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CapWatch:
January 21, 2026

CapWatch - Larkin Hoffman Public Affairs

Minnesota State CapWatch

Minnesota Remains in National News; Litigation over Federal Presence Continues

With the Department of Homeland Security having dispatched nearly 3,000 Immigration and Customs Enforcement (ICE) agents to Minnesota in recent weeks, tensions remain high, particularly across the Twin Cities metropolitan area. Following the death of Renee Good in South Minneapolis two weeks ago, protests have sprung up across Minnesota as residents have raised concerns over the tactics and methods used by ICE agents as part of a federal immigration enforcement initiative.

The protests have largely remained peaceful, but the potential for violence like the civil unrest following the murder of George Floyd in 2020, led Gov. Tim Walz to mobilize units of the Minnesota National Guard. At the same time, the Pentagon has ordered approximately 1,500 active-duty soldiers to prepare for a possible deployment to Minnesota as President Donald Trump has threatened to invoke the Insurrection Act if protests turn violent.

Last week, Minnesota Attorney General Keith Ellison, along with the cities of Minneapolis and St. Paul, filed a lawsuit against the Department of Homeland Security alleging the actions of the ICE agents in Minnesota exceed their federal authority. The federal judge assigned to the case declined to rule immediately, instead providing the federal government until Monday to submit their argument and giving the state until Thursday to respond. Attorney General Ellison is seeking a preliminary injunction to stop ongoing ICE operations in the state while legal authority is litigated.

Yesterday the federal Justice Department served subpoenas to the offices of Gov. Tim Walz, Attorney General Keith Ellison and Minneapolis Mayor Jacob Frey in connection with a Justice Department investigation into state and local officials to see if they may have conspired to impede federal officers from discharging their duties. Walz’s office confirmed that a subpoena was received, to which Walz stated, Minnesota would “not be drawn into political theater,” and alleged that the Justice Department’s investigation “does not seek justice,” but is a “partisan distraction.”

Also of note, former interim U.S. Attorney for the District of Minnesota Joe Thompson and five other federal prosecutors resigned citing pressure from the U.S. Department of Justice to investigate the widow of Renee Good following her death earlier this month. Thompson was a leader in fraud investigations in Minnesota and was key in exposing the Feeding Our Future fraud scandal.

Governor Walz Released Capital Investment Proposal

Gov. Walz recently introduced a $907 million capital investment and infrastructure proposal in advance of the 2026 legislative session. The proposal would spend $700 million in General Obligation or “GO” bonds as well as $45 million in General Fund dollars, along with money from the Trunk Highway fund, for a total of $907 million across all state agencies. The largest single line item was $316 million to preserving existing state infrastructure that needs maintenance. That includes $150 million for projects on Minnesota State and University of Minnesota campuses.

Additional notable projects include:

Advisory Committee on Capitol Area Security Meeting

On January 13, 2026, the Advisory Committee on Capitol Area Security met to approve a report that will be reviewed by the legislature when they convene in February. The committee engaged a third-party consultant to do a security assessment and provide recommendations on improving safety. Several of those recommendations were adopted, including improving technology and system integration across the grounds, establishing consistent post orders and staffing levels, and establishing a screening model to reduce dangerous items from entering the complex. The advisory committee also included a recommendation that weapons screening technology be added to the Capitol.

The Advisory Committee is made up of two legislatures from each party, as well as Lt. Gov. Peggy Flannagan and Minnesota Supreme Court Justice Natalie Hudson. The report was approved unanimously by all members of the committee, with the exception of the recommendation to allow access control and screening management. The two Republicans on the committee, Rep. Jim Nash (R-Waconia) and Sen. Warren Limmer (R-Maple Grove), voted against the recommendation.

Minnesota Political News & Updates

As we look toward the 2026 legislative session and the 2026 elections, the political landscape continues to evolve as individuals announce retirements or new political endeavors. The following are a few developments from the past week:

Federal CapWatch

The Senate is out this week, leaving all legislative action concentrated in the House. Members return to Washington this evening, setting the stage for what is expected to be a busy and potentially volatile stretch on the House floor.

House activity this week is driven by three interrelated dynamics: consideration of the final FY2026 minibus appropriations package, ongoing disputes over tariffs, and member attendance challenges that continue to complicate vote counting in a narrowly divided chamber.

The House is moving toward consideration of the final FY2026 minibus funding package, which includes the Defense, Homeland Security, Labor HHS, and Transportation HUD bills. While party leaders are not fully aligned yet, the House is notably close to advancing the entire slate of FY2026 funding bills roughly ten days ahead of the January 30 funding deadline.

Republican leadership is also exploring whether to attach additional measures to the funding package, including renewal of the African Growth and Opportunity Act and a trade preference bill for Haiti, both of which have bipartisan support. There has also been discussion of adding health care related provisions, including measures affecting pharmacy benefit managers, though it remains unclear how leadership will ultimately handle these proposals. Adding unrelated policy provisions to a funding bill remains politically risky given the GOP’s narrow majority and Speaker Johnson’s historical reluctance to load up appropriations packages.

Even without additional measures, passage is far from guaranteed. As of early this morning, appropriators had not yet released final legislative text, despite expectations that the package would be available over the weekend. Last minute delays remain common as staff finalize language. The scope of the package creates multiple partisan flashpoints, and passage of the rule governing floor consideration may be particularly challenging for House Republicans.

Homeland Security funding is expected to be especially difficult for Democrats. Opposition to a full year DHS funding bill has intensified following recent ICE related incidents in Minneapolis and increased pressure from advocacy groups. The challenge is compounded by the significant DHS funding included in the One Big Beautiful Bill Act earlier this year, making Democratic support for this package more uncertain. While Republicans are relying on Democratic votes to move the minibus and avoid a funding lapse, skepticism over DHS funding and potential late additions complicate that strategy.

The House will also consider a Congressional Review Act resolution introduced by Rep. Pete Stauber that seeks to overturn the federal withdrawal of certain lands in Cook, Lake, and St. Louis Counties from eligibility for future mining or mineral leasing.

Tariffs remain another major source of tension. President Trump’s expanding trade actions are forcing renewed debate on Capitol Hill, where Republicans remain divided. New tariff threats targeting European countries, tied to the administration’s Greenland policy, have raised bipartisan concerns. At the same time, Washington is awaiting a Supreme Court ruling on the administration’s tariff authority, which could have significant implications for congressional action. Compounding matters, House GOP leaders may soon lose their ability to block votes challenging tariffs. Existing procedural language preventing such votes expires at the end of January and extending it may prove difficult given growing frustration among Republican moderates.

Attendance continues to be a critical variable. With only a two-seat majority, even a handful of absences can derail leadership plans. Several Republican members missed votes last week, though leadership expects the return of Reps. Derrick Van Orden and Greg Murphy. Other absences remain uncertain, including Rep. Steve Womack, while ongoing campaign travel by Rep. Wesley Hunt continues to test leadership’s margin for error.

With the Senate out and Speaker Johnson overseas in London addressing the British Parliament, House leadership is managing a high-stakes week with little margin for error. Appropriations, tariffs, and attendance pressures are converging at the same time, increasing the likelihood of procedural delays, unexpected votes, and late-breaking changes. Members return this evening, and the next several days will determine whether House leaders can clear the FY2026 funding package ahead of the January 30 deadline or whether internal divisions force a more chaotic path forward.

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