Regular Session Ends

The Minnesota Legislature adjourned the 2025 Regular Session on Monday night, but a special session looms on the horizon as legislators failed to pass a complete budget. Despite meeting through the weekend and on Monday, little progress was made to get to final resolution. Each caucus held a press conference or media availability on Monday, and while their specific messages differed, each pointed fingers at others as the reason for the deadlock. Of course, the blame game matters little to those who count on the legislature to get their work done.

Several Bills and Budgets Passed

A complete list of passed laws is available on the Office of the Revisor of Statute’s website. Significant policy and budget bills that were passed include:

  • Agriculture, Broadband and Rural Development Budget and Policy (H.F. 2446)
  • State and Local Government and Elections Budget and Policy (S.F. 3045)
  • Cannabis Policy (S.F. 2370)
  • Housing and Homelessness Budget and Policy (S.F. 2298)
  • Judiciary Policy and Budget (H.F. 2432)
  • Legacy Finance (H.F. 2563)
  • Veterans and Military Affairs Budget and Policy (S.F. 1959)
  • Pensions (S.F. 2884)
  • Unemployment Insurance Funding for School Workers (H.F. 1143)
  • Human Services Policy (H.F. 2115)
  • Workers Compensation Advisory Council Recommendations (H.F. 3228)

Most of the Budget Didn’t Pass

If the legislature is unable to pass a complete budget in a special session by June 30, the following budget jurisdictions may face a shutdown:

  • Commerce
  • Education (K-12, Higher Education)
  • Energy
  • Environment / Department of Natural Resources
  • Health / Human Services
  • Department of Employment and Economic Development (DEED)
  • Transportation
  • Taxes
  • Capital Investment

Special Session Expectations

Governor Walz has expressed his hope to have the budget passed by June 1, which is when layoff notices would begin to be sent pending a government shutdown. The current budget expires after June 30, and any agencies for which a budget has not been passed by that date would face a shutdown beginning on July 1. The Governor has stated that he will call a special session after agreement is reached on all of the budget areas, with the expectation that the special session will be 1-3 days in length.

What Progress Has Been Made

Despite a deadline imposed by leadership of 5:00 p.m. on Wednesday, May 21, for work to be completed on all outstanding budget bills, many of the bills are still being negotiated. Most of the negotiations are taking place behind closed doors. Following are updates that have been made publicly available:

  • Taxes – A working group has been holding public meetings and exchanging offers. They have yet to find agreement.
  • K-12 Education Policy – Agreement has been reached on various K-12 policy provisions. Further information can be found here: Education Finance – 5/22/2025 (mn.gov) Negotiations continue on additional issues.
  • Jobs/Workforce/Labor – Agreement has also been found for these areas. While final language is not available, summaries of the agreement and detailed information can be found here: Workforce, Labor, and Economic Development Finance and Policy – 5/22/2025 (mn.gov)
  • Human Services – Held one public meeting but has not reached agreement.
  • Commerce – A signed agreement among working group members has been posted on social media, but details have not been publicly released.
  • Higher Education – A signed agreement among working group members has been posted on social media, but details have not been publicly released.

May 23, 2025