Minnesota State CapWatch
First and Second Legislative Deadlines Drawing Near
The legislature returns from a short break for the Eid holiday on Tuesday, with only three days until the first round of committee deadlines. This year, legislative leadership elected to combine two deadlines, customarily a week or two apart, and require that bills must be acted on by all policy committees in both chambers by the end of the day on April 4th. This will result in numerous late night committee hearings throughout the week. Finance committees are also working on putting together their budget bills, as the third committee deadline is the end of next week, April 11th.
While most legislators and committee chairs are working on passing legislation and putting their budgets together, legislative leadership continues to meet to determine budget details. The political end-of-session posturing has already kicked off with Republicans criticizing Gov. Tim Walz for his national townhall tour while Walz has citied multiple meetings with legislative leaders in recent weeks show he remains committed to negotiating a state budget before the legislature adjourns in May.
Budget Targets Released
Sen. Erin Murphy (DFL-St. Paul) and Senate DFL leaders released their preliminary budget targets in advance of the April 11th deadline to pass finance bills. Committee chairs have roughly two weeks to assemble their omnibus budget bills and pass them out of their respective committees. The Senate budget targets call for a reduction in state General Fund spending of $746 million in FY 26-27 and $1.7 billion in FY 28-29. These cuts are in response to the state’s February budget forecast that showed a substantial structural deficit in the FY 28-29. Each committee has a specific target to meet, with many of them requiring a reduction to their budgets. For specific details, click here.
Leaders in the House of Representatives followed suit and released a bipartisan budget framework last week as well. The House proposal would call for a $1.16 billion General Fund reduction in FY 26-27 and a $2.6 billion General Fund reduction in FY 28-29. For specific details, click here. Both bodies have their work cut out for them to address the looming structural budget deficit.
SD 6 Special Election Set
Last week, Gov. Walz called a special election for Senate District 6, which is the district recently vacated by Justin Eichorn who resigned after being arrested and charged with soliciting a minor. The special election will be held on Tuesday, April 29, 2025. A primary will likely be held on Tuesday, April 15, 2025 as seven Republicans and four Democrat candidates have already announced their plans to seek the seat. The Republican primary sees some familiar names including, 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, who have all announced their intention to run.
State Workers Ordered to Return to Office
Last week, Gov. Walz surprised many, including public employee union leadership, when he announced that all state workers would be required to return to the office at least 50 percent of the week as of June 1, 2025. Those who live more than 75 miles from their place of work are exempt. Walz said in a recent interview, “Having more state employees in the office means that collaboration can happen more quickly, and state agencies can build strong organizational cultures more easily.” However, union leaders representing many state employees are unhappy and have said that Walz never consulted or engaged with them in any way before making the decision. While Walz has not specifically labeled this as a reason, there is a growing concern about the future and viability of downtown St. Paul. A return of hundreds of employees each day could bolster the economic resiliency of the downtown area.
House Fraud Prevention Committee Continues its Work
Members of the Fraud Prevention and State Oversight Committee, joined by the co-chairs on the House Ways and Means Committee, sent a letter to colleagues, specifically noting those on the various budget committees, urging them to change the way the legislature issues state grants. In short, the letter urged legislators to refrain from earmarking funds directly to non-profits, but instead, use a competitive grant process. The Office of the Legislative Auditor (OLA) has historically suggested that state grants be handed out through a competitive process, and not appropriated directly to the grantee. This would require more oversight and tracking of each grant. This bipartisan letter is just one of many ways the Fraud Prevention and State Oversight committee is looking to add accountability and cost saving measures surrounding state funds.
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
Congressional Outlook
Both the House and Senate are in session this week with a full slate of legislative activity, committee hearings, and key developments tied to the Trump administration’s policy agenda. Issues at the forefront include military nominations, the FY25 budget reconciliation process, tariffs, infrastructure, and health care program funding.
Budget and Reconciliation Strategy
Trade and Tariffs
On Wednesday, President Trump is expected to announce sweeping new tariffs, targeting countries such as Canada, Mexico, Venezuela, and those importing Venezuelan oil, along with automobiles manufactured outside the U.S. While administration officials are touting the revenue potential—claiming up to $700 billion per year—analysts and lawmakers are questioning the feasibility of these projections. The tariff rollout is likely to dominate market discussions and political debates this week.
Infrastructure Priorities
Transportation Secretary Sean Duffy will testify Wednesday before the Senate Environment and Public Works Committee, where he will detail the administration’s approach to the next surface transportation reauthorization. Expect a shift away from climate and equity-focused programs funded by the 2021 bipartisan infrastructure law. Duffy is expected to advocate for a “return to basics,” emphasizing highway construction, reduced federal mandates, and increased state flexibility.
Election Watch
Tuesday’s races in Florida’s 6th District and the Wisconsin Supreme Court will serve as political barometers for both parties. In Florida, Republican Randy Fine is facing a surprisingly competitive race against Democrat Josh Weil. In Wisconsin, the outcome of the state Supreme Court race will determine the ideological balance of the court — with major implications for redistricting, voting rights, and reproductive policy.
Democrats Hit the Road
Sen. Chris Murphy (D-CT) and Rep. Maxwell Frost (D-FL) are touring GOP districts to counter the Trump agenda and highlight proposed GOP cuts to Medicaid and the Affordable Care Act. Their effort mirrors the successful Democratic messaging push that derailed ACA repeal in 2017. Other prominent Democrats, including Bernie Sanders and Alexandria Ocasio-Cortez, are leading parallel public engagement campaigns.
