Minnesota Minute: We Have a Global Deal

We Have a Global Deal

The 2026 Minnesota legislative session is entering its final stretch, with lawmakers facing a midnight Sunday, May 17, deadline to pass remaining legislation. Late Wednesday night, legislative leaders and Gov. Tim Walz unveiled a bipartisan budget agreement adding $660 million in spending this fiscal year, which ends in June 2027, and locking in many of the session’s biggest priorities.

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The agreement includes $705 million in hospital stabilization funding from state cash reserves. Of that amount, $205 million will go this year to Hennepin County Medical Center (HCMC), the Downtown Minneapolis Level I trauma center that serves patients statewide and faced possible closure without financial support. The deal also provides up to $500 million in ongoing funding for HCMC through 2031.

Lawmakers also shared there will be a $1.2 billion bonding bill that is expected to include $10 million for renovations at St. Paul’s Grand Casino Arena and $40 million for the Roy Wilkins Auditorium.

Heading into the session, leaders anticipated bipartisan support for increased funding tied to school safety, Capitol security, and protections for legislators. Those priorities followed the assassination of Speaker Emerita Melissa Hortman, the attempted assassination of Senator Hoffman, and the Annunciation school shooting last summer.

The agreement allocates about $20 million for school safety initiatives, including an anonymous threat reporting system and behavioral health funding. It also sets aside additional money for Capitol and legislator security, along with funding for memorials honoring the late Speaker Emerita Melissa Hortman.

Other key provisions include:

• $125 million for expanded property tax refunds
• $75 million for county IT upgrades
• $250 million for a one-time reduction in vehicle tab fees next year

Leader Responses

The agreement was signed by every caucus leader except Senate GOP Leader Mark Johnson. Gov. Walz, Speaker Lisa Demuth, House DFL Leader Zack Stephenson, and Senate DFL Leader Erin Murphy each praised the deal in public statements.

• Walz: “We are keeping a balanced budget, making targeted reductions, and focusing every dollar on core priorities: fiscal sustainability, critical infrastructure, and the health and wellbeing of our communities.”
• Demuth: “Our caucus has fought all session long for car tab relief, property tax cuts, and meaningful anti-fraud measures. This budget delivers that, along with help for rural and critical access hospitals.”
• Stephenson: “While this certainly doesn’t include everything House DFLers wanted, it is a strong step forward on important issues while working in divided government. Providing certainty and stability for HCMC was a necessity.”
• Murphy: “This was a hard-fought negotiation, and I’m proud to say we defended many of our most essential Senate priorities, including property tax relief for homeowners and direct support to counties.”

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