Minnesota State CapWatch
Special Election Brings Power Sharing Agreement to House of Representatives
For the second time this year, the balance of power in the Minnesota legislature was in the hands of a single district as voters went to the polls for a special election. On March 11th, the voters in House District 40B overwhelmingly supported Democrat David Gottfried over Republican Paul Wikstrom, electing him as the 134th member of the Minnesota House of Representatives by a 70%-30% margin.
With the House of Representatives now evenly divided at 67-67, the “power sharing” agreement announced by legislative leaders last month will officially kick in this week. Speaker of the House Rep. Lisa Demuth (R-Cold Spring) will remain the chamber’s presiding officer, but all committees will have an even political makeup and co-chairs from each party will alternate as chair of their respective committee. Bipartisan agreement will be necessary going forward as the House of Representatives will need 68 votes to pass the biennial state budget before the constitutionally mandated end of the legislative session in May.
Housing Related Bills Moving Through Committee
Housing, or lack of, has been an issue at the forefront in recent years, and this year is no different. In the House of Representatives, Rep. Spencer Igo (R-Wabana Township) and Rep. Michael Howard (DFL-Richfield) have co-authored H.F. 1987, known as the “Minnesota Starter Home Act.” The legislation would place limitations on certain local zoning ordinances and establish development agreements to allow for smaller homes to be built at a higher density. H.F. 1987 passed the House Housing Finance and Policy Committee on a voice vote and was re-referred to the House Elections, Finance, and Government Operations Committee. The bill’s Senate companion, S.F. 2229, authored by Sen. Lindsey Port (DFL-Burnsville) and Sen. Jordan Rasmusson (R-Fergus Falls) also received its first hearing and continues to move through the committee process.
Concurrently, Rep. Larry Kraft (DFL-St. Louis Park) also introduced legislation to address the “missing middle,” a term referring to mid-price homes that developers argue are difficult to build in the current regulatory climate. H.F. 2140 would require cities to allow triplexes, fourplexes or other housing options that would result in higher density neighborhoods in a designated percentage of their residential zones. This would seek to increase density and allow more homes per lot. H.F. 2140 passed the House Housing Finance and Policy Committee on a voice vote and was re-referred to the House Elections Finance and Government Operations Committee. The bill’s Senate companion, S.F. 2231, authored by Sen. Liz Boldon (DFL-Rochester) and Sen. Rich Draheim (R-Madison Lake) was introduced and referred to the Housing and Homelessness Prevention Committee where it awaits a hearing.
Legislative Committees Begin Budget Discussions
Even without budget targets in hand, the House Agriculture Committee, led by Rep. Paul Anderson (R-Starbuck), unveiled a committee budget bill last week. Democrats were concerned with the timing of the bill and the lack of bipartisan work to develop the language. Rep. Anderson argued that the timing was right as he believes the legislature is behind on their work due to the inaction during the first four weeks of the legislative session.
Rep. Anderson’s proposal, H.F. 1704, is the first omnibus finance bill released during the 2025 legislative session. The proposal would spend $168.9 million from the General Fund for the Department of Agriculture for the FY 26-27 biennium and fund several other agencies and programs under the purview of the committee, including the Office of Broadband Development. The bill appropriates nearly $8 million more than what was included in Gov. Walz’s budget recommendation. The three largest funding proposals are $13.5 million to the Board of Animal Health, $8.8 million to the Agriculture Utilization Research Institute (AURI), and $2 million for Broadband development. As budget targets have not yet been agreed upon, the total funding number in this bill is likely to change.
Important Dates to Remember
March 29, 2025 Eid break Begins
April 1, 2025 Legislature Resumes
April 4, 2025 First Committee Deadline (the date by which bills must be acted upon by all policy committees in one chamber) and Second Committee Deadline (the date by which bills must be acted upon by all policy committees in the second chamber)
April 11, 2025 Third Committee Deadline & Start of Easter/Passover Break
April 21, 2025 Legislature Resumes at 12:00 PM
May 19, 2025 Constitutional Deadline to adjourn legislative session
Federal CapWatch
Federal Spending Bill Signed into Law
President Donald Trump signed the fiscal 2025 spending bill on Saturday, preventing a partial government shutdown that would have taken effect on Monday as federal agencies reopened.
The six-month continuing resolution, funding the government through September 30, cleared the Senate on Friday after enough Democrats joined Republicans to end debate, despite pressure from progressives. Although the deadline for Trump’s signature was technically midnight, shutdown procedures typically do not begin until the workweek starts.
The Senate passed the measure after a 62-38 cloture vote, with nine Democrats and one independent voting to advance the bill. The final passage was 54-46, with some Democrats who supported cloture ultimately opposing the bill, as their votes were not needed for passage.
Democrats had pushed for a short-term continuing resolution through April 11 to allow more time for negotiations on full-year appropriations, but that proposal lacked sufficient Republican support. With the House out of session until March 24, the GOP-led measure became the only viable option to prevent a shutdown.
As part of the agreement, Senate leaders committed to bringing a separate bill to the floor to address a major omission in the CR. The House-drafted measure did not include a provision allowing the District of Columbia to spend at its current budget levels, forcing a $1.1 billion cut for the remainder of the fiscal year. The Senate quickly passed a fix for this issue, but it remains unclear if or when House Republicans will bring it up for a vote.
Looking Ahead
With fiscal 2025 funding finalized; lawmakers are turning their attention to the fiscal 2026 budget process. Senate leadership has emphasized a return to regular order for appropriations, allowing for floor debate and amendments. Trump’s budget request is expected next month, though it will be delayed by about two months from the usual schedule.
This CR marks a rare instance where Congress has resorted to a full-year stopgap, maintaining most funding levels from the previous year. While the measure includes flexibility for the Pentagon and some non-defense programs, Republicans scrapped billions in earmarked funds as a cost-cutting measure.
As Congress moves forward, we will continue to monitor developments on fiscal 2026 appropriations and other key policy issues.
