issues that stalled out at the legislature this year, like a ban on semiautomatic firearms and restrictions to federal immigration enforcement in response to Operation Metro Surge. Affordability and health care will also be high-profile talking points.

Republicans will run on accomplishments that passed this year due to their shared control of the House, such as creation of the Office of the Inspector General, the reduction in vehicle tab fees, and a broader focus on fraud prevention.

Some Races to Watch:

  • Metro Suburbs: Several races decided by 1–2 points in 2024 remain top targets for both parties.

  • Winona (House District 26A): A southeastern district that flipped from Democratic to Republican last cycle.

  • Iron Range:

    • House District 7B: Flipped from Democratic to Republican last cycle.

    • Senate District 3: Currently held by Democrats, but was decided by only a few hundred votes in 2024.

  • South-central (House District 18A): A closely divided district in the Mankato area.

  • Senate battlegrounds: Rochester, Blaine, Chaska, Stillwater and Maple Grove.
 

APRIL REVENUE UPDATE

The April 2026 Monthly Revenue Review shows that Minnesota collected more tax revenue than expected during the month of April. Net general fund revenues totaled about $4.27 billion, which was $230 million (or 5.7%) higher than state officials had forecasted. The stronger-than-expected revenue was mainly driven by higher collections from individual income taxes, sales taxes, and other miscellaneous revenues. They emphasized that the numbers are preliminary and may change as more data become available.

Officials said the improved outlook was partly due to stronger-than-expected revenues, though they warned there is still uncertainty because of inflation, economic conditions, and possible federal policy changes.
 
Minnesota Capitol Building

Ewald at the Capitol: Anti-Fraud Bill Passes House

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ANTI-FRAUD BILL PASSES HOUSE

After months of negotiations, the House has passed its version of the independent Office of the Inspector General (OIG) bill. SF 856, authored by Reps. Patti Anderson (R, Dellwood) and Matt Norris (DFL, Blaine) and the most high-profile proposal to address fraud in state programs this session, passed 127-5 on May 7.

The legislation would create a new independent office within Minnesota’s executive branch to strengthen oversight, transparency, and fraud prevention across state government programs. The office would have authority to investigate fraud, evaluate agency performance, and issue public reports — with a particular focus on public assistance programs such as WIC and food support.

SF 856 also establishes an Anti-Fraud and Waste Bureau within the OIG with statewide investigative and law enforcement authority. The Inspector General would be appointed by the governor from recommendations made by a legislative advisory commission and could only be removed for cause following a public hearing.

The proposal requires state agencies and nonprofit organizations to make fraud reporting tools more visible online and outlines procedures for referring credible fraud allegations to state officials and the legislative auditor. The bill would take effect Jan. 1, 2027, or upon federal approval.
 

WALZ STATE OF THE STATE ADDRESS

In his final State of the State address, Gov. Tim Walz reflected on his nearly eight years in office. He discussed major events that shaped his time as governor, including the COVID-19 pandemic, social unrest in 2020, and ongoing political divisions. He also acknowledged recent tragedies — including the loss of Speaker Melissa Hortman and her husband, and the shooting of Sen. John Hoffman and his wife. He stressed Minnesota’s resilience and the importance of communities coming together during difficult times.

The governor highlighted legislation passed during his time in office, particularly investments made in the areas of education, children, families and economic development, arguing these policies have helped move the state forward despite recent crises. He also addressed criticism over fraud in state programs, defending his administration’s response while expressing support for stronger oversight and accountability measures.

Walz outlined several priorities he hopes lawmakers will address before his term ends. These include expanding financial support for families through measures like the child tax credit, exploring new policies related to emerging technologies such as artificial intelligence, and continuing economic support for communities facing uncertainty.
 

SENATE PASSES FIREARMS BILL

Less than a year after the Annunciation Catholic Church Shooting, the Senate has passed a sweeping gun bill. It would restrict ghost firearms without serial numbers and binary triggers in addition to outlawing assault weapons and high-capacity magazines. It would also promote school safety programs and mental health services. On the floor on Monday, Republicans introduced an amendment that would have eliminated the proposed gun bans while keeping funding for school safety and mental health programs, but the amendment was not adopted. The bill passed along party lines, 34-33. The bill faces an uncertain path; the House, where the chamber is tied, is divided on gun policy.
 

