Session Set to Begin

The Minnesota Legislature reconvenes on Tuesday, February 17, for the 2026 legislative session, but expect the first day to only include ceremonial activities along with a day of remembrance for Speaker Emerita Melissa Hortman. Because the legislature already has passed a two-year budget, the legislature isn’t required to pass any bills in 2026, though hope for passage of a bonding bill is high. While most expect few bills to make it to the Governor’s desk for a signature, some legislation will pass. Following is a calendar of key dates for the upcoming session:

  • February 17 – First day of session
  • Late February – Release of the February Forecast
  • March 27 – First committee deadline
  • March 28-Apri 6 – Legislative break
  • April 17 – Final committee deadline
  • May 18 – End of legislative session

Security Changes in St. Paul

Likely the biggest change at the state Capitol this year will be the implementation of security measures before entering the building. While all the details are still not fully known, it appears that metal detectors will be placed at three building entrances, and those will be the only entrances that can be utilized by the public, including legislators and staff. Individuals who have a valid permit to carry will be allowed to bring their gun into the Capitol, however guns will not be allowed by anyone who wishes to enter the Senate viewing gallery.

New security measures will also be in place in the Senate building. All visitors were already required to check in with security to visit members of the House of Representatives in their offices.

Governor’s Proposal Starts Capital Investment Process

The 2026 capital investment (bonding) process was kicked off on January 15 when Minnesota Management and Budget released Governor Tim Walz’s bonding recommendations. The plan totaled $907 million with $700 million in general obligation bonds and $207 million from other sources such as appropriation bonds, general fund cash, trunk highway bonds/cash, and user-financed bonds. The Governor’s recommendations impact the following areas:

  • Asset preservation and maintenance of existing infrastructure
  • Water and wastewater systems
  • Transportation projects
  • Public safety and corrections facilities
  • Housing and economic development
  • Other local and state projects such as regional parks and environmental improvements.

The House and Senate Capital Investment Committees will begin their own deliberations by reviewing the Governor’s plan before they begin to build their own bonding bills. Because the Minnesota Constitution requires a bonding bill to pass with a three-fifths majority in both the House and Senate, bipartisan support is essential for passage.

Good News-Bad News on the State Budget

An update on Minnesota’s budget situation is the proverbial tale of good news-bad news.  First the good news: the 2026 legislature convenes with a FY 26-27 biennial budget in place and a projected general fund surplus of $2.465 billion. This good news was bolstered on February 10 by strong January revenue collections reported by Minnesota Management and Budget. Net general fund revenues in January were $513 million (roughly 16.7 %) above the previous forecast, and fiscal-year-to-date receipts totaled approximately $19.4 billion (about 3.1 % above forecast). With this short-term infusion of revenue and the projected surplus in FY 26-27, the Legislature will not feel pressure to pass a supplemental budget to fix a short-term budget hole.

Now the bad news.  Looking beyond the current biennium, Minnesota Management and Budget projects a growing structural budget gap in the FY 28-29 biennium of $2.96 billion. This structural budget gap is driven largely by higher health care costs and slower economic growth, thereby increasing expenditures faster than projected revenues.

This good news-bad news budget picture will be updated at the end of February by the latest budget and economic forecast, and these numbers will then be used to finalize any supplemental budget. The question remains whether the Legislature and the Governor will attempt to take steps to limit the structural deficit in FY 28-29.

Retirements and Musical Chairs will have an Impact

At least 37 legislators have already announced that they plan to retire or run for a different position following this legislative session. This level of turnover will have implications for how the 2026 legislative session plays out. Consider that not one, but three members of the House Republican Caucus are vying to be the party’s gubernatorial candidate. This will impact how that caucus approaches decisions and, with Speaker Lisa Demuth as one of those candidates, will certainly impact negotiations with the current Governor as well.

Many of those retiring are long-time members of the House and Senate, and history shows that those who are retiring can be a less predictable than they were in the past. Some feel a sense of freedom to step away from the party line. Others may be willing to negotiate more in order to pass that last piece of legislation that they hope will be their legacy.

February 13, 2026