This bill proposes funding for emergency services, homelessness response, and provider capacity building in Minnesota during fiscal years 2026 and 2027. It includes three key appropriations:

1. Emergency Services Program – Allocates funds to the Commissioner of Human Services for emergency services grants aimed at supporting people experiencing homelessness. Any unspent funds from the first year will carry over to the second year.

2. County Shelter and Homelessness Response Innovation Grants – Provides funding for counties to address significant homelessness-related gaps, particularly for underserved interventions such as low-barrier shelter operations, family shelter diversion, 24/7 shelter operations, and housing-focused case management. Priority is given to applications with support from Tribal Nations or indigenous organizations. Grantees must track outcomes and participate in a capacity-building collaborative.

3. Capacity Building Appropriation – Funds collaborations between counties and service providers to improve access to sustainable funding sources (such as Medicaid and housing support programs) for expanding homelessness-related services. The initiative aims to distribute toolkits and promote best practices for securing stable funding.

These measures are designed to improve emergency support for homelessness, expand innovative shelter solutions, and increase financial sustainability for service providers.