This bill, Minnesota Senate File No. 2124, proposes appropriating state funds in fiscal years 2026 and 2027 to support efforts addressing homelessness through three key programs:

1. Emergency Services Grants – Funding is allocated to the Commissioner of Human Services for emergency services grants under Minnesota Statutes, section 256K.49. Any unspent funds in the first year will remain available in the second year.

2. County Shelter and Homelessness Response Innovation Grants – Grants will be provided to counties to address significant gaps in local responses to homelessness. The funding will support initiatives that:

   • Operate low-barrier shelters and family shelters.
   • Expand shelter availability to 24/7 operations.
   • Develop housing-focused case management programs.
   • Support innovative approaches that are not currently funded by other public sources.
   • Priority will be given to applications that include letters of support from a Tribal Nation or Indigenous organization.
   • Grantees must track and report their progress and participate in a capacity-building initiative.

3. Capacity Building Funding – Grants will support collaborative efforts between counties and service providers to improve access to sustainable funding for services. This includes:

   • Expanding funding for Medical Assistance-eligible services.
   • Facilitating best practice adoption.
   • Providing support tools to access funding streams like housing support programs, Medicaid waivers, WIC (Women, Infants, and Children program), and adult mental health grants.

This bill aims to strengthen provider capacity, expand services, and enhance homelessness response efforts across Minnesota.