On July 3, 2025, the U.S. House of Representatives passed H.R.1, referred to as the “One Big Beautiful Bill Act” (“OBBBA”). The following day, President Trump signed the bill into law, marking a key milestone in his second-term agenda.

OBBBA introduces sweeping changes to numerous areas of U.S. federal income tax law in addition to a large number of non-tax budgetary measures. Among its many provisions, the Act extends and modifies several key tax provisions enacted in the Tax Cuts and Jobs Act of 2017 (“TCJA”) and introduces new limitations and sunsets on certain energy-related tax incentives established under the Inflation Reduction Act of 2022 (“IRA”).

At 870 pages, the One Big Beautiful Bill Act (OBBBA) spans a broad range of issues—from broad-based tax changes to Medicaid, healthcare, defense, education, federal land and resource management, and infrastructure—and will bring significant changes across multiple industries and sectors. While the full impact of the law will become clearer over time, its practical effects will depend heavily on forthcoming regulations, IRS guidance, and other administrative interpretations. The President has already issued an executive order directing the Treasury Department and other agencies to enforce the new limitations on renewable energy incentives “strictly”, including revisiting prior guidance for determining when a project is “under construction”.  In addition, the full impact of a number of policies contained in OBBBA will depend on how state governments respond (including, for the tax changes, which changes each state government decides to conform to for state tax purposes).

Below is a summary of the key tax provisions of the bill that are most relevant to business and investment activity. The Winthrop & Weinstine attorneys listed at the end contributed to this summary and would be pleased to discuss how these changes may affect you, including for any specific transactions and planning strategies.  We will be monitoring closely any implementing guidance as it is issued, as well as relevant state legislative activity.

Headline Business Tax Provisions

• Business Interest Limitation – 163(j): The limitation on the business interest deduction has been returned to 30% of EBITDA. Since 2022, businesses were limited to 30% of EBIT absent falling under an exception, e.g. certain real estate trades or businesses, which meant that businesses with significant depreciation and amortization deductions were put at a disadvantage in deducting business interest. The change is effective taxable years beginning after 2024. OBBBA permanently adopts the more generous EBITDA-based limit used prior to 2022. However, the definition of Adjusted Taxable Income (ATI) is modified to exclude income inclusions under Sections 951(a), 951A, and 78 (i.e., certain controlled foreign corporation income), which could reduce the ATI base for some taxpayers. Note that OBBBA expands the deductibility cap to apply to business interest that must be capitalized, along with other changes that further reduce the cap in certain situations. The OBBBA also establishes a new ordering rule that requires that the Section 163(j) limitation be determined before the application of any interest capitalization provisions, except for interest capitalized under Sections 263A(f) and 263(g) (i.e., for certain produced property and straddles).
• Bonus Depreciation – 168(k): The OBBBA permanently reinstates elective expensing (100% bonus depreciation) for qualifying business property, such as machinery, equipment, and other short-lived assets, acquired and placed in service after January 19, 2025. This provision allows businesses to immediately deduct the full cost of such property in the year it is placed in service, rather than depreciating it over time. Originally introduced by the TCJA, this provision was set to phase down starting in 2023 and expire after 2026.
• Qualified Production Activities – Temporary Expensing: Additionally, the OBBBA provides elective temporary 100% expensing for certain newly constructed nonresidential real property used in “qualified production activities.” These activities generally include the manufacturing, production, and refining of tangible personal property in the U.S., excluding agricultural and chemical production. To qualify, construction must begin after January 19, 2025, and before January 1, 2029, and the property must be placed in service before January 1, 2031.
• 199A Pass-Through Business Deduction: The OBBBA permanently extends the 20% deduction for qualified business income for noncorporate taxpayers.  This deduction generally applies to business income (excluding employee wages or income from specified services) and certain passive income, subject to limitations.  Initially, introduced in the TCJA, the deduction was set to expire after 2025. OBBBA also eases the income-based phaseout of the deduction and introduces additional taxpayer-friendly adjustments.
• SALT Deductions: The OBBBA increases the federal deduction cap for state and local taxes (SALT) from $10,000 to $40,000 ($20,000 for married individuals filing separately) for tax years 2025 through 2029. The cap increases by 1% annually beginning in 2026 and reverts to $10,000 ($5,000 for separate filers) in 2030. For tax years 2025 through 2029, the increased cap is phased down for taxpayers with modified adjusted gross income over $500,000. The $40,000 cap is reduced by 30% of the excess over the threshold, but not below $10,000.  Ultimately, the OBBBA did not make any changes regarding the “pass-through entity tax” workaround to the cap on SALT deductions for business and investment income earned by certain pass-through entities.

Research & Development Credits and Expensing

• Full Expensing Reinstated: The OBBBA permanently restores the ability to fully deduct domestic research and experimentation (“R&E”) costs in the taxable year they are paid or incurred, reversing the five-year amortization requirement introduced by the 2017 TCJA. This change is retroactive to tax years beginning after December 31, 2021, and is codified in the revised language of Section 174(a), effectively reinstating pre-TCJA treatment for domestic R&E expenditures.
• Transition Relief for Amortized Costs: The OBBBA provides transition relief for taxpayers with domestic R&E costs that were capitalized and amortized under the TCJA regime between 2022 and 2024. Under a new rule in Section 174A(c)(2)(A), taxpayers may fully recover any remaining unamortized domestic R&E expenditures incurred during that period. The catch-up deduction may be taken entirely in the first taxable year beginning after December 31, 2024 (typically 2025 for calendar-year taxpayers), or spread evenly over two years—2025 and 2026—at the taxpayer’s election.
• Foreign R&E Still Amortized: The OBBBA’s reinstatement of full expensing applies only to domestic research expenditures. Foreign R&E costs remain subject to the existing amortization requirement under Section 174A(d), which mandates a 15-year straight-line amortization period for research conducted outside the United States. This distinction underscores the legislative intent to incentivize U.S.-based innovation and may impact how multinational companies allocate their global research activities. Taxpayers engaged in cross-border R&D should carefully evaluate their cost tracking systems and consider whether certain activities can be restructured to meet the criteria for domestic treatment and qualify for more favorable tax benefits.

