Legislators in Minnesota are debating deep cuts to the state’s human services budget, largely impacting nursing homes, to make up for a $6 billion budget deficit.
The state’s House and Senate have until May 19 to agree on final cuts.
The Senate’s version of the budget has $47 million in nursing home payment system changes, along with $155 million in cuts for disability waiver inflation adjustments, and $35 million to reduce disability waiver expenditures, according to a report from the Pine Journal.
House cuts include $427 million for long-term care waivers, $155 million to county share for rate exceptions, and $50 million to reduce disability waiver growth. The House budget proposal would also raise hourly rates for nursing home staff by $1.50 beginning in 2027 while also requesting an $18 million increase for nursing facility payment rates.
Lawmakers expressed concern for nursing homes in the state, considering existing access issues.
“Many of these counties have one remaining nursing home,” Rep. Natalie Zeleznikar said. “Without them, it doesn’t matter what services we can put in place at home. The reality is, when people need two, three or four people to lift them, you need to have economies of scale. You need to have a center to have them go, or what happens is they get transported to the emergency rooms.”
Seniors will suffer if there isn’t an adequate budget target, said Toby Pearson, president and CEO of Care Providers of Minnesota.
“This is about protecting the dignity and well-being of Minnesota’s older adults. The state has a moral and fiscal obligation to care for those who have put so much into shaping this state,” Pearson said in a statement.
Rep. Mohamud Noor, co-author of the House budget bill, admitted the bill could have done a better job in creating a better system, but a $1.3 billion cap is going to have an impact on budget decisions.
The state House and Gov. Tim Walz aligned on about $300 million in net cuts proposed for 2026-27, and $1.3 billion over four years, while the state Senate seeks to cut $272 million in net cuts for 2026-27, and $702 million over four years.