Legislative Update: June 11, 2025

Publish Date
Committees
Political Council

At roughly 2 a.m. on Tuesday, June 10, the legislature passed its final bill and adjourned, averting a state government shutdown. The bills now head to Governor Walz for his signature. 

Three weeks after the end of the regular legislative session, there were nine budget bills remaining, as well as the Tax bill, the bonding bill, and two controversial, negotiated policy bills that traveled separately. Generally, the budget bills included agency operating adjustments at the governor’s recommended levels. Below is a summary of additional notable provisions: 

Capital Investment  

  • $60 million for Minnesota State asset preservation 

  • $33 million for DNR asset preservation  

  • $11 million for Mn Zoo animal hospital 

  • $67 million for BCA regional office and laboratory   

  • $55 million for Direct Care and Treatment Anoka Miller Building rehabilitation  

  • $33 million for Corrections asset preservation 

Commerce 

  • Extension of reinsurance program and additional assessment on health plans to fund the state's cost share beginning in 2028 

Human Services  

  • Funding for AMRTC Miller Building bed expansion and operating costs 

  • Additional FTEs for DHS legislative staff 

Health 

  • MDH budget appropriation was made contingent on enactment of H.F. 1, which strips undocumented adults from MinnesotaCare coverage eligibility 

Transportation 

  • Electric vehicle surcharge increase (to reduce erosion of gas tax revenues)  

  • Temporary modification of the auto parts sales tax dedication  

Environment and Natural Resources  

  • Modifies environmental review processes through updated reporting requirements and changes to environmental assessments, including eliminating redundant scoping environmental assessments when an environmental impact statement is already required 

  • Four additional FTEs at MPCA 

Taxes 

  • Eliminates sales tax exemption on electricity for data centers; expands the other exemptions for large scale data centers for 35 years  

  • “June accelerated" Budget gimmick that moves any scheduled sales and use tax payments from July 1 to June 30 

  • Increases cannabis tax from 10 percent to 15 percent and ends the local government cannabis aid  

Jobs and Labor 

  • Modifies the Earned Sick and Safe Time law to allow employers receive attestation of eligible use after two consecutive sick days  

  • Lowers the Paid Leave premium cap from 1.2 to 1.1 percent of pay 

  • $10 million in FY 26-27 and in FY 28-29 for Vocation Rehabilitation Services 

Data Centers bill 

  • Creates certain additional environmental and regulatory requirements for data centers  

  • Extends sales tax exemptions for software and IT infrastructure to large scale data centers for 35 years 

Undocumented adults excluded from MinnesotaCare   

  • Adults are prohibited from purchasing health coverage at the end of 2025 

Bills are expected to be signed into law on Friday.