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Fraud allegation payment withholding and grant oversight rules pass legislature

By Alex Smith

Minnesota HF 3629 has passed both chambers and was presented to the governor on May 20, 2026. The bill would allow program payment withholding when there is a credible allegation of fraud, change grant management provisions and require program integrity reports.

The bill was sponsored by Bahner along with two co-sponsors. The House repassed the bill as amended by the Senate on May 17, 2026, by a vote of 134-0. The Senate had returned the bill with an amendment, and the House voted to concur with those changes before sending it to the governor (source: https://openstates.org/mn/bills/2025-2026/HF3629/).

The bill is now before the governor, who may sign or veto it.