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Walz’s nursing home cuts leave most vulnerable behind

Minnesotans take pride in caring for our most vulnerable — our seniors, veterans, and children. But now, Gov. Tim Walz is slashing funding for long-term care facilities across the state, putting thousands of seniors at risk.

Over the next four years, these cuts will devastate rural communities, forcing nursing homes to reduce staff, eliminate beds, and even shut down entirely — leaving families with fewer options for care.

In Senate District 22 alone, these cuts total over $15 million from 2026 to 2029. Statewide, more than $218 million over the next four years is being pulled from long-term care at a time when nursing homes are already struggling with inflation, staffing shortages, and rising costs. In 2023, nursing homes were in such a crisis that the Legislature passed a bipartisan rescue package — but that funding will run out in a matter of months.

Now, Gov. Walz’s proposed cuts will push these facilities back into crisis mode, leaving seniors and their families scrambling for care.

Minnesota’s senior population is rapidly growing –18 percent of Minnesotans are currently 65 or older, and by 2030, one in four will be. Yet, at the same time, our nursing home capacity is shrinking. As of February 2024, Minnesota had 33 percent fewer nursing facility beds than in 2005, according to the Center for Rural Policy and Development. That means thousands of seniors are already struggling to find care, and these cuts will only make things worse.

Why is Gov. Walz doing this?

Because he’s trying to fix his budget mess at the expense of Minnesota’s seniors. In just a few years, the governor and legislative Democrats have increased government spending by 40 percent, burning through an $18 billion surplus and turning it into a $6 billion deficit.

Now, instead of taking responsibility for reckless overspending, they’re forcing nursing homes and caregivers to foot the bill.

A recent survey from Long-Term Care Imperative, which represents more than 80,000 caregivers in Minnesota, paints a grim picture: 89 percent of nursing homes say their financial situation is deteriorating, and 70 percent of assisted living providers say they will be forced to adjust wages due to funding shortfalls. There are already 12,500 unfilled caregiver positions across the state, and these cuts will only deepen the workforce crisis.

Currently, the state automatically adjusts Medicaid reimbursement rates every two years based on inflation, helping providers keep up with rising costs. But Gov. Walz wants to cap this increase at just 2 percent per year, even though the Federal Reserve projects inflation at 2.3 percent or higher. This might save the state money on paper, but in reality, it will cripple struggling nursing homes and force more closures.

Long-term care advocates have rightly called these cuts a slap in the face. Instead of ensuring that our seniors age with dignity, Gov. Walz and his administration are leaving them out in the cold, with no plan to replace this lost funding or address the growing senior population. We should be investing in long-term care, not cutting it.

Our seniors and caregivers deserve better, and Gov. Walz must reverse course before it’s too late.

— Rich Draheim is a Republican state senator who represents District 22

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