The Minnesota Senate passed $40 million in one-time rental assistance for counties and tribal governments on a 35-32 vote Wednesday.

Democrats say the relief could help those who were fearful of leaving their homes to go to work during Operation Metro Surge, the Trump administration’s mass deportation operation in Minnesota, but the funds could also be used to address issues outside of immigration enforcement impacts.

“Minnesotans are struggling to pay bills and make rent as tariffs drive up costs for food and goods, health insurance costs and gas prices spike, and property taxes rise due to budget cuts and cost shifts from the Republican Congress,” Senate Majority Leader Erin Murphy said in a statement Wednesday. “Since last year, we’re seeing the highest housing eviction rates in state history, and fully half of all households are struggling to afford their monthly rents.”

Sen. Lindsey Port, DFL-Burnsville, author of SF3596, said on the Senate floor Wednesday that Minnesotan working families are experiencing a “perfect storm.”

“Rising costs of food, health care, school supplies and gas, combined with massive federal cuts to programs like SNAP and supportive housing are pushing more people to their breaking point,” she said.

Port cited a recent analysis from the Center for Urban & Regional Affairs at the University of Minnesota , which estimated total excess rent debt as a result of Operation Metro Surge across Minnesota at $27.4 million to $51.3 million, on top of roughly $44.6 million in rent debt typically expected during any two-month period in the state.

“We also know of the countless inspiring stories of neighbors stepping up — buying and delivering groceries, paying utility bills, delivering rides to school and work and so much more. But community goodwill and mutual aid cannot replace our responsibility of the state to prevent further unnecessary suffering in the forms of eviction and homelessness,” she said.

The bill redirects $40 million in unused funds from the “Tyler Fund,” a tax forfeiture settlement account established in 2024, to the state treasury.

“These funds exist after the historic settlement in the case of Geraldine Tyler, a Minneapolis resident who stood up for herself and people like her, whose housing was wrongfully taken through punitive government overreach,” Murphy explained. “This legislation is a fitting use of the remainder, as it goes to help Minnesotans whose access to stable housing is threatened by the horrific actions of this federal government.”

Sen. Steve Drazkowski, R-Mazeppa, said the money would go to people “that either don’t work or refused to work in the last several months,” and that the bill is addressing both a “fake” and “self-inflicted” crisis.

“Democrats tried to inflict upon the state — especially in the biggest cities of our state over the last few months — directing chaos in our largest cities in our state, directing people through Signal chat groups to go out and interfere with law enforcement, creating chaos, confusion and fear in people by our governor and our attorney general and the mayor of Minneapolis, that’s what we have before us,” he said.

Sen. Scott Dibble, DFL-Minneapolis, encouraged his Republican colleagues to “spend some time, maybe visiting with the people we’re talking about,” adding that he helps to support a family affected by Operation Metro Surge — a mom and three kids.

Dibble described them as “kind, hard-working, loving, and scared out of their minds, traumatized by what they’ve experienced.”

“They weren’t taking anyone’s instruction to stay home. They don’t even want to go outside to get their mail or take out their garbage. They feel trapped in their own home because they feel endangered by the actions of their own government,” he added.

Sen. Zach Duckworth, R-Lakeville, said he could think of many other ways Minnesotans would like lawmakers to spend $40 million — on education, namely.

“None of those issues, no matter how critical they may be, have been deemed politically advantageous to make headlines with,” he said.

Sen. Michael Kreun, R-Blaine, introduced an amendment to the bill that was unanimously adopted to direct 5% of the appropriated $40 million to evaluate compliance as well as detect and prevent misuse of the aid. Kreun was one of several Republicans to mention concerns about potential fraud.

The measure would still need to pass a tied House and get a signature from Gov. Tim Walz. House Republicans have already expressed opposition to funding assistance in response to ICE actions and impacts.

“In terms of something that’s specifically a bailout to businesses or folks who chose to stay at home or to do a general strike, which the DFL party promoted, obviously, people’s actions have consequences. We’re not really interested in a bailout along those lines,” said House Leader Rep. Harry Niska, R-Ramsey.

The passage of the Senate bill comes the same day that Minneapolis Mayor Jacob Frey vetoed a measure that would have temporarily slowed eviction notices. The House version of the bill, HF3403, is up for debate in the House Housing Finance and Policy Committee on Wednesday afternoon.

Although the chances of the House passing rental assistance are slim, monetary relief has been met with less resistance than other DFL proposals in response to Operation Metro Surge, such as limiting masking for federal agents or barring federal agents from schools and hospitals. Republicans argue the state doesn’t have the authority to regulate those practices.