Energy Credits

• Wind and Solar Energy – 45Y and 48E: The OBBBA repeals the clean electricity production (45Y) and investment (48E) tax credits for solar and wind facilities placed in service after 2027. Previously, these credits were available through 2032, followed by a phasedown.  Other non-solar or wind technologies under 45Y and 48E remain eligible for the full credit through 2032, with a phasedown beginning thereafter.  For the solar/wind 45Y/48E repeals, the 12/31/27 placed-in-service deadline applies only to facilities for which construction has not started by 7/3/2026.
• Energy Efficient Homes – 45L: The Section 45L new energy efficient home tax credit is repealed for homes constructed and acquired after June 30, 2026. Previously, the credit was available through 2032.
• Residential Clean Energy – 25D: The Section 25D residential clean energy tax credit is repealed for expenditures made after December 31, 2025. Previously, the credit was available for property placed in service before December 31, 2034.
• Qualified Commercial Clean Vehicles – 45W: The Section 45W qualified commercial clean vehicles tax credit is repealed for vehicles acquired after September 30, 2025. Previously, the credit was available through 2032.
• Alternative Fuel Refueling Property – 30C: The Section 30C alternative fuel vehicle refueling property tax credit is repealed for property placed in service after June 30, 2026. Previously, the credit was available through 2032.
• Clean Hydrogen Production – 45V: The Section 45V clean hydrogen production tax credit is repealed for hydrogen produced at facilities beginning construction on or after January 1, 2028. Under prior law, the credit was available for facilities that began construction before January 1, 2033.
• Advanced Manufacturing – 45X: The Section 45X advanced manufacturing production tax credit is repealed for eligible components that are integrated, incorporated, or assembled into another eligible component, effective for components sold in tax years beginning after 2026. A phasedown of the credit for sales of critical minerals begins in 2031. In addition, no credit is available for wind energy components sold after 2027.
• Clean Fuels – Section 45Z: The Section 45Z clean fuel production tax credit is extended for fuel sold through December 31, 2029 (previously scheduled to end December 31, 2027).
• Foreign Entity Restrictions – Sections 45Y, 48E, and 45X: New limitations disallow clean energy tax credits if the taxpayer is a specified foreign entity or foreign-influenced entity. Foreign entities include entities from China, Iran, North Korea, and Russia. Additionally, for Sections 45Y, 48E, and 45X, credits are unavailable if the taxpayer receives material assistance from a prohibited foreign entity. This restriction applies to facilities beginning construction and components sold after 2025. Material assistance is defined relative to a threshold cost ratio.
• Transferability Restrictions: Transfer of clean energy tax credits to specified foreign entities is prohibited across applicable provisions.  Otherwise, transferability of tax credits was unaffected by OBBBA.
• Elective (Direct) Pay – Sections 45Q, 45X, and 45V: Elective pay remains available for applicable entities (e.g., tax-exempt organizations) and for eligible taxpayers under:
  • Section 45Q (carbon oxide sequestration),
  • Section 45X (advanced manufacturing production), and
  • Section 45V (clean hydrogen production), while the credit remains in effect.

Other Tax Credits

• Low-Income Housing Tax Credit (“LIHTC”): The OBBBA increases the 9% LIHTC allocation by 12% for calendar years after 2025. In addition, for private activity bond-financed projects, the 50% test is effectively reduced to 25% for buildings placed in service after December 31, 2025, provided that bonds financing at least 5% of the aggregate basis of the building and land are issued in 2026 or later.
• New Markets Tax Credit (“NMTC”): The OBBBA permanently extends the NMTC program, establishing a $5 billion annual allocation limitation for each calendar year after 2019. It also allows unused credit allocation authority to be carried forward for up to five calendar years, with any unused authority from 2025 or earlier treated as if it occurred in 2025.
• Advanced Manufacturing Investment Credit – 48D: Tax credit increased from 25% to 35% for property placed in service after December 31, 2025, but credit termination date of December 31, 2026 is retained.

Opportunity Zones

• Permanent Extension of the QOZ Program: The OBBBA eliminates the sunset provision for the Qualified Opportunity Zone (“QOZ”) program, which was originally scheduled to expire on December 31, 2026. This change makes the QOZ program permanent, with most modifications taking effect on January 1, 2027.
• Rolling 10-Year Designation Period: The first designation date is July 1, 2026, by which time state governors must specify QOZs to be effective from January 1, 2027, through December 31, 2036. Subsequent re-designations will occur every ten years, with each designation effective for the next ten calendar years.
• New Rolling Gain Deferral: In conjunction with the permanent extension of the QOZ program, for investments made after December 31, 2026, deferred gains from QOZ investments will be recognized on the fifth anniversary of the investment, rather than on a fixed date.
• Basis Step-Up: The OBBBA modifies the basis step-up, removing the 5% step-up. Investors will still receive a 10% step-up in basis if the Qualified Opportunity Fund (“QOF”) investment is held for at least five years. However, for investments held for at least five years in newly defined “qualified rural opportunity funds,” investors will receive a 30% step-up in basis.
• Stricter Eligibility Criteria for QOZ Designations: The OBBBA tightens the criteria for QOZ eligibility. After December 31, 2026:
  • Tracts will qualify as QOZs only if the median family income does not exceed 70% of the applicable state or metropolitan area median family income (down from 80%).
  • The poverty rate test (20% or more) remains but is now supplemented with an “anti-gentrification” trigger, disqualifying tracts if the median family income exceeds 125% of the applicable state or metropolitan area median family income.
  • The “contiguous tract” exception from the original 2017 designation process is eliminated.
  • The blanket QOZ designation for all low-income communities in Puerto Rico is repealed, effective December 31, 2026.
• Gain After 30 Years: Under the OBBBA, gains realized on QOF investments that are sold or exchanged after holding the investment for at least 10 years are not subject to tax. However, any appreciation occurring after 30 years will be taxable. Specifically:
  • • For investments sold or exchanged before 30 years, the step-up will reflect the fair market value as of the date of sale or exchange.
    • For investments held for 30 years or more, the basis step-up will be fixed at the fair market value on the 30th anniversary of the investment.
• New Reporting Requirements (and Penalties for Non-Compliance): The OBBBA introduces new reporting requirements for QOFs and businesses. QOFs will need to report to the IRS various details, including the value of total assets, the value of QOZ property, the applicable North American Industry Classification System (“NAICS”) codes, the QOZ census tracts they invest in, investment amounts in each QOZB, the value of tangible and intangible property (owned or leased), the number of residential units they own, and the approximate number of full-time employees. Non-compliance with these reporting requirements may result in penalties of up to $10,000 per return, or up to $50,000 for QOFs with assets over $10 million, with harsher penalties for willful non-compliance.

