Week 10 – Minnesota Lawmakers Race to Session Finish

With just three weeks remaining in the Minnesota legislative session, lawmakers are prioritizing a range of critical issues that must be resolved before adjournment. At the top of the “must have” list is ensuring program integrity and aligning state law with the federal “One Big, Beautiful Bill” mandates—an essential step for Minnesota to secure its Medicaid funding without incurring penalties. Some aspects of tax conformity, particularly those affecting certain aspects of Minnesota’s corporate taxation, have also become pivotal as the constitutionality of current law could be called into question.

Another pressing concern is the ongoing budget shortfall at Hennepin County Medical Center. Legislative leaders recognize the urgency of addressing this matter to maintain essential health services in the region. With the bonds for Target Field set to be paid off soon, some lawmakers are looking at the Hennepin County sales tax that was dedicated to Target Field debt service to be increased and repurposed for HCMC. Yet some Hennepin County lawmakers want to see more statewide funding support for HCMC as it serves the state as a critical access hospital.

Additionally, a bonding bill is nearing “must have” status for 2026, though it’s important to note that the legislature has, in recent years, ended sessions without passing such bills. Governor Walz is calling for a $900M bonding bill; DFL legislators are calling for a $1.2B bonding bill. House GOP leaders haven’t specified a total target for a bonding bill.

Alongside these top priorities, lawmakers are considering a variety of “would like to” items. These include further tax conformity measures, such as adjustments related to overtime pay and tip credits. In the education arena, proposals for increased investments in safe schools and compensatory aid have gained a notable level of bipartisan support. However, with a two-year operating budget already in place, these education initiatives are considered optional additions rather than essential budget items.

As the session progresses, MREA will continue to advocate for Compensatory Aid and fund transfer authority for the several schools asking for it. We encourage members to stay engaged and reach out to their legislators to share their perspectives on these important issues. You can expect an action alert from MREA on these matters in the days to come.