Late last night, Governor Walz and legislative leaders struck a deal on a state spending outline after weeks of anticipation. Some top-line items include issues that have been circulating in the headlines this session, such as aid for the financially distressed Hennepin County Medical Center, a one-year cut to vehicle tab fees, property tax relief for homeowners, and $1.2 billion in bonding funds. Other expenditures include additional education spending, debt service for infrastructure, technology upgrades for counties, a safety and security package, and additional fraud investigators, leaving available money from a projected surplus partly unspent to avoid budget problems later. Click here to view the full agreement.
A couple of items that are notably not included in the package are financial relief for businesses impacted by Operation Metro Surge and gun safety legislation that passed the Senate earlier this month—two top priorities for Democrats.
Looking to the tax bill, its future remains uncertain, as does the status of local sales tax requests which continue to draw opposition from the House DFL.
GOP leaders said they agreed to pass a bonding bill to fund construction projects in exchange for the one-time reduction in car tab fees. The bill will require a three-fifths majority to pass in both the House and Senate, which gives Republicans some leverage as they work with other lawmakers to finalize the package.
The inclusion of a bonding bill brings full circle the efforts of the CGMC, our partners, and other stakeholders who fought tirelessly throughout session for significant investment in our state’s infrastructure. While it’s not clear yet which project proposals will be included in the final package, it’s nonetheless a good step in the right direction. The CGMC has received extensive coverage throughout this session, and we would like to thank our members and partners for their support of our advocacy efforts. Click the links below to read some of the articles featuring the CGMC.
- Nerves run thin at the Legislature as clock ticks on bonding bill – MinnPost, May 12, 2026
- Is funding for replacing lead pipes becoming a pipe dream? These lawmakers hope not. – MinnPost, May 7, 2026
- 14 Minnesota mayors: Overriding local zoning won’t create affordable housing – The MN Star Tribune, April 23, 2026
- Minnesota’s lead pipe replacement plan funding starting to dry up – USA Today, March 10, 2026
- Lead removal and zoning among greater Minnesota’s 2026 legislative priorities – MPR News, February 5, 2026
Visit the News Articles page of our website for more coverage and make sure to follow us on social media to stay up-to-date on how CGMC priorities unfold at the Legislature.