Other Noteworthy Domestic Business Tax Changes

• Excess Business Losses: The OBBBA permanently retains the limitation on excess business losses for noncorporate taxpayers, a provision originally introduced in the TCJA, which was set to expire in 2028. Under this provision, the “one and done” rule still applies, meaning the limitation is only applicable in the year the loss occurs, and any disallowed loss is carried forward as a net operating loss in future years.
• Qualified Small Business Stock (QSBS) Expansions —1202: The OBBBA increases the gross asset value cap for QSBS issuers from $50 million to $75 million and introduces an inflation adjustment. Additionally, the Act modifies the formula for the per-issuer cap on the QSBS exclusion, raising the dollar-based limit on excluded gain to $15 million (adjusted for inflation), up from the current $10 million limit. The OBBBA also shortens the holding period required to qualify for QSBS benefits by introducing a 50% exclusion for gain recognized if the stock is held for three years, and a 75% exclusion for gain recognized if held for four years. The 100% exclusion under current law remains in place for stock held for five years or more. The changes to the gross asset value cap apply to QSBS issued after July 4, 2025, and the other modifications apply to taxable years beginning after July 4, 2025.
• Section 179: The OBBBA increased the maximum Section 179 expensing amount to $2.5 million, reduced by the amount by which the cost of qualifying property exceeds $4 million, both of which will be adjusted for inflation.  (Section 179 applies to a slightly broader class of depreciable capital investment than bonus depreciation.)
• Restoration of Taxable REIT Subsidiary Asset Test: The taxable REIT subsidiary threshold is increased to 25 (from 20) % of a REIT’s assets for taxable years beginning after December 31, 2025.
• Tax-Exempt Organizations: The OBBBA adds two new graduated rates (4% and 8%) for the TCJA’s university endowment excise tax on investment income based on the size of endowment per student.   Expanded the list of “covered employees” of certain tax-exempt organizations subject to excessive compensation restrictions to include all employees or former employees.
• Reduced Tax Rate for Agricultural Lending: The OBBBA provides a 25% gross income exclusion for interest earned by domestic banks and insurance companies on loans secured by agricultural real property, effective for taxable years ending after the enactment of the OBBBA.
• Increased Reporting Threshold for Forms 1099-MISC and 1099-NEC:  The reporting threshold for Forms 1099-MISC and 1099-NEC is increased from $600 to $2,000 with the new threshold adjusted annually for inflation.
• Reinstatement of Third-Party Settlement Reporting Thresholds: The OBBBA reinstates the previous Section 6050W reporting thresholds for third-party settlement organizations, requiring reporting only when gross payments exceed $20,000 and the number of transactions exceeds 200.

U.S. International Tax Provisions

• GILTI &FDII: The OBBBA introduces significant modifications to the taxation of global intangible low-taxed income (now renamed “net CFC tested income” (“NCTI”)) and foreign-derived intangible income (now renamed “foreign-derived deduction eligible income “FDDEI”)). These changes include adjustments to tax rates, taxable income computations, and the Section 250 deduction for both regimes, plus new acronyms for both types of income. Under prior law, the NCTI and FDDEI tax rates were determined by applying a deduction under Section 250, which reduced the amount of income subject to tax. The OBBBA permanently adjusts the Section 250 deduction for both NCTIand FDDEI:
  • For NCTI, the deduction is changed to 40%, from 50% (with a previously planned decrease to 37.5% for taxable years beginning after December 31, 2025).
  • For FDDEI, the deduction is now set at 33.34%, replacing the prior 37.5% deduction (which was set to decrease to 21.875% after 2025).

As a result, the post-Section 250 NCTI tax rate is now 12.6% (which rises to an effective rate of 14% when taking into account the revised 10% haircut – reduced from 20% – on associated foreign tax credits) and the effective FDDEI rate is also approximately 14% following the enactment of the OBBBA. The OBBBA also eliminates the ability to reduce NCTI and FDDEI by a deemed return on qualified business asset investment (“QBAI”) when determining the amount of income subject to tax under the NCTI and FDDEI regimes.

In a taxpayer favorable change, interest expense deductions and research & experimentation expenditures are no longer required to be apportioned to NCTI for foreign tax credit purposes.  Instead, NCTI and FDDEI is only reduced by the Section 250 deduction and directly allocable expenses.

• BEAT: OBBBA permanently establishes the Base Erosion and Anti-Abuse Tax (“BEAT”) at a rate of 10.5%, which is an increase from the prior 10% rate.
• CFC-Rules–951, 951B, 954(c)(6), 958: The OBBBA reinstates the rule turning off “downward attribution” in measuring CFC status, which had unintended and burdensome U.S. tax compliance obligations on foreign-controlled enterprises with U.S. subsidiaries. The Act also requires that all U.S. shareholders must include a pro rata share of a CFC’s subpart F income and net CFC tested income (“NCTI”) for their period of ownership as U.S. shareholders (i.e. not just U.S. shareholders on the final day of the CFC’s taxable year). In addition, the Act makes permanent the frequently extended “CFC look-through” rule under Section 954(c)(6).
• New Sourcing Rule: Sales income for inventory produced in the U.S. and sold through a foreign office or fixed place of business are treated as 50% foreign source for foreign tax credit limitation purposes.

