With Three Weeks Remining in Session, Walz Delivers State of the State
With only three weeks remaining in the legislative session, Gov. Tim Walz gave his State of the State speech last week. In his speech, Walz both touted the state budget his administration put forward and criticized the Trump administration for “throwing our economy into turmoil.” Walz focused much of his speech on what is going on at the federal level, but also noted that bipartisan work is necessary to pass the biennial budget by May 19th.
Walz outlined his legislative priorities, including raising surcharges on large health insurers, reducing the statewide sales tax, and doing more to prevent, investigate and punish fraud. The House of Representatives, Senate and governor all have different priorities, and the next few weeks will be filled with negotiations and working through finance bills in conference committees. Republican lawmakers criticized the speech as polarizing and partisan and argued that the only way to end the legislative session is to work together.
Budget Negotiations Continue; Finance Bills Continue to Move
Budget negotiations continue as the House of Representatives, Senate and governor work toward establishing a global target. Many sticking points remain, but Speaker Lisa Demuth (R-cold Spring) stated last week that she remains positive about the ability to finish work on time. However, Demuth did express concern over the major differences Republicans and Democrats have on a handful of major issues, including the ability of undocumented immigrants accessing MinnesotaCare, funding for summer-term unemployment for hourly workers related to pre-K-12 education that was part of the governor’s proposal, and an overall spending target.
The Legislature has been busy with omnibus finance bills, working to pass them through the Senate Finance and House Ways & Means Committee prior to taking them to the chamber’s respective floor for their first votes. After passage by each chamber, the proposals will proceed to conference committee, where the House and Senate will reconcile any differences the bill may have. The final bills passed by both bodies must meet the approval of the governor. Five of the last seven sessions requiring a biennial budget have needed a special session to complete the work. With three weeks to go, there is still optimism on all sides that they will finish on time, but that remains to be seen.
Senate District 6 Special Election Tuesday
After defeating seven other Republican candidates in the primary, Keri Heintzeman, wife of current Republican Rep. Josh Heintzeman, (R-Nisswa), will square off against DFL candidate Denise Slipy in the Senate District 6 special election. SD 6, which encompasses the north-central area of the state, was vacated when former Sen. Jason Eichorn (R-Grand Rapids) resigned. With the House of Representatives in a tie and the Senate with a very slim margin, the outcome of this election will be important to the vote count when it comes time to pass the budget and potential capital investment bills.
Important Dates to Remember
April 29, 2025 Senate District 6 Special Election
May 19, 2025 Constitutional Deadline to adjourn the legislative session
Congress Back After Recess
After a busy two-week recess, Congress is back in session, and House Republicans are moving quickly to advance their major reconciliation package. This legislation is expected to include significant cuts to Medicaid and other safety-net programs, alongside tax cuts aimed at Americans making under $200,000 per year. The proposal also includes a four-year exemption from taxes on tips, overtime, and Social Security payments.
President Trump acknowledged over the weekend that the tax-cut portion of the package will “take a little while” to finalize. Nevertheless, Speaker Johnson has committed to delivering a reconciliation bill to the President’s desk by Memorial Day — less than a month away. Although the timeline is ambitious, GOP leaders are pressing their committee chairs to move at full speed.
Separately, the Treasury Department is expected to announce the so-called “X date” this week — the projected date when the U.S. will reach its debt limit. This looming deadline is a critical backstop for reconciliation efforts.
House Committee Markups Scheduled This Week
House Republican leadership is also initiating private conversations with members this week to assess how far lawmakers are willing to go on tax policy changes and Medicaid cuts.
Meanwhile, House Democratic leadership is coordinating with committee staff to push back aggressively against the reconciliation package during markups.
On the defense front, the House Armed Services Committee released a proposal on Sunday detailing $150 billion in new Pentagon spending under the GOP reconciliation instructions. This includes $25 billion for Trump’s proposed “Golden Dome” missile defense system, as well as substantial investments in ships, missiles, drones, and other military equipment. Democrats criticized the plan as a partisan maneuver that bypasses the normal appropriations process.
Democratic leaders are also sharpening their overall message. Senate Minority Leader Chuck Schumer described Trump’s first 100 days of his second term as “100 days from hell for the American people,” while House Minority Leader Hakeem Jeffries called the GOP reconciliation proposal “unacceptable, unconscionable, and un-American,” vowing to defeat it.
What’s Next?
The next three months — leading up to the August recess — will likely be the most consequential period of the 119th Congress and potentially of President Trump’s second term.
Today, Speaker Mike Johnson is scheduled to meet with President Trump at the White House at 2:00 p.m., along with NRCC Chair Richard Hudson and Rep. Brian Jack (R-Ga.), who is leading candidate recruitment efforts for House Republicans.
We will continue to closely monitor developments as these high-stakes negotiations and legislative efforts unfold over the coming weeks.
