Governor and Legislative Leaders Agree to Budget Targets

On Thursday of this week, the Governor and legislative leaders announced that they had reached agreement on budget targets, a copy of which can be found here. While this deal is welcome, it comes too late for any realistic hope that the budget work will be completed by the constitutional adjournment deadline of Monday, May 19, at midnight. Conference committees still need to work through many smaller issues, both spending- and policy-related. A special legislative session will be necessary to finish the Legislature’s work.

Health Care for Undocumented Immigrants

The Governor and legislative leaders have been negotiating for weeks — a major sticking point in these negotiations was whether to eliminate undocumented immigrants from eligibility for MinnesotaCare, the state’s health insurance program for low-income residents. Republicans supported the elimination and DFLers generally opposed it. While MinnesotaCare eligibility for undocumented immigrants began January 1, 2025, the budget agreement reached by the Governor and legislative leaders yesterday would end this eligibility on December 31, 2025. However, coverage for undocumented children will continue.

Budget Agreement Opposed

Passing undocumented immigrants health care into law was touted as a major accomplishment of the 2023-2024 DFL Trifecta, so its current elimination is controversial. Speaker Emerita Melissa Hortman (DFL-Brooklyn Park), who signed the budget agreement, acknowledged that it was a very emotional issue for her caucus. House and Senate members of the People of Color and Indigenous Caucus held their own press conference and passionately opposed eliminating health care for undocumented immigrants. It remains to be seen how this opposition will impact passage of the omnibus budget bills and the implementation of the budget agreement.

Tax Bill Update

With only three days left in the legislative session, neither the House nor the Senate have held a floor debate or passed an Omnibus Tax Bill. The House Omnibus Tax Bill, H.F. 2437, was scheduled to be heard on the House Floor on Tuesday, but it was pulled at the last minute. Since tax bills must originate in the House, the Senate is unable to pass its version of the bill, S.F. 2374.  It is likely that the Omnibus Tax bill will be addressed in a special session.

Special Session and 2026 Legislative Session

Legislative leaders have indicated that they hope to hold a special session on Thursday, May 22, to pass any omnibus bills that aren’t approved by Monday’s deadline. Also, it was announced this week that the 2026 Legislative Session will convene on February 17, 2026. We’ll see you there!

May 16, 2025