Headline Individual Tax Provisions

• Permanent Extension of TCJA Changes: The OBBBA makes the existing individual income tax rates and brackets permanent.  It also increases the standard deduction by $750 for single filers and $1,500 for married filing jointly filers, with the increased amounts made permanent and subject to inflation adjustments.
• Child Tax Credit Expansion: Increases the Child Tax Credit by $200 and makes the change permanent.  The provision also requires that a valid Social Security number be provided for each qualifying child.
• 35% Cap on Itemized Deductions: Limits the tax benefit of itemized deductions for taxpayers in the top marginal bracket (37%) by capping the value of those deductions at 35%.
• Permanent Non-Deductibility of Miscellaneous Itemized Deductions: Permanently eliminates certain miscellaneous itemized deductions that were scheduled to expire under the TCJA, including unreimbursed employee expenses, investment advisory fees, tax preparation fees, certain legal fees, hobby expenses, and safe deposit box rentals.  However, a new exception is introduced for certain unreimbursed expenses incurred by eligible educators.
• No Tax on Tips and Overtime:  The OBBBA provides temporary above-the-line deduction of up to $25,000 for reported tips and up to $12,500 for overtime pay.  The deduction begins on January 1, 2025 and expires on December 31, 2028.  These deductions are subject to a phase-down based on income levels.
• Deduction for Car Loan interest: Provides a temporary deduction of up to $10,000 for interest on car loans associated with vehicles that were finally assembled in the United States.  The deduction applies to interest paid on cars purchased in 2025 and is set to expire at the end of 2028.  The deduction is subject to a phase-down based on income levels.
• Special Tax Deduction for Seniors: Permanently eliminates personal exemptions. For tax years 2025 through 2028, individuals aged 65 and older are allowed a $6,000 deduction, which phases out for taxpayers with modified adjusted gross income exceeding $75,000 ($150,000 for joint filers).
• Trump Accounts: The OBBBA establishes new tax-favored savings vehicles known as Trump Accounts for children under age 18.  Annual contributions are limited to $5,000 per child (indexed for inflation), and distributions are generally prohibited until the child reaches age 18.  Employers may contribute up to $2,500 per employee on a nontaxable basis. Like IRAs, Trump Accounts allow investments to grow tax-deferred.  Under the Trump Accounts Contribution Pilot Program, the federal government will make a one-time $1,000 contribution to accounts for U.S. citizen children born between 2025 and 2028.
• Remittance Tax–4475:  A 1% excise tax is imposed on individuals sending remittances. The tax does not apply to transfers withdrawn from accounts at financial institutions or other funded by U.S.-issued debt or credit cards.
• Tax Credit for Contributions to Scholarship-Granting Tax-Exempt Organizations: Beginning in 2027, the OBBBA establishes a permanent federal income tax credit for up to $1,700 per year for individual contributions to qualified scholarship granting organizations (“SGOs”). The credit is dollar-for-dollar and not subject to an aggregate national cap.  The U.S. Treasury Department will administer the program.  States must opt in and provide a list of eligible SGOs.  Contributions may only be used for scholarships in states that have opted in.  Further guidance will be issued by the Treasury Department through regulations.

The 2023 Legislature passed a suite of new laws that expanded who must register as a lobbyist, particularly in regards to lobbying local governments. (A description of those changes can be found here.) While the prior law only required registration and reporting if you were lobbying at the state level or within certain communities in seven county metro area, the 2023 legislation expanded the scope to include influencing the official action of any political subdivision in the state. In early 2024, the State Legislature postponed the implementation of the new local government lobbying requirements to June 1, 2025. The delay was intended to allow for time to address significant questions regarding implementation and potential unforeseen consequences, including the possibility of thousands of new lobbyist registrants who may not have previously considered themselves lobbyists. Although relatively minor changes were passed by the legislature this year (see below), the broad expansion passed in 2023 officially took effect as of June 1, 2025.

Key Changes in 2025

The State and Local Government and Elections Omnibus bill (S.F. 3045) was the last piece of legislation to pass in the 2025 Regular Session. Article 7 of the bill includes various changes and clarifications to the lobbyist registration laws. The effective date of these changes is June 1, 2025, which coincides with the expansion of local lobbying requirements. In order to further help the public, the Campaign Finance and Public Disclosure Board is required to create a new Lobbyist Handbook, written in plain language, by January 15, 2026.

Limiting Factors on Lobbyist Registration

One of the issues receiving significant concern following the 2023 changes related to at what point a person acting in their professional capacity to provide information to a governing body became a lobbyist for purposes of registration. To clarify the intent of the legislature, several changes were made, including:

• Creating a definition for “expert witness,” and specifying that an expert witness is not considered a lobbyist when communicating with public or local officials if the communication occurs at a public meeting or is made available to the public. This exclusion does not apply if the expert witness is lobbying the Public Utilities Commission.
• In the case of those working on a project funded through conduit financing, a finance professional subject to the Security Exchange Commission regulation who is working with a registered lobbyist and principal is not required to register as a lobbyist.
• Despite not having to register with the Board as a lobbyist, the exemption only applies if the name, employer, and specific subject communicated by expert witnesses and finance professionals is reported to the Board by a designated lobbyist that they are working under the direction of.

More Definitions

The 2023 law notably used the terms “local official” (indicating a non-elected person) and “official action of a political subdivision” without providing clear definitions. Each of these are now more clearly defined to specify that they include people or actions that relate to:

• The authority or ability to make major decisions regarding the expenditure or investment of public money,
• The responsibility or ability to make recommendations to a chief executive or the governing body about major decisions regarding the expenditure or investment of public money, or
• The authority to vote as a member of the governing body on major decisions regarding the expenditure or investment of public money.

