This bill, Minnesota Senate File No. 2124, proposes appropriations for addressing homelessness and expanding provider capacity in the state. The main provisions include:

1. Emergency Services Grants (Sec. 1) – Allocates funding from the general fund in fiscal years 2026 and 2027 to the Minnesota Department of Human Services (DHS) for emergency services under Minnesota Statutes section 256K.49. Any unspent funds from the first year will carry over to the second.

2. County Shelter and Homelessness Response Innovation Grants (Sec. 2) – Provides further appropriations to DHS for county-level grants aimed at identifying and addressing gaps in homelessness services. These grants will support efforts such as:

   • Low-barrier shelter operations
   • Expanding family shelters
   • Increasing shelter operating hours to 24/7
   • Housing-focused case management for homeless individuals
     

Funding priority will be given to applications with letters of support from Tribal Nations or indigenous organizations. Grantees must track outcomes and demonstrate effectiveness, and they must also participate in a capacity-building collaborative.

1. Provider Capacity Building (Sec. 3) – Appropriates funding to increase access to sustainable funding streams for providers and counties. These collaboratives aim to:
   • Expand Medicaid-eligible services
   • Assist in adopting best practices
   • Develop toolkits to help providers secure stable funding, including through housing support, Medicaid waivers, WIC, and adult mental health grants.

Overall, the bill seeks to enhance homelessness response efforts through strategic funding for emergency and innovative programs while strengthening provider capacity through better access to sustainable financial resources.