CapWatch:
September 8, 2025

Minnesota State CapWatch

Election Related News Front and Center

Having served since 2019, Minnesota State Auditor Julie Blaha announced late last week that she will not be seeking a third term. Shortly after Blaha’s announcement, State Rep. Dan Wolgamott (DFL-St. Cloud) announced he will not seek re-election to the Minnesota House of Representatives but will run to fill Blaha’s position as State Auditor. Wolgamott has represented District 14B since 2018 and is chair of the House Higher Education Committee. In his most recent election in 2024, Wolgamott won his district by fewer than 200 votes.

Ben Schierer, a business owner and former Mayor of Fergus Falls, Minnesota, also announced his candidacy for State Auditor. He describes himself as a rural progressive and prides himself on being elected as Mayor twice in one of the “reddest parts of the state.”

Minneapolis DFL Appeals Revocation of Fateh’s Endorsement

Last month the Minnesota Democratic-Farmer-Labor Party’s (“DFL”) Constitution, Rules, and Bylaws Committee voted to revoke the Minneapolis DFL’s endorsement of Sen. Omar Fateh (DFL-Minneapolis) for Mayor of Minneapolis. Two-term Mayor Jacob Frey challenged the endorsement, citing issues with the electronic voting system and the security of the delegate lists. The Minneapolis DFL has requested a hearing with the DFL’s State Executive Committee to present their appeal.

Minnesota House Republicans Release School Safety Package

With news reports swirling that Gov. Tim Walz (DFL) is considering calling a special legislative session this autumn to address gun control, the Minnesota House Republican Caucus released a legislative proposal that they believe would address school safety. The proposal seeks to enhance safety and security measures at public and private school campuses across the state, boost funding and capacity for inpatient mental health treatment, and increase penalties for straw purchasers and repeat gun criminals. With the legislature split, a special session would require bipartisan agreement to pass any bills. Only the governor can call a special session, but it is usually called after an agreement is made between the governor and legislature.

Sen. Miller Will Not Seek Re-Election

This morning, former Senate Majority Leader Sen. Jeremy Miller (R-Winona) announced that he will not see re-election. Sen. Miller was first elected to the Minnesota Senate in 2010 at the age of 26, making him the second youngest to be elected to the Minnesota Senate. Miller served as President of the Senate from 2019-2020 and as Senate Majority Leader from September 2021 through the 2022 election. In announcing his decision, Miller cited the need to spend time with this wife, three young sons, and family business as his main reasons for not running again.

Federal CapWatch

FY2026 Funding Outlook

Congress is in session this week and next, then out the week of Sept. 22 for Rosh Hashanah, returning directly into deadline week. The compressed schedule leaves limited time for floor action on regular appropriations. Only a handful of individual appropriations bills have reached the floor in either chamber; the House and Senate remain apart on topline levels. Any endgame will require direct engagement among the Administration and the “Big Four” to align on scope and offsets.

What a Continuing Resolution (CR) Could Look Like

• Short-term CR (into Nov./Dec.): Pros: Keeps pressure on negotiations; preserves optionality for full-year bills; aligns with appropriators’ preference. Cons: Multiple votes and recurring brinkmanship; Senate dynamics likely drive the final shape due to 60-vote requirements.
• Longer-term CR (into early/late 2026): Pros: Reduces repeated cliffs; gives more time to reconcile toplines. Cons: Limits policy adjustments and earmarks; would likely defer decisions on priorities important to states and local partners
• Year-long CR: Preferred by some conservatives; would largely freeze current policy and funding levels and sideline many programmatic changes and directed spending.

Potential Negotiating Pieces

• ACA premium tax credits: Discussion continues around an extension (e.g., 18–24 months) and potential income-testing. Allowing significant premium increases is politically challenging; any inclusion would likely require cross-party votes.
• Other trade-offs: Expect debates over domestic/defense balance, disaster/emergency supplementals, and policy “riders.” Senate passage will require bipartisan support.

This Week’s Hill Activity

House

• Rules Committee: Parameters for floor debate on the National Defense Authorization Act (NDAA) and border/immigration measures.
• Financial Services: Hearings on FinCEN oversight and overall banking sector health.
• Appropriations: Markup of the Labor-HHS bill.
• Oversight: Hearing on children’s health and nutrition; separate markup on D.C. public-safety legislation.
• Intelligence: Markup of the FY2026 Intelligence Authorization Act.

Senate

• Homeland Security & Governmental Affairs: Hearing on science, public perception, and policy around vaccines.
• Finance: Treasury nominations.
• Commerce: Hearing on a federal AI action plan with former OSTP leadership.
• Armed Services: Nomination hearing for the Vice Chair of the Joint Chiefs of Staff.
• Appropriations: Markup of the Homeland Security bill.
• Judiciary/Foreign Relations: Consideration of judicial and State Department nominees.

What to Expect

• Expect a CR: Plan for short-term extensions of current funding rather than immediate enactment of full-year bills.
• Directed funding & programs: A short CR preserves opportunities for adjustments later this fall; a longer CR would delay programmatic changes and make new starts more difficult.
• Monitoring risks: We are tracking (1) the CR duration, (2) any health-care affordability provisions (e.g., ACA credits), (3) supplemental packages (disaster, infrastructure, community safety), and (4) potential riders that could affect state and local implementation.