Notably, even with these changes, individuals who appear before local elected bodies (including city councils) must consider whether such an appearance triggers lobbyist registration and reporting.

Not Lobbying: The statute is clear that submitting an application for a grant or responding to an RFP is not lobbying, nor are administrative or technical communications related to the same.

Additionally, a “major decision regarding the expenditure of public funds” includes:

• Development and ratification of operating and capital budgets of a political subdivision,
• Whether to apply for or accept state, federal, or private grant funding,
• Selecting recipients for a grant, or
• Tax abatement, tax increment financing, or expenditures on public infrastructure used to support private housing or business developments.

Not Lobbying: Collective bargaining of a labor contract and discussions regarding litigation between the party and the political subdivision are specifically excluded and do not trigger lobbyist registration requirements.

Contingent Fees Exceptions

Minnesota has long had a law prohibiting lobbyist compensation that is dependent upon the outcome of any action for which they are lobbying. The legislature included an exception to this prohibition for attorneys and finance professionals, to the extent that they are working on a project funded through conduit financing.

Other Campaign Finance and Elections Changes in 2025

Article 7 further outlines a new program for non-incumbent Secretaries of State-elect, State Auditors-elect, and Attorneys General-elect to access state funding for inaugural events and transition expenses. It also provides that additional inaugural and transition expenses may be paid through the candidate committees as non-campaign disbursements and requires that candidates not raise or spend for these purposes in any other committee or format.

Other changes include a new requirement for candidates who have signed spending limit agreements to promptly report large personal contributions, a clarification that candidates must file pre-primary and pre-general reports in the year they appear on the ballot, and new disclaimer requirements for unofficial mailings of sample ballots and absentee ballot requests.

Finally, Article 7 expands the definition of a proof of campaign finance violation claim to include any violation of chapters 211A and 211B.

If you have any questions about these changes or any other campaign finance or lobbying issues, please contact Winthrop & Weinstine’s experienced Campaign Finance and Lobbying Compliance teams.

Minnesota is now the fifth state—joining Maine, Oregon, Colorado, and California—to pass what are called “extended producer responsibility” laws, in line with a growing trend across the country [1]. In 2024, Minnesota enacted the Packaging Waste and Cost Reduction Act[2] (the “Act”). The stated goal of this legislation is to encourage sustainable design, while addressing the environmental effects of products brought to market.

For businesses that use packaging in their products (and let’s be honest, who doesn’t?), this new law introduces important changes designed to reduce packaging waste. Businesses will need to navigate these requirements in the near future. In particular, if you are a “producer” under the Act and produce certain packaging, you must be a member of an approved “producer responsibility organization” (“PRO”) starting on July 1, 2025.[3] By January 1, 2029, if you have not joined the PRO, you cannot introduce your packaged products in Minnesota.[4]

WHO MUST COMPLY WITH THE ACT?

The Act imposes new requirements on businesses that are deemed “producers” of packaging in Minnesota. While the Act generally holds the brand owner of a product responsible for compliance, its scope includes companies that introduce packaging into the state, including licensed distributors and resellers in some circumstances.[5] This means that not only manufacturers and brand owners, but also distributors, importers, and even retailers in many cases, will be required to take action under the new law.

Under the Act, the definition of “packaging” is also exceptionally broad, encompassing more than just a visible container around a product. Packaging includes any materials used to transport, protect, market, or handle a product. This means it covers not only traditional containers but also items like pallets, strapping, cushioning, weatherproofing, coatings, labels, and even inks and dyes. Essentially, if any material plays a role in moving or marketing a product, it may be considered packaging under the Act.

Put simply, most businesses will be affected by this law. For example:

• Electronics manufacturers;
• Toy companies;
• Grocery stores;
• Clothing companies;
• Importers that sell directly to consumers;
• Retailers of private-label products;
• Franchisors; and more.

That said, there are some organizations that are not affected:

• Government agencies;
• Nonprofit organizations that are registered 501(c)(3) charitable organizations;
• Small local businesses with less than $2,000,000 in global sales or introduced less than 1ton of packaging into Minnesota in the last fiscal year;
• Paper mills that exclusively use virgin wood fiber in the products they produce (e.g., a paper mill that manufactures paper using only newly harvested wood); and
• Paper mills producing containerboard from 100% postconsumer recycled content (e.g., a facility that makes corrugated cardboard entirely from recycled paper).

In addition, there are some materials exempted from the Act, such as packaging for infant formula, medical food, fortified oral nutritional supplements, drug or medical devices, medical equipment, newspapers, and magazines. The Act also exempts from “covered materials” those that are used to contain a product that is used for the production of another product (essentially B2B sales).

Businesses will need to carefully review the Act’s definitions and forthcoming regulatory guidance, and consider all factors specific to their operations to determine whether they are required to comply with the Act. Given the complexity of the law and its broad scope, it’s important to assess your business’s role and packaging practices to ensure compliance.

What Responsibilities Do Producers Have Under the Act?

The Act establishes a program that requires producers to become members of a PRO.[6] Producers will pay annual fees to the PRO based on the amount and types of packaging they sell.[7] The PRO will provide producers with guidance on compliance with the Act.

The Act states fees paid by producers will fund at least 90% of the costs (phased in over time) related to collecting, sorting, transporting, and preparing packaging and paper products for refill, reuse, recycling, or composting.[8] “Service providers” can receive reimbursements for offering such services, which will likely be paid for in substantial part by PRO membership fees.[9]

The PRO will also develop and implement a “stewardship plan,” approved by the Commissioner of the Minnesota Pollution Control Agency, which outlines how the PRO will expand collection services and cover service and program costs.[10] Through the PRO, producers must work together to meet the program’s requirements, including specific targets for waste reduction, reuse, recycling, composting, and incorporating recycled content in their products.