DHS COMMISSIONER SHAKEUP

This week, Gov. Walz announced that Minnesota Department of Human Services (DHS) Commissioner Shireen Gandhi would no longer hold that post. The governor appointed John Connolly as acting commissioner.

Questions surrounding this leadership shakeup at DHS intensified this week after the newly-appointed temporary commissioner disclosed he will be on medical leave for the next month while undergoing treatment for colon cancer.

Gov. Walz appointed Connolly on Monday, replacing Gandhi just before her scheduled Senate confirmation hearing. Gandhi was reassigned to a deputy commissioner role focused on Medicaid oversight and fraud prevention. During Connolly’s absence, DHS said Gandhi and Deputy Commissioner Andrew Johnson will manage day-to-day agency operations.

The transition comes as DHS faces mounting scrutiny over fraud in public assistance programs, and federal Medicaid funding freezes. In an internal memo, Connolly said his priority is maintaining continuity and strengthening oversight of Medicaid programs while he undergoes treatment.

Republicans criticized the timing of the move, arguing it allowed the administration to avoid public accountability over DHS’s handling of fraud investigations. The Walz administration defended Gandhi’s continued role, saying she has played a key part in efforts to strengthen oversight and combat fraud within the agency. Senate Democrats also said they will continue pressing DHS leadership for answers regarding fraud prevention and misuse of public funds.
 

PERMANENT SCHOOL FUND

The Minnesota Permanent School Fund is a constitutionally established endowment, funded largely by revenue from school trust lands. Approximately 2.5 million acres were granted to the state at statehood to support public education. As stipulated in the state constitution, the fund’s earnings are distributed annually to school districts and charter schools on a per-pupil basis, while the trust lands themselves generate ongoing revenue through timber sales, mineral leases, and other uses managed by the state.

This week, the House and Senate passed bipartisan legislation (SF3593/HF3900) to place a constitutional amendment on the November 2026 ballot to change the distribution formula, which ultimately could mean increased payments to schools from the state’s Permanent School Fund. The House bill passed unanimously with no amendments, but it had a different path in the Senate. There, it was amended to require that any future statutory changes to the distribution formula be approved by a two-thirds vote in both bodies, then was passed 59-8. Because the House and Senate versions now differ, the two chambers will need to reconcile the bills before final passage.
 

OMNIBUS BILL PROGRESS

  • SF 476  Human Services Policy: Passed Senate

  • SF 2511 Liquor Omnibus: Signed by Governor

  • SF 3295 Health and Human Services Policy: Passed House/Senate

  • SF 4223 Senate Elections: Passed Senate

  • HF 4240 House Elections: Passed House

  • HF 4252 Higher Education: Passed House

  • HF 4188 Commerce: Passed House/Senate

    • Conference Committee: Koegel, Elkins, O’Driscoll, Perryman (Senate conferees still need to be named)

  • HF 1141 Housing: Passed House/Senate

  • SF 4807 Veterans: Passed House/Senate

  • SF 4760 Public Safety: Passed House/Senate

    • Conference Committee: Latz, Oumou Verbeten, Limmer, Novotny, Witte, Moller, Feist

  • SF 4561 Agriculture Policy: Passed Senate

  • SF 4555 State and Local Government: Passed Senate

  • SF 4067 Firearms: Passed Senate

  • SF 4059 Supplemental Finance: Passed Senate

    • Environment

    • Higher Ed

    • Jobs and Economic Development

    • Education Finance

  • SF 3432 Safety and Security Measures: Passed House/Senate

    • Conference Committee needed

  • SF 3298 Health Professional Scope and Licensing: Passed Senate

  • SF 2373 Labor: Passed Senate
 

IMPORTANT DATES

May 9: Minnesota Fishing Opener

May 18: Adjournment of Legislative Session
 

HELPFUL LINKS TO FOLLOW ACTION AT THE STATE CAPITOL
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