Read weekly legislative updates from MCD’s public policy team on disability-related issues at the Minnesota State Capitol.
Questions? Email Joel Runnels or call 651-350-8642.
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Week 2 (February 23-27)
This week, the Minnesota Council on Disability’s public policy team tracked key policy and budget discussions at the Capitol and in related public forums. Much of the conversation focused on federal changes that could affect Medicaid (Medical Assistance in Minnesota), disability services and the state budget.
Here are selected highlights from the week:
Tuesday, February 24
The Senate Health and Human Services Committee, chaired by Sen. Melissa Wiklund, held an informational hearing. Committee members heard updates from the Minnesota Department of Human Services and discussed federal changes tied to H.R. 1, the One Big Beautiful Bill Act. The committee did not vote on any bills, but lawmakers are expected to continue reviewing these issues in the weeks ahead.
Wednesday, February 25
HF 3131 was heard in the House Transportation Finance and Policy Committee. Legislative Affairs Director Joel Runnels submitted a letter and testified on behalf of MCD against a proposed amendment that would have created a separate cancer-specific disability parking category. MCD supported keeping disability parking eligibility based on mobility limitations rather than diagnosis. The amendment was removed, and the bill passed out of committee as amended. It now moves to the full House for consideration.
At a University of St. Thomas seminar, Disability Rights on Hold, Sumukha Terakanambi, MCD’s public policy consultant, spoke about recent fraud investigations and their impact on disability services. He emphasized that fraud prevention efforts must protect people who rely on services and avoid unnecessary disruptions. Sumukha also shared that message with the media.
Thursday, February 26
MCD joined a This Is Medicaid coalition briefing for legislators and a press conference about how H.R. 1 could affect Medicaid in Minnesota. The event focused on what those changes could mean for people who rely on coverage and services.
Friday, February 27
Minnesota Management and Budget released the February budget forecast, projecting a $3.7 billion balance for the 2026-27 biennium. Lawmakers will use that forecast in the coming weeks to decide how much they can spend and which budget priorities to move forward.
Also This Week
The federal administration announced that it is deferring $259.5 million in Medicaid funds from Minnesota. A deferral is when the federal government withholds a portion of funding that has been set aside for a state. Officials said the action is tied to alleged fraud and oversight concerns. They gave the state 60 days to submit a corrective action plan. State leaders are reviewing the action and considering next steps.
MCD will keep the community updated as we learn more.
Week 1 (February 17–20)
Senate Health and Human Services Committee Hearing on Federal Budget Impacts
On February 19, members of MCD’s public policy team and MCD Council members attended a Senate Health and Human Services Committee hearing. The hearing focused on how recent federal actions may affect Minnesota’s budget and human services systems.
Lawmakers reviewed the projected consequences of H.R. 1 (the “One Big Beautiful Bill Act”), signed into law in July 2025. The federal law includes substantial reductions to Medicaid (Medical Assistance in Minnesota) and SNAP funding, along with new administrative requirements that states must implement in the coming years.
Testimony highlighted concerns about:
- State budget gaps that could push more costs to counties that run disability and waiver services
- More paperwork and reporting for counties because of new eligibility rules and compliance requirements
- The risk that the federal government could delay or hold back some funding tied to certain disability services
- The loss of some public health grants that support local programs and services
- More unpaid care at hospitals, which can increase financial pressure on health systems
- Strain on the home care workforce tied to recent immigration enforcement activity
When Medicaid funding is uncertain, or when payments to providers are delayed, workforce shortages can get worse. That can interrupt services for people with disabilities.
Throughout the hearing, testifiers urged lawmakers to:
- Prevent interruptions in care
- Keep funding steady for essential services
- Upgrade state and county computer and data systems
- Avoid shifting costs to counties in ways that could limit access to services
As federal policy shifts create new uncertainty, MCD will continue tracking committee work and budget decisions. We will keep advocating for uninterrupted care, workforce stability, and the rights of Minnesotans with disabilities.
Week 0 (January 26-30)
Senate and House Human Services Committees Hold Joint Hearing on DHS Prepayment Reviews and Continuity of Care
In late 2025, the Minnesota Department of Human Services (DHS) began a prepayment review process for certain Medicaid services DHS identifies as high risk. Under this process, some claims are reviewed before DHS issues payment.
As the process rolled out, Minnesotans with disabilities, service providers, and advocates raised concerns about payment delays and payment holds, which occur when payments are paused or withheld. Many warned that these delays could worsen staffing challenges, strain providers’ finances, and increase the risk of provider closures. They also raised concerns that these impacts could lead to service disruptions for people with disabilities.
On January 28–29, 2026, the Senate and House Human Services Committees held a joint hearing, convened by Senator John Hoffman, to examine these concerns and DHS’s actions. Lawmakers discussed how to prevent fraud while also protecting continuity of care — meaning people can continue receiving services without gaps or sudden interruptions.
On the first day, lawmakers questioned DHS leadership about how the prepayment review process is working in practice. Committee members raised concerns shared by providers and people with disabilities, including payment delays, unclear timelines, and communication challenges. DHS officials described steps they are taking to improve communication with providers, make payments more predictable, and coordinate with counties and case managers when payments are withheld.
On the second day, lawmakers heard directly from providers, direct care workers, and people with disabilities. Providers and workers emphasized that they support fraud prevention, but need clear communication, predictable timelines, and fair processes to challenge decisions. Many stressed that avoiding gaps in services must remain a top priority.
People with disabilities who testified shared that service suspensions would directly affect their dignity, independence, and quality of life. They urged lawmakers and DHS officials to address fraud in ways that protect people who rely on services from disruptions and ensure supports remain in place.
MCD will continue to advocate for fraud prevention approaches that protect people with disabilities and reduce service disruptions. We will share updates on this issue throughout the 2026 legislative session. Stay tuned!
Past Sessions
Looking for updates from past sessions? Visit the Legislative Sessions Archives.