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CapWatch:
June 6, 2025

CapWatch - Larkin Hoffman Public Affairs

Minnesota State CapWatch

Special Session Announced

Earlier today, Gov. Tim Walz formally called the Minnesota Legislature back to the State Capitol for a special legislative session, beginning Monday, June 9, 2025, at 10:00 am. The session is set to last just one day with all four caucus leaders agreeing to suspend the rules and take up a series of omnibus budget bills, an omnibus tax bill, an omnibus capital infrastructure bill, and a number of other legislative priorities.

Legislative leaders and members of the working groups in different budget areas have been working for weeks to negotiate the details of the omnibus finance bills in advance of an eventual special session. In announcing the special session, legislative leaders noted that it was important to pass a budget as soon as possible, as preparations for a government shut down began early June and, if a budget is not passed, the government would shut down on July 1, 2025.

Budget Agreement

A budget agreement was announced Friday morning that was signed by all legislative leaders in both DFL and Republican caucuses, as well as Governor Walz.

In announcing the special session, the governor and all four caucus leaders signed a letter outlining the parameters of the special session. This included an agreement for all four caucuses to vote to declare a legislative urgency which will allow them to introduce and pass legislation in a single day. Additionally, leaders have agreed that no amendments to any bills will be allowed and no bills other than the ones listed in the agreement will be passed. The following bills will be taken up

Legislation to Originate in the House of Representatives

Legislation to Originate in the Senate

As of this morning, details on most the bills can be found on the working group website, but some proposals have yet to be released.

One additional note, in announcing the special session legislative leaders confirmed they intend to pass an omnibus capital investment and infrastructure bill, but it remains to be seen how large the bill will be and what kinds of projects will be included. Additionally, several additional hot button issues are also being finalized, such as a proposal to sunset eligibility for MinnesotaCare for undocumented adults. Final versions of the bills that will be introduced for Monday’s special session will be posted online this weekend so the public can see what is being voted on.

Federal CapWatch

Senate Reconciliation Showdown Begins

The Senate enters a pivotal four-week stretch as Republican leadership works to advance the reconciliation package, “One Big, Beautiful Bill” to President Trump’s desk by July 4. The House passed its version by a single vote, and now Senate Majority Leader John Thune must navigate competing GOP factions to secure the 51 votes needed for passage. Whatever emerges from the Senate will need to clear the House once again, setting the stage for another high-stakes vote.

Ten Senate committees have reconciliation instructions, but the Senate Finance Committee is carrying much of the weight. Chair Mike Crapo (R-ID) will be central to final decisions on tax policy, the debt limit, and Medicaid. Expect a high stakes balancing act as he attempts to thread together support for both the revenue and spending sides of the package.

Senate Democrats, led by Minority Leader Chuck Schumer, are preparing a full-court press to stall the bill. Schumer has pledged to make the process as politically painful as possible and is increasing coordination with House Democrats.

Budget Hawks and Spending-Cut Skeptics

Senator Ron Johnson (R-WI) has been one of the most vocal critics of the House bill, arguing it does not go far enough to reduce federal spending. Despite the inclusion of over $1.5 trillion in cuts, Johnson and allies like Senators Mike Lee (R-UT) and Rick Scott (R-FL) are pushing for deeper reductions—particularly in safety-net programs. Johnson has indicated he is unmoved by pressure from leadership or former President Trump.

On the other end of the spectrum, moderate Republicans are sounding alarms over cuts to programs like Medicaid and SNAP. Senator Susan Collins (R-ME), who is up for reelection in 2026, has raised concerns about the political fallout of Medicaid reductions. Senator Josh Hawley (R-MO) has also signaled strong opposition to any cuts to Medicaid benefits.

Clean-Energy Holdouts

The House-passed package includes over $550 billion in rollbacks to clean-energy tax credits from the Inflation Reduction Act. Several Senate Republicans are opposed to a full repeal. Senators Lisa Murkowski (R-AK), Thom Tillis (R-NC), John Curtis (R-UT), and Jerry Moran (R-KS) are advocating for a more targeted approach, setting up a likely clash with conservative colleagues pushing for full rescission.

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