Minnesota State CapWatch
Third Deadline Quickly Approaching
With roughly six weeks left in the legislative session, legislators have until this Friday, April 11th, to pass all major omnibus budget bills out of their respective finance committees. That will likely mean extra committee hearings and evening meetings as members review, take testimony, offer amendments, and eventually vote on each budget bill. April 11th also marks the beginning of a ten-day Easter/Passover legislative break, with the legislature resuming its work at noon on April 21st. Legislators will return with only one month to negotiate a budget and pass all necessary legislation by the constitutionally mandated end of the legislative session on May 19th.
Finance Committee chairs now have budget targets, which is another key step toward forming omnibus finance bills. The House of Representatives released budget targets that were agreed upon by both GOP and DFL leaders, while the Senate’s budget targets were released by DFL leadership. The entire budget must be agreed upon by the House of Representatives, Senate and Gov. Tim Walz, which means that they will need to negotiate a “global target” as the process moves forward.
House Committee Approves Budget Resolution
An additional step in the budget process was completed last week when the House Ways and Means Committee approved a budget resolution that sets the amount of total net expenditures allowed, as well as the budget reserve and cash flow account totals. The budget resolution provides that no more than $66.62 billion in General Fund dollars can be spent for the FY 26-27 biennium throughout all finance divisions in the House of Representatives. The committees must work within this budget to develop the financial picture of Minnesota for the next two years.
The resolution also set the budget reserve account at $3.18 billion and the cash flow account at $350 million. The power-sharing agreement came into play during the negotiations for this framework, as both House Democrats and Republicans worked together to come to an agreement on the final numbers. That might bode well for the overall budget negation process in the House of Representatives, as this is a major step in setting the foundation of the process. Individual committees must work within the guidelines to develop their respective budgets.
Senate DFL Release Capital Investment Target
Last week the Senate Democrats held a press conference to introduce their capital investment proposal, with Sen. Ann Johnson Stewart (DFL-Minnetonka), Sen. Sandy Pappas (DFL-St. Paul) and Sen. Erin Murphy (DFL-St. Paul), announcing their desire to assemble an infrastructure package totaling $1.35 billion. In doing so, Senate Democrats stated their intention to invest the vast majority of those dollars in infrastructure to support clean drinking water, treated wastewater, roads and bridges, ports, airports, and public buildings.
SD 6 Primary Election Next Tuesday
The Minnesota Republican Party will hold a primary election on April 15th for the special election in SD 6, which is the district recently vacated by former Sen. Jason Eichorn (R-Grand Rapids) who resigned after being arrested and charged with soliciting a minor. The vacant seat has drawn significant interest in the local Republican party with a number of familiar names announcing candidacies. Former chair of the Minnesota Republican Party Jennifer Carnahan, Keri Heintzeman, the wife of State Representative Josh Heintzeman, and Josh Gazelka, the son of former Senate Majority Leader Paul Gazelka, are all seeking the seat.
A total of eight Republican candidates are currently vying to win the primary. On March 30th, the local DFL party endorsed their party chair, Denise Slipy, as the Democrat candidate and the three others in the race chose to abide by the endorsement.
Fraud Discussion Continues
A major focus of this session has been the discussion around fraud and the elimination of misused taxpayer dollars. Authored by committee co-chair Rep. Ginny Klevorn (DFL-Plymouth), the House’s omnibus state government finance bill seeks to address many of those issues. Committee members received an overview of the proposal in committee last week with notable provisions in the current version of the bill including:
Important Dates to Remember
April 11, 2025 Third Committee Deadline & Start of Easter/Passover Break
April 21, 2025 Legislature Resumes at 12:00 PM
April 23, 2025 Governor Walz State of the State
May 19, 2025 Constitutional Deadline to adjourn legislative session
Federal CapWatch
Tensions Over Tariffs
The administration continues to double down on its global trade strategy, despite concern. Financial markets have lost $6 trillion in value since Thursday. Lawmakers are considering legislative responses:
House GOP leaders remain aligned with the president’s strategy, urging patience and trust in Trump’s approach to reignite the domestic manufacturing base. Still, internal doubts are growing, especially as constituents and business leaders express concern.
Congressional Action on the Budget
This week, House Republicans aim to pass a joint House-Senate budget resolution—an essential first step for advancing the administration’s agenda. Leadership hopes to clear the resolution before the upcoming Easter-Passover recess. Key points:
Expect intense intra-GOP negotiations over the next 72 hours, as leaders work to secure the 217 votes needed to pass the resolution.
Fundraising Watch
House Majority Whip Tom Emmer reported a record-breaking $10 million raised in Q1—more than his total for all of 2023. He continues to strengthen his position as a major GOP fundraiser, having raised $42 million since taking on the role.
Looking Ahead
Expect continued volatility in markets and messaging as debates over tariffs, the budget, and trade policy dominate Washington. Key committee hearings and House floor votes this week will be critical in shaping the administration’s agenda moving forward.