In particular, the Act establishes that PROs will work with their members to ensure packaging is reusable, refillable, recyclable, or compostable by no later than January 1, 2032.[11] Below is a list of the major milestones set out in the text of the Act:

Failure to comply with the Act carries significant liability, including civil penalties. [12] In cases of willful or negligent violations, producers may even face criminal liability.[13] Thus, businesses need to be aware of these consequences and take proactive steps to comply with the Act.

KEY TAKEAWAYS

To comply with Minnesota’s Packaging Waste and Cost Reduction Act, businesses must determine whether they are a “producer” of “packaging.” Producers must meet certain deadlines, including joining a PRO by July 1, 2025. The initial approved PRO is Circular Action Alliance (CAA) — a 501(c)(3) nonprofit, producer-led organization.[14]

For further advice and detailed guidance on adjusting your business practices in light of this new law, please contact your legal team. As always, the attorneys at Winthrop & Weinstine are dedicated to assisting your business in navigating these complex regulatory changes effectively. Please do not hesitate to contact us regarding any questions or concerns regarding the Act.

We express special thanks to Eddie Brody, who contributed to the research and content of this update.

[1] See Minn. Pollution Control Agency, Packaging waste and cost reduction act (2024) (listing Maine, Oregon, Colorado, and California as the four other states to pass EPR legislation).

[2] Minn. Stat. § 115A.144–1463.

[3] Minn. Stat. § 115A.1448, subd. 1(a).

[4] Minn. Stat. § 115A.1448, subd. 1(b).

[5] See Minn. Pollution Control Agency, Packaging waste and cost reduction act (2024) (noting that a “producer” within the meaning of the Act is generally the product brand owner); see also Minn. Stat. § 115A.1441, subd. 26(a)(iii) (“. . . if there is no person to which item (i) or (ii) applies, the producer is the brand owner of the item . . . .”).

[6] Minn. Stat. § 115A.1448.

[7] Minn. Stat. § 115A.1454, subd. 1.

[8] Minn. Stat. § 115A.1455, subd. 4(a).

[9] Minn. Stat. § 115A.1454, subd. 1(6)(ii).

[10] Minn. Stat. § 115A.1447(2).

[11] Minn. Stat. § 155A.1448, subd. 1(c).

[12] See Minn. Stat. § 115A.1462; Minn. Stat. § 115.071; Minn. Stat. § 116.072.

[13] Minn. Stat. § 115A.071, subd. 2(a).

[14] See Minnesota, Circular Action Alliance, https://circularactionalliance.org/circular-action-alliance-minnesota (last visited June 19, 2025).

On June 5, 2025, the Minnesota Office of Cannabis Management (“OCM”) held its first lottery for applicants seeking cannabis business license types that are available in limited quantities. This marks the first grant of potential licenses to 249 applicants for cultivator, manufacturer, retailer, and mezzobusiness licenses.  A second lottery for retail licenses is scheduled for late July.  In addition, over the coming weeks, applicants for “uncapped” license types—such as the popular microbusiness license—will continue to receive word about preliminary license approval.

These lotteries mark the most significant milestones to date for aspiring cannabis entrepreneurs seeking to become legitimate licensed cannabis businesses. However, additional regulatory and operational hurdles loom, even after preliminary licenses are awarded. Retail licensees and endorsement holders must now tackle zoning compliance, secure suitable property, and navigate local municipal regulations before passing a state inspection and ultimately opening their doors to their cannabis business—all of which must be completed in 18 months.

Securing Property

Acquiring property for a new business is already difficult, but for licensees with retail privileges, Minnesota’s regulations require an additional layer of regulation and complications.

First, preliminary licensees need to determine where they will be allowed to operate. Although municipalities cannot wholly prohibit cannabis businesses in their respective jurisdictions, local governments do have the authority to limit the time, place, and manner of cannabis business operations via ordinance.

Next, preliminary licensees need to pay close attention to all lease provisions they sign. Due to the federal illegality of cannabis, standard contract clauses that would be acceptable in other industries could be problematic for a cannabis business. Many template leases were drafted to prohibit the type of behavior cannabis businesses now require—including, for example, provisions limiting odor and prohibiting (federally) illegal activity.

Lastly, cannabis entrepreneurs need to be aware of the many statutory and regulatory requirements that impact whether a space will be suitable for their retail or cultivation needs. Minnesota law contains express requirements regarding security enhancements, lighting, display limitations, and delivery and customer entry points, in addition to other standard building codes.  Such necessary leasehold improvements may require hefty investment by licensees to ensure compliance, and tenants should be aware of lease terms that may impact their ability to make essential improvements to the space they are renting.

Municipal Approval

Once a licensee has secured a property, the next step requires thoughtful planning and intentional collaboration with local government. Retail cannabis businesses must register with the city, town, or county in which the business is located. However, Minnesota law allows municipalities to limit retail cannabis businesses to “no fewer than one registrations for every 12,500 residents,” which, in many parts of Minnesota, effectively limits retail businesses to only one active registration per town.

In addition to municipal registrations, licensees may need to obtain conditional use permits (CUPs) to establish that their intended operation is permissible in the chosen location. This process may involve public hearings, city council meetings, and other close coordination with city planners and zoning officials.

Thus, in order to swiftly navigate a patchwork of varying municipal processes, licensees will require positive, collaborative relationships with municipal governments to understand and navigate any hurdles posed by local ordinances and state regulations. The attorneys at Winthrop & Weinstine, P.A. understand the complex intersection of real estate, regulation, and municipal government relations, and are prepared to guide preliminary licensees through the process of becoming licensed cannabis businesses—from site selection to business opening and beyond.

On May 29, 2025, the U.S. Court of International Trade (CIT) ruled that the tariffs imposed by President Trump under the International Emergency Economic Powers Act (IEEPA) exceeded the statutory authority granted to the executive branch. The court found that trade imbalances and related economic concerns do not constitute the “unusual and extraordinary threat” required to justify use of IEEPA, rendering the tariffs unlawful.

