A pitch from Gov. Tim Walz to dramatically overhaul how Minnesota delivers human services programs was declared "DOA" by at least one key legislator before the ink even dried.

Why it matters: Virtually everyone at the Capitol agrees that Minnesota has a fraud problem, but they can't reach a consensus on how to fix it.

Driving the news: The governor's latest package of reforms, released Tuesday, contains some of the most sweeping changes proposed to date in response to concerns about significant fraud targeting Medicaid-funded services.

• The biggest change: Shifting more administration and oversight from counties and the private health plans that manage benefits for most Minnesotans enrolled in Medicaid back to the state.

What they're saying: Walz and his deputies said the goal is to modernize and streamline an antiquated, decentralized "patchwork" system they argue has left the state susceptible to fraud.

Reality check: GOP Rep. Paul Torkelson, co-chair of the powerful House Ways and Means Committee, said giving the embattled Department of Human Services a bigger role in the process "has no future as far as I can tell" at the divided Legislature.

• "To put more responsibility on a state agency that acts irresponsibly, to me, is just at the very start a bad idea," he said. "They haven't been able to handle the responsibility that they've got."

The intrigue: Walz's proposal also drew pushback from at least one influential Democrat.

• Sen. John Hoffman, chair of the Senate Human Services Committee, said he was "disappointed" that the governor introduced his proposal "without a thorough conversation" with committee members.

Yes, but: DFL Rep. Mohamud Noor, co-chair of the House's human services committee, pointed out that there's some overlap between the governor's plan and proposals supported by House Democrats, even if the details differ.

• He argued that giving DHS more control would lead to stronger legislative oversight, accountability and transparency.
• "I think we are aligned," he told Axios. "But it's how do we get there."

Follow the money: The state budget director estimated that the price tag for the shift could total $72 million over the first four years, before accounting for expensive technological upgrades.

• Moving more work under DHS would also require hundreds of new state government jobs, a move Torkelson argued leads the state "in the wrong direction."

What we're watching: While Walz's full package faces an uncertain path, a related pitch to upgrade outdated computer systems used for these programs does appear to have bipartisan support.

The debate over "MCOs"

"My friends and I love happy hour, just like many of you do, I am sure. Over a shared drink, we get to reminisce about parts of our life, military service, raising a family, the loss of a friend, and celebrating the golden phase of our lives, too."

LeBrun, who lives at Amira Choice in Champlin, said the change would give residents "the peace of mind that we can enjoy life, but not be out slipping on the ice to stop and get our box of wine."

• The bill cleared its first committee on a voice vote.

🕵🏻‍♀️ A retired Minneapolis cop and her sister are trying to figure out what happened to Bill Underhill, who walked out of his Dinkytown apartment in 1969 and was never seen again. (Star Tribune)

🌿 The mayor of Forest Lake will open the city's first cannabis dispensary next to his family's greenhouse and flower shop. (KARE 11)

📆 Ramsey County is offering a property tax extension targeted at residents impacted by the ICE surge. (KSTP)

🎯 Target announced this morning that it's lowering prices on more than 3,000 items this spring, including apparel, home goods, baby essentials and select food and beverages, Axios' Kelly Tyko reports. (Background via Axios)

Metro Transit finished 2025 with ridership about 3% below the previous year.

Why it matters: It's a troubling trend for an agency that is making big investments in service but is still struggling to gain rider buy-in after years of public safety concerns.

• It also came at a time when transit ridership nationally was on pace to increase by nearly 7% in 2025.

Friction point: Light rail remains the laggard, posting a 14% decline in ridership in 2025 despite Metro Transit's ongoing efforts to address drug use and homelessness on trains.

• Serious crime in the system fell by 14% last year, but overall crime increased.

Of note: Track repairs shut down the Blue Line — and the downtown Minneapolis portion of the Green Line — for two weeks in September.

Meanwhile, bus ridership was virtually flat despite Metro Transit's addition of three new bus rapid transit (BRT) lines in 2025, a record. More lines are in planning stages.

• Data from 2025 shows mixed results for BRT: Ridership grew on some existing lines, but fell on others, including the C and D lines.

What they're saying: The agency said it's encouraged by ridership gains on certain lines where it improved service.

Fare changes ahead in 2026

🗓️ Mark your calendar with our Event Board.

Modern Art & Politics at Minneapolis Institute of Art now through July 19: Now showing "Modern Art and Politics" at Mia. Featuring over seventy paintings and sculptures that challenged fascism in 1900s Germany. Only at Mia.

Dangerous Man Brewing will revive its Northeast Minneapolis taproom, this time in the soon-to-be-vacated HeadFlyer Brewing space, the Minnesota Star Tribune reports.

• Look for an end-of-spring opening.

🍝 Risata Cucina, a modern Italian-American restaurant from industry veterans, is now open in downtown Robbinsdale.

• Expect a wide variety of pastas under $25 and a large amaro collection, per Mpls.St.Paul Magazine.

🛒 David Fhima's new grocery store venture The Global Table is set to open inside the new Coborn's in Plymouth tomorrow, per a release.

🚴 A new brewery — and then some — is in the works on the corner of 45th and Minnehaha. Mixed Culture Brewing, run by industry veterans, will operate as a coffee shop in the morning before transitioning to a taproom with live music and a large beer garden, Longfellow Whatever reports.

🍭 Oppa Sweets, the whimsical cotton candy stand we wrote about last week, is "temporarily" closing its Mall of America outpost at the end of March, per its social media. Its Maplewood Mall location will remain open.

👋 Downtown Wayzata restaurant ninetwentyfive is becoming Belle & Grey, an all-day spot under the same ownership, per its social media.

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