Legislative Update - May 28, 2025

Publish Date
Committees
Political Council

It has been more than a week since the Minnesota legislature adjourned the 2025 session and there has been some slow, agonizing movement toward finalizing the remaining budget bills. Four working groups have met publicly so far, to either walk through their agreements or trade offers on the outstanding sticking points, which for the Tax bill, seems to be the entire bill. The Jobs, Labor and Workforce Development bill is nearly done, with only negotiations on modifying the ban on non-compete agreements remaining. Human Services and Education Finance also met once publicly, but have yet to return.

Despite some effort to resolve the differences and call a special session prior to state employees receiving anticipatory layoff notices, the soonest day seems to be Tuesday next week for a multi-day special to avoid a partial shutdown.  

As a reminder, below are the remaining bills that need to pass: 

Other updates 

The U.S. House passed the tax and spending bill off the floor. If it passes the Senate, this will have devastating consequences for Minnesota, as items for consideration have numerous cancellations of climate resiliency standards and grants and significant Medicaid restructures. Proposals on Medicaid cuts include: 

  • Implementing work requirements 

  • More frequent eligibility checks for both recipients and providers 

  • Moratorium on rule change for Basic Health Plan, CHIP, and Medicaid enrollment 

  • Reducing Federal Medical Assistance Percentage (FMAP) by 10% for states that provide any medical coverage to undocumented individuals 

  • Cutting retroactive coverage from three months to one 

  • Requiring co-payments for individuals covered under expanded coverage above the federal poverty level 

  • Prohibiting Medicaid payments to be paid to nonprofit providers, essential community providers and their affiliates primarily engaged in family planning services, reproductive services, or provide abortion services not currently exempted under the Hyde Amendment 

  • Blocking any state from increasing the provider tax 

  • Disqualifying gender care and transition services from Medicaid and the Affordable Care Act 

The proposal in total would cut Medicaid spending by $715 billion over ten years and result in more than 10 million people losing their health insurance coverage by 2034. Medicaid is the largest provider of health insurance for Minnesotans, covering roughly 20 percent of the population. Proposed increase to states’ cost sharing percentages for SNAP benefits could cost Minnesota more than $200 million annually.