Minnesota State CapWatch
Minnesota House of Representatives Officially tied 67-67
Last week, newly elected state Rep. David Gottfried (DFL-Shoreview), was sworn in as the 134th member of the Minnesota House of Representatives after comfortably winning a special election in House District 40B. Gottfried’s election now leaves the chamber evenly split at 67-67 and triggers a power sharing agreement reached by caucus leaders last month. With 68 votes needed to pass legislation, both caucuses have their work cut out if they hope to pass the state’s biennial budget before the legislative session ends in May.
With committee deadlines quickly approaching, committees in both chambers have seen their workload increase with long agendas and hearings extending into the evening. Legislators have until Friday, April 4th to have their proposals heard by all policy committees in each chamber. Additionally, finance committees have until Friday, April 11th to pass their respective budget bills.
Republican State Senator Resigns
Last Thursday, former state Sen. Justin Eichorn (R-Grand Rapids), resigned his position in the Minnesota Senate just hours before Republican leadership was expected to bring a motion to expel him. Having represented north central Minnesota since 2017, Eichorn resigned after being arrested and charged with soliciting a minor early last week by Bloomington Police.
Eichorn’s resignation means that the Senate DFL Caucus now holds a two-vote (34-32) majority in the Senate, but with 34 votes needed to pass legislation, the Senate DFL Caucus will still be operating with the narrowest of margins. There will be a special election in Senate District 6, the third special election since the start of the year, sometime just before the end of the legislative session.
Governor Walz Releases Revised Budget
Earlier this month, Minnesota Management and Budget (MMB) released its updated budget forecast which projected a $456 million surplus for fiscal years 2026 and 2027 (FY 26-27), a reduction of $160 million from the November forecast. Citing “shifting policies at the federal level,” MMB also forecasted an increase in the projected deficit for the FY 28-29 biennium with the shortfall growing from $5.1 billion to $6 billion.
Last Friday, Gov. Walz released his revised budget proposal to align with the updated budget forecast. The revised budget proposal cuts an additional $162 million from the FY 26-27 budget and $247 million from the FY 28-29 budget. Walz’s revised budget would make additional cuts to several state grants and programs, including funds for charter schools, payments to counties, and transit funding in Greater Minnesota. In total, Walz’s budget proposal would leave more than $2.3 billion on the bottom line in the current biennium to offset a portion of the $6 billion shortfall in the next biennium.
Health and Human Services Proposals at the Forefront This Week
While legislative committees heard a broad variety bills this week, there was a focus on several higher profile health and human services related proposals. Last Wednesday was dedicated to long term care advocacy at the Capitol with rallies in support of services for older Minnesotans. A bipartisan group of lawmakers also held a press conference to promote the Minnesotans with Disabilities Act, which is state legislation based off Section 504 of the federal Rehabilitation Act of 1973 and is intended to better protect the rights of those with disabilities. Sen. Erin Maye Quade (DFL-Apple Valley), Rep. Kim Hicks (DFL-Rochester), and Rep. Danny Nadeau (R-Rogers) are among the co-authors who support the upcoming legislation that would ensure those with a disability are not excluded from participating or be denied benefits from public or private groups that receive money from the state. It also requires businesses and groups to provide reasonable accommodations.
Last week, the newly formed House Fraud Prevention and State Agency Oversight Policy Committee spent time questioning leadership at the Minnesota Department of Human Services (DHS) on the fraud found within programs overseen by DHS in recent years. There is bipartisan concern over the number of high profile and large-scale cases brought by federal law enforcement and questions over DHS’ ability to oversee the billions of dollars it administers each year. The House Republicans, Senate Democrats, and Gov. Walz have all introduced and promoted different legislative proposals intended to strengthen state agency oversight of public dollars. Reconciling those three proposals will be a major undertaking in the final eight weeks of the legislative session.
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
Budget Reconciliation Timeline Pressures GOP
After a weeklong recess, lawmakers return to a busy three-week stretch. House Republicans are aiming to pass a major reconciliation bill to advance President Trump’s agenda by the end of May, while Senate Republicans continue to deliberate over key aspects of the House’s budget resolution.
Among the sticking points: whether to use a “current policy” baseline to make the 2017 tax cuts permanent without offsets, and how deep spending cuts should go. The Congressional Budget Office warns that extending the tax cuts without offsets would significantly increase debt levels over the next three decades. Meanwhile, the House has proposed a $4 trillion debt limit increase as part of the package, but timing for a final bill remains uncertain.
Supreme Court to Hear Major Redistricting Case
Today, the Supreme Court will hear arguments in a pair of cases concerning Louisiana’s congressional map and the role of race in redistricting. The state’s map has been redrawn multiple times after courts found violations of both the Voting Rights Act and the 14th Amendment.
Louisiana is now seeking a ruling that would bar federal courts from reviewing racial gerrymandering claims. Plaintiffs are arguing that strict scrutiny should apply to ensure compliance with the Constitution and the VRA. The decision could have broad implications for how states draw their congressional maps in the future.
Air Safety and Infrastructure on the Agenda
Congress is weighing air transportation improvements ahead of a Senate hearing on Thursday that will examine the January midair collision near the Capitol. Transportation Secretary Sean Duffy has called for the construction of a “brand new, state-of-the-art” air traffic control system and supports increased hiring of air traffic controllers.
While specifics of the funding request have not been released, lawmakers expect proposals to be included in the fiscal year 2026 budget submission. The hearing will also delve into findings from the National Transportation Safety Board’s preliminary report on the crash and the broader state of the nation’s aviation infrastructure.
