Session Ends; Special Session Ahead
While the Minnesota legislature may have adjourned the 2025 legislative session at midnight on May 19, 2025, most legislators remained around the State Capitol last week in anticipation of a possible special legislative session. At the time of adjournment, nine of the 16 major budget bills remained subject of negotiations as committee chairs struggled to work through the details and navigate outstanding political priorities. Many of those negotiations continued over the Memorial Day weekend as legislative leaders are eager to finalize a budget as soon as possible.
House and Senate Leaders Give Update on Special Session
Late last week, legislative leaders provided an update on the status of negotiations including the ongoing use of “working groups” to negotiate final details. Senate Majority Leader Sen. Erin Murphy (DFL-St. Paul) noted that the earliest a special session could be held is later this week, but ultimately said it is left up to Gov. Walz to determine the exact date. House DFL Floor Leader, Rep. Jaime Long (DFL-Minneapolis) noted just this morning that Friday, May 31st was still a possibility though legislators might need until early the week of June 3rd.
All parties involved believe the special session can be held prior to the end of the state’s fiscal year on June 30th. A complete state budget must be passed and signed into law by that date in order to avoid a partial state government shutdown. Legislators are also keen to finish quickly as state agencies will need to begin the process of providing layoff notice if a biennial budget is not in place by June 1st.
During the leadership press conferences last week the question was asked if the governor would sign everything the legislature sends him even if it is not in the form of the agreed upon “global deal” that was signed off on at the end of session. Some bills may reach his desk as standalone bills that are part of the overall budget. Those bills may be more controversial parts of the budget that legislators do not want to vote for but may want to vote for the overall budget. House leader Demuth stated that, regardless of how the budget is presented to the governor, as long as it’s under the agreement, he said he will sign it.
Budget Working Groups
Several of the budget areas have begun working both behind the scenes and in public to wrap up their budget bills via “working groups,” which are constituted of the members that made up the conference committees on major budget bills at the end of the regular session. Many of these meetings have been private, behind the scenes negotiations to iron out the most controversial issues. Public meetings have been held to reveal the latest offers and discuss agreements on parts of language and budget. This process will continue until all budget bills are agreed up on.
In a recent press conference, Senate Majority Leader Murphy gave a brief update on where things were at late last week. She mentioned that all working groups have made some progress, and several are very close to wrapping up. She also noted that discussion of the omnibus health finance bill, omnibus human services finance bill, the omnibus E-12 education finance bill, and the omnibus tax bill all continue to have major sticking points.
There were some questions as to where the public will be able to find the language approved by the working groups. The House of Representatives added a website for this specific information, and it can be found here.
OIG Fraud Bill Likely Dead
House Speaker Emerita Melissa Hortman (DFL-Brooklyn Center) stated that legislative proposal to create a new, statewide Office of the Inspector General (OIG) will likely not be brought for a vote in the House of Representatives during a special legislative session. The proposal, S.F. 856 (Gustafson) / H.F. 1338 (Norris) would establish a new state office charged with protecting public money in Minnesota and conducting various fraud and abuse investigations. Fiscal estimates show that with the reallocation of existing program integrity resources, the proposal would cost approximately$18 million for the biennium.
The Senate took up and passed S.F. 856 by a vote of 60-7 in early May. While the bill had broad bipartisan support, some Democrats continued to raise concerns about how the proposal may potentially conflict with federal Medicaid law and even jeopardize federal funding. The proposal has been a top priority of Republicans in both the Senate and House of Representatives with House Republicans even going so far as attempting to take the bill up in the final hours of the regular session.
Federal Budget Causes Concern for Some Lawmakers
While generally focused on the biennial state budget, many legislators are keeping an eye on the budget reconciliation bill working its way through the U.S. Congress. However, with details difficult to come by and the bill a long way from being signed into law, most legislators have noted it is too early to anticipate the impact on Minnesota and that a special session in the fall may be needed to address the fallout. Most significantly, many legislators have raised concerns that potential changes to individual eligibility for Medicaid (referred to as Medical Assistance in Minnesota), could leave thousands of Minnesotans without access to health care.
