Minnesota Special Session Adjourns – Sine Die
Hill Capitol Strategies
June 10, 2025
Early this morning, the Minnesota Senate adjourned, ended the Special Session and concluded their work on the budget for the upcoming 2026-2027 biennium. The roughly $66 billion budget represents a reduction in the budget passed in 2023 and addresses nearly half of the projected $5 billion structural deficit in the 2028-2029 budget. Interestingly, it took three additional weeks to pass the comprehensive budget agreement, roughly the same amount of time members of the House DFL boycotted and failed to appear in St. Paul at the start of the legislative session.
While the budget proposal does make cuts, it also increases revenues by raising the tax on the yet to be opened cannabis market from 10% to 15% and cancels a sales tax exemption on energy purchased by data centers. The budget also increases numerous fees on businesses and individuals. While there are cuts to several programs, according to information provided by the Minnesota Senate GOP the budget also provides nearly $770 million in increased revenue to state agencies.
The original agreement between legislative leaders and the Governor to pass the outstanding 15 budget and policy related bills in less than 24-hours seemed like an impossible task. In the end the House took just over 12 hours and adjourned around 10:30 pm, the Senate took a bit longer and completed their work around 2am. The House started the day by debating the proposal to eliminate state supported healthcare coverage for undocumented adults. That debate was lengthy and suggested the time allotted for passing the collection of budget bills may fall woefully short. The bill passed the House on a vote of 68-65, with DFL Speaker-Emeritus Hortman providing the final vote necessary to pass the bill. In the Senate, the debate was also long, however unlike in the House where Rep. Hortman was the lone DFL vote for the bill, Majority Leader Murphy was joined by DFL Senators Rest, Kupec and Hauschild and the bill passed 37-30. Both Leaders Hortman and Murphy called the vote gut wrenching but acknowledged they had agreed to the provision as part of the session ending negotiations. The Senate votes by additional members of the DFL Senate show a strong commitment by Senator Rest to support her leader and the agreements the leader had to make. The votes by Hauschild and Kupec were more likely related to their political futures and the recognition of the challenges they will be facing in the 2026 election. Most of the remaining budget bills passed both bodies with bi-partisan support.
Legislators and the Administration will now begin implementing the new budget, while also closely monitoring what happens in Washington. It seems highly likely the legislature will need to return in the fall to address any impacts federal changes have on the state budget, to bring the budget back into balance and change existing laws to match any new federal requirements.
In other news:
- Governor Walz will be traveling to Washington on Thursday to testify before the House Oversight Committee with the Governors of Illinois and New York. The hearing will be focused on states and cities with Sanctuary Policies regarding immigration enforcement.
- Next week, Senator Mitchell’s burglary trial is set to begin in Detroit Lakes. During yesterday’s Special Session, Senator Mitchell left the floor debate to participate remotely in the final pre-trial hearing.
In the end, the 2025 Session will certainly be one for the record books. It is hard to keep track of all the drama that took place in St. Paul this year. Here are just a few of the highlights.
- The Senate started with a tie following the death of Senator Kari Dziedzic
- The 2024 Elections resulted with a tie in the House, until one newly elected member of the DFL was found to not live in the district he was elected from, resulting in a short-term GOP Majority.
- The DFL Boycotting for nearly three-weeks the start of the 2025 Session.
- The House GOP winning a decision by the Supreme Court regarding the timing of Governor Walz’s call for the House Special Election, delaying that election by months.
- The House DFL winning a decision by the Minnesota Supreme Court clarifying what constitutes a quorum and nullifying the GOP’s start of the 2025 Session.
- Numerous Special Elections in both bodies
- A member of the Minnesota Senate being arrested and charged with federal crimes related to the solicitation of a minor, and resigning his seat before being removed by a full vote of the Senate.
One additional highlight from the just completed Special Session involves are very own Buck Humphrey. Legislation adopted yesterday provides money to replace one of the two Minnesota statutes in Statuary Hall in the Nation’s Capital. A replica of a statue located on the grounds of the Minnesota Capitol of Buck’s grandfather, former U.S. Senator and Vice President Hubert Humphrey, will now also be in Statuary Hall. A recognition of not only his grandfather’s legacy of leadership, but also of the entire Humphrey Family. Join us in recognizing this tremendous honor.