Minnesota Governor Tim Walz is highlighting the millions in hospital stability funding at HCMC Wednesday.
Walz visited Hennepin County Medical Center in downtown Minneapolis to mark the historic state investment, which includes $205 million in immediate stability funding and an additional $500 million reserve account available through 2031 to offset the facility's high volume of uncompensated care.
"We know that it's a first step," said Walz. "We know that this did not fix it in its entirety. We know there are more things that need to be done. If we could get some stability, and I will just say it, some sanity out of the federal government around healthcare, that would go a long ways to helping us."
It’s still unknown how the state will address ongoing financial concerns for smaller rural hospitals that do not meet the strict criteria for this specific reserve fund. But Walz did acknowledge that they still require critical aid.
"A lot of Minnesotans now understand the critical nature of this, and it puts it into perspective that when the federal government is unable to get things done or passes things like HR-1, the impact becomes very personal for people all across Minnesota," adds Walz.
H.R. 1, officially known as the "One Big Beautiful Bill Act," is a massive federal budget and reconciliation law signed on July 4, 2025. It enacts sweeping legislative changes across taxation, healthcare, immigration, and public benefits. It also enacts approximately $1.1 trillion in federal healthcare spending cuts over a decade, significantly impacting Medicaid funding and restructuring reimbursements.
Hennepin Healthcare is the state's premier Level One Trauma Center, and Hennepin County authorities had been sounding alarm bells that the hospital was in danger of closing as soon as this summer without state aid.
