Inside Minnesota’s $40 Million bet on IT modernization

What does it take to modernize state government when legacy systems, limited budgets and competing priorities stand in the way? Minnesota is taking a different approach, using a $40 million Technology Modernization Fund to accelerate projects across state agencies. The initiative has earned national recognition from the National Association of State Chief Information Officers — but what makes the model work, and what can other states learn from it? This week we’re joined by Jon Eichten, the commissioner of Minnesota IT Services and state chief information officer, to explore those questions and more.

Top stories this week:

New York City has launched NYC Mental Health Connect, a website helping residents find mental health and substance use services from more than 600 providers. Users can search based on insurance, language, age and appointment availability, with options ranging from outpatient care and crisis services to housing and employment support. The platform received $5 million in one-time funding from New York state’s Office of Mental Health. The launch aims to address barriers to care, as a city report found that 24% of teens who wanted or needed mental health care did not know where to find it.

Minnesota is facing potential Medicaid funding cuts as the Trump administration ramps up its fraud crackdown. CMS has deferred $550 million in state funding and threatened to withhold $2 billion annually. As Minnesota awaits a decision on the deferred payments, state officials are demanding transparency into the AI and data analytics tools the federal government used to flag health care providers as potentially high-risk.

A new economic study estimates that eliminating the federal E-Rate program, which helps schools and libraries pay for internet access, could cost the U.S. economy $4.2 billion annually. The study found that every dollar in federal support removed would reduce economic output by about $1.60, with losses also affecting wages and tax revenue. The findings come as the Federal Communications Commission reviews the program, and is in the process of gathering comments.

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