A Ticking Time Bomb
Minnesota’s vast and expanding welfare system
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Including the $6 billion passed in the 2023 legislative session, spending on welfare programs such as Medicaid, Temporary Assistance for Needy Families (TANF), and childcare is slated to grow by $14 billion during the next four years. In that period, $42 of every $100 in new general fund spending will be allocated to health and human services. Minnesota is among the most generous states in the country when it comes to welfare spending, ranking third in the nation on spending per person living below federal poverty at $34,379.
The expansion in Minnesota’s welfare spending has often exceeded growth in spending for other programs, gradually increasing welfare’s proportion of the budget. HHS spending as a share of general funds grew 23 percent between 2000 and 2019, surpassing all other major state spending categories.
“If left unaddressed, Minnesota’s welfare system is a fiscal time bomb.”