However, the U.S. Court of Appeals for the Federal Circuit has issued a stay, allowing the tariffs to remain in effect while an appeal to the CIT ruling proceeds. The next key event is a hearing scheduled for June 5, 2025, at which the court will consider arguments related to the stay and the merits of the appeal.

Strategic Priorities for General Counsel

1. Prepare for Potential Duty Recovery
   Ensure your company has preserved documentation of all tariff payments on covered imports. If the CIT’s ruling is ultimately upheld, companies could be eligible for significant refunds, but only if their records are in order and claims are timely filed.
2. Evaluate Contract Exposure and Supply Chain Strategy
   Review procurement and manufacturing agreements that may be impacted by tariff relief. Now would be a good time to reassess supplier diversification, pricing structures, and risk allocation provisions in anticipation of future shifts in trade policy.
3. Monitor Legislative Action to Curb Executive Tariff Authority
   The Trade Review Act of 2025, introduced by Senators Maria Cantwell (D-WA) and Chuck Grassley (R-IA), seeks to limit presidential tariff powers by requiring congressional approval for tariffs lasting beyond 60 days and requiring the President to notify Congress within 48 hours prior to enacting such tariffs. If enacted, this legislation could create a more stable policy environment, but law departments should track its progress closely and tailor response plans accordingly.
4. Advise Executive Leadership on Scenarios and Implications
   General Counsel should brief executive teams on the potential business impacts of both outcomes (continued tariffs or a court-ordered rollback). Consider preparing internal memoranda, board updates, or public disclosure language as appropriate.
5. Engage Outside Trade Counsel Strategically
   Trade specialists can help preserve refund rights, evaluate compliance exposure, and guide tactical responses depending on how the appeal unfolds. Proactive engagement is especially critical if your company is a high-volume importer.

If you have any questions or would like to assess how these developments may impact your business, evaluate refund opportunities, or develop a customized trade compliance strategy, please feel free to reach out to any member of our Corporate team.

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.

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!

Budget Status Summary

With the end of the 2025 legislative session fast approaching, legislators are working to approve the omnibus finance bills necessary to implement a FY 2026-2027 Biennial Budget. Legislative leaders and the Governor continue to work behind closed doors on global targets with rumors swirling that a deal is within grasp. However, as you can see from the chart below, the House and the Senate have yet to pass a number of major finance bills as of this writing (May 9).

Non-Controversial House Tax Bill

With the House tied at 67-67 between Republicans and DFLers, it should come as no surprise that the House Tax Committee this week passed a non-controversial Omnibus Tax Bill. The bill is a collection of no- or low-cost provisions and policy tweaks across tax types advocated for by various stakeholders and interest groups. Working with only a $40 million target for FY 2026-2027, the Tax Committee’s options were limited.

Senate Tax Bill Includes Revenue Raisers

While the House pieced together a bill that could pass a tied chamber, the Senate used a higher budget target to assemble a bill that raised new revenue, combined with cuts to certain tax spending. The Senate bill raises $317 million in general fund revenue and includes $48 million in reductions to aids, credits, and other expenditures to equal a $365 million budget target. The main sources of revenue include a new social media excise tax, an increase in the net investment income tax rate, and a lowering of the net operating loss deduction limit. The Senate cuts Local Government Aid, County Aid, the Film Credit, and the Sustainable Forest Incentive Payment Program.

Changes to Employer Mandates in Play

Changes to employer mandates are part of the negotiations for global budget targets. Modifying employer mandates, which passed during the DFL trifecta’s majority in 2023 and 2024, has been a priority for the business community and Republicans this legislative session. While Republican leaders are attempting to negotiate a more workable definition of “family” under the new paid family leave law, a bipartisan group of Senators this week passed off the Senate Floor key changes to the new earned sick and safe time (ESST) law. The Senate Bill, which still must pass the House, exempts farms with five or fewer employees from the mandate along with all businesses with less than four employees.

Senate Releases Bonding Framework

The Senate Capitol Investment Committee on Thursday held a hearing on a $1.35 billion Bonding Bill. The proposal, released as a spreadsheet, primarily included initiatives from the Walz Administration along with the University of Minnesota and the MNSCU systems. The proposal did include a $459 million placeholder for local projects but it did not name the projects.

As global trade tensions escalate following the Trump administration’s proposed sweeping tariffs on imports, public companies face renewed pressure to ensure that securities disclosures adequately capture evolving risks. The unpredictability of these developments, combined with their potentially material impact, requires careful evaluation of disclosure practices — particularly in the risk factors and forward-looking statements sections in their quarterly and annual reports.

Although many calendar year issuers updated their Form 10-Ks to address tariff concerns earlier this year, the scope and detail of the administration’s tariff plans have sharpened since then.  Companies directly exposed to global supply chains or importing significant product volumes should assess whether subsequent quarterly reports on Form 10-Q merit further updates. This includes not only risk factors disclosures, but also disclosures in the Management’s Discussion and Analysis (MD&A) section, where known trends and uncertainties must be discussed.

Private companies planning initial public offerings or public companies contemplating equity financing issuances should anticipate similar challenges, as registration statements will be scrutinized for sufficient disclosure regarding tariff exposure and the potential impact on the results of operations and financial position. General Counsel and Investor Relations teams should also prepare for heightened investor and analyst focus on tariffs during earnings calls, which may demand careful messaging to avoid misstatements and mitigate litigation risks.

While the SEC has not issued specific guidance on tariff-related disclosure to date, prior guidance on recent macroeconomic events, including guidance on COVID-19 and Russia’s invasion of Ukraine, have stressed the importance of reliance on robust disclosure controls and candid communication about all relevant risks, both actual and potential. Companies are well-advised to avoid innovating or minimizing these risks and instead adhere to established disclosure frameworks designed for volatile and uncertain conditions.

