Keeping Law SimpleLegislation, clearly explained
Back to Minnesota
Minnesota2026Passed Legislature

HF3900

Changes to How Minnesota's Permanent School Fund Works and Pays Schools

Last scannedAug 22, 2026, 3:39 AM

In one sentence

This bill proposes a change to the state constitution that would set a fixed percentage of the school fund for distribution to schools, replacing the current rule based on actual investment income.

What it does

  • Proposes changing Article XI, Section 8 of the Minnesota Constitution regarding how the permanent school fund is managed and distributed.
  • Sets the amount sent to schools at a fixed rate of 4.5 percent of the average value of the fund over the previous three years.
  • Removes rules that required spreading investment gains or losses across ten-year periods before paying out money.
  • Requires voters to approve this change in the November 2026 general election for it to take effect on July 1, 2027.
  • Updates state laws to match the new constitutional language if voters say yes.

Who it affects

  • Public school districts across Minnesota that receive money from the permanent school fund.
  • The State Board of Investment and other officials who manage the fund's assets.
  • Minnesota voters, who must vote on this change in the 2026 election.

Limits and unknowns

  • These changes only happen if voters approve them in the November 2026 election.
  • The new payment formula does not start until July 1, 2027, for money paid out in fiscal year 2028.

Plain language

Terms to know

Permanent School Fund
A state-owned pool of money from land sales and investments used to support public schools over a long time.
Distributable Amount
The specific sum of money calculated each year that is sent out from the fund to pay school districts.

Official record

Sources

Validated
Official bill pageIntroduced textOfficial digestCurrent bill textStored full record

Official summary

Permanent school fund investment, management, and distribution policy modified; and constitutional amendment proposed.

Official activity

Bill history

  1. Presented to Governor 05/20/2026House
  2. Presentment date 05/20/26Senate
  3. Conference committee reportHouse
  4. House adopted HCC report and repassed billSenate
  5. Senate accedes, conference committee of 4 be appointedHouse
  6. House not concur, conference committee requestedSenate
  7. Returned from Senate with amendmentHouse
  8. Special Order: Rule 45 amendment strickenSenate
  9. Comm report: Rule 45-amend, subst. General Orders SF3593Senate
  10. Authors added Hansen, R., and DavidsHouse
  11. Received from HouseSenate
  12. AmendedHouse
  13. House rule 1.21, placed on Calendar for the Day Monday, May 4, 2026House
  14. Committee report, to adoptHouse
  15. Author added GanderHouse
  16. Authors added Burkel and SkrabaHouse
  17. Author added MyersHouse
  18. Committee report, to adopt as amended and re-refer to Rules and Legislative AdministrationHouse
  19. Author added MuellerHouse
  20. Author added WarwasHouse