Minnesota legislators passed a housing bill on May 13 that includes $40 million in emergency rental assistance, a partial answer to pleas that have been coming from Twin Cities metro area officials and others since the early December start of Operation Metro Surge.
The $165 million bill is now headed to the desk of Gov. Tim Walz. It also includes $100 million to build affordable housing, $14 million for housing meant to meet workforce needs in Greater Minnesota, $4 million to support manufactured homes and $4 million for a homelessness prevention strategy threatened by federal cuts.
State Rep. Liish Kozlowski (DFL-Duluth), who authored the rental assistance portion of the bill, said it has been “the most pressing issue facing Minnesotans” since the session began.
The funds will be distributed through the state’s Family Homeless Prevention and Assistance Program, which partners with counties, nonprofits and other organizations. To be eligible, participants must be Minnesota residents undergoing a housing crisis who have an income at or below 200% of federal poverty guidelines.
Related: Legislature passes housing bill amid feds’ threat to strategy to prevent homelessness
Kozlowski believes the “lion’s share” of the funding will go toward the Twin Cities metro, but that every county in the state will receive some portion. They added that they were hopeful that residents would receive the dollars by the time June rent comes due, but that money would definitely be available by July.
Kozlowski said the bill was “the thing I’m most proud of and also it gives me heartburn,” acknowledging that even a figure as large as $40 million pales in comparison to the estimated cost of meeting emergency assistance needs for the state’s low-income households, which Minnesota Housing pegs at $350 million.
The decision comes as eviction filing rates statewide continue to slightly outpace last year. As of May 1, 2026, nearly 8,500 households had received an eviction notice this year, up about 8% from the same time period in 2025.
Related: In Minneapolis, evictions are outpacing solutions
The money will come from a state fund originally created for counties to pay out settlements connected to a U.S. Supreme Court decision that found the state’s forfeiture law was unconstitutional.
Minneapolis City Council members, who have been calling on the state to add to funds approved by the city, as well as those raised privately through sites like Stand With Minnesota, said they were relieved to see it finally happen.
“My community, my colleagues and I on the Council, and people throughout the city and state have been telling lawmakers that emergency rental assistance is desperately needed in the wake of Operation Metro Surge,” said Council member Aisha Chughtai (Ward 10). “This is a win for working class people.”
Council member Jason Chavez agreed, saying that “this action is exactly what is needed to keep more neighbors housed.” He added, though, that many residents still need more time – a nod to the Council’s efforts to extend the eviction timeline, which have been met with vetos from Mayor Jacob Frey.
Frey’s spokesperson said the mayor was thankful that the state has invested in emergency rental assistance, a measure he has said he prefers to eviction period extensions.
St. Paul City Council President Rebecca Noecker (Ward 2) said the bill’s passage was “really exciting news,” saying the need for rental assistance is bottomless.
“We’ll be fighting for as much of that money as possible in St. Paul,” Noecker said. The announcement made her even more grateful, she said, that the Council passed an ordinance extending St. Paul’s eviction timeline to 60 days – which coincidentally went into effect on May 14 and will last through the end of 2026.
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