Below is a “mini-checklist” that General Counsel and CFOs can use to begin thinking about how to frame risk exposure to tariffs in their upcoming SEC filings:

• Risk Factors:
  • Assess Material Changes: How have tariffs impacted your existing risk factors?  If there are material changes to any of the existing disclosures, revise them to reflect the new post-tariff commercial landscape.
  • Avoid Hypothetical Language: Have tariffs already impacted the company?  If so, frame your disclosures around actual, materialized events rather than potential risks.
  • Tailor Disclosures: Ensure risk factors are specific to the company’s circumstances, detailing how tariffs affect operations, supply chains, or financial performance.
  • Consider Indirect Impact: Other than direct risk exposure, what types of indirect or “second-level” impact could tariffs have on the company’s operations, employees, assets, or other investments in the affected countries?
  • Don’t Forget About Governance: Separate and apart from financial disclosures, how might new and future tariff policies impact governance and management processes?  Has the board’s role in risk oversight changed? Have new committees of the board of directors been formed? Have new management positions been created and, if so, how might that impact your exposure to key employee retention risk?
• Management’s Discussion and Analysis (MD&A):
  • Discuss Known Trends: Address how tariffs have impacted or are expected to impact the company’s financial condition, results of operations, and cash flows.
  • Operational Adjustments: What changes have been implemented in sourcing, manufacturing, or pricing strategies in response to tariffs?
  • Forward-Looking Information: What are management’s expectations regarding how tariffs will affect future performance, including potential mitigation strategies?
• Financial Statements:
  • Evaluate Accounting Implications: Consider whether tariffs have led to impairments, changes in inventory valuation, or other accounting adjustments that should be reflected in the financial statements.
  • Subsequent Events: Determine if tariff-related events occurring after the balance sheet date require disclosure as subsequent events.
• Earnings Releases and Calls:
  • Consistent Messaging: Ensure that public statements about the impact of tariffs are consistent with prior disclosures in SEC filings to avoid misleading investors.
  • Cautionary Language: Use appropriate cautionary statements when discussing forward-looking information related to tariffs.  How should your safe harbor language in the forward-looking statements disclaimer be updated to reflect tariff-related risks?  To the extent possible, ensure consistency in these disclaimers across previously filed 10-Qs, 10-Ks, and investor presentations.

We are assisting our clients across industries to evaluate disclosure adequacy, develop risk disclosure language, and prepare for stakeholder communications. Feel free to reach out to us if you need help developing customized, tailored disclosures for your SEC reports.

State of Affairs

With the constitutionally-mandated end of session just over two weeks away (Monday, May 19), much work remains to be done in order to pass a two-year budget. The first conference committee appointments have just been made, but no conference committees have even had an opportunity to schedule a meeting yet, and several bills have not yet passed off both floors. Further, a global budget agreement has yet to be made between the Governor and leaders from the House and Senate. Until that happens, conferees won’t be able to make final decisions on their budgets. Tax and bonding bills remain elusive, with neither body releasing one as of today. If the legislature fails to pass a complete budget by Midnight on May 19, a special session will have to be called to complete the work. Minnesota’s current budget expires on June 30, and if there is no budget in place at that time, Minnesota will face a government shutdown. There is still a path to avoid a special session, but time is starting to run short.

Education and Workforce Bills Highlight Difficulties

As the tied House of Representatives has passed most budget bills, many committee co-chairs have acknowledged that the bill would have looked very differently if left to their own devices, however the co-chairs were able to work together effectively to pass a bipartisan bill. Despite this cohesion, some bills have stumbled. After passing out of both the Education and Ways and Means committees, DFL members of the Rules Committee initially refused to calendar the education omnibus bill earlier this week, explaining that their caucus needed more time. The bill has since been calendared (it is scheduled for the floor on Monday), but it serves as a good reminder that a tied House can prove difficult to navigate. Likewise, after only being released last night, the House Workforce and Labor Omnibus bill was pulled from today’s Ways and Means agenda with no explanation or timeline for future action.

Earned Safe & Sick Time Changes

A bipartisan bill to make modest changes to Minnesota’s new Earned Safe and Sick Time (ESST) law has made its way to the Senate floor. S.F. 2300, authored by Sen. Judy Seeberger (DFL-Afton), would, among other minor changes, make adjustments to the effect on employers who offer a more generous leave policy. A key provision to limit the application of the law on small businesses of a certain size was removed at the last minute in the Rules Committee. The law currently affects all businesses with more than one employee, and the Seeberger bill would not change that.

Heintzeman Wins Special Election

Republican Keri Heintzeman of Nisswa won the Tuesday, April 29 Special Election for Minnesota Senate District 6 with 60.27% of the vote. In this strongly Republican-leaning district, she easily defeated DFLer Denise Slipy, who received 39.59%. The special election was prompted by the resignation of former Republican Senator Justin Eichorn, who stepped down in March following his arrest in a Federal sting operation related to the attempted solicitation of a minor. Senate District 6 encompasses parts of Cass, Crow Wing, and Itasca counties, including cities such as Brainerd, Grand Rapids and Nisswa.

Craig Jumps into U.S. Senate Race

Democratic U.S. Representative Angie Craig announced on Tuesday that she intends to run for the U.S. Senate Seat being vacated in 2026 by incumbent Democratic Senator Tina Smith. Craig joins Lieutenant Governor Peggy Flanagan and former State Senate Minority Leader Melisa Lopez Franzen in vying for the DFL endorsement. Craig’s run could open up a competitive race for her 2nd Congressional District seat. Former DFL State Senator Matt Little has already announced his candidacy and State Senator Matt Klein (DFL-Mendota Heights) is expected to announce his candidacy in the next few weeks. Former Minneapolis DFL Vice Chair Mike Norton has also said he plans to run for Craig’s seat. On the Republican side, Craig’s two-time Republican opponent Tyler Kistner is expected to announce that he will run for the seat. Several other prominent names, including current legislators, are also rumored to be considering a run.