The Minnesota Legislature closed out the 2026 session Sunday night after a complicated two-year run. This year, the state Senate kept legislation moving with Democrats holding a one-vote margin over Republicans in a 34-33 split. The House was evenly split 67-67, so many bills were halted by Republicans pending a bipartisan agreement. This leaves plenty of bills still on the table for the 2027 session.
First, what’s the difference between budget and bonding bills?
Last year’s legislative session passed a $66 billion biennium budget for 2026-2027 in an overtime special session. That pays for core government services. This year, a $1.24 billion bonding bill was agreed upon. That bill authorizes the government to borrow money by issuing bonds, which is then used to fund long-term public infrastructure and capital projects. The bill is on its way to Governor Tim Walz’s desk to become law.
What passed
Taxes:
–License tab fees will be reduced, returning to 2022 rates beginning Jan 1, 2027.
-Property tax relief in the form of a one-time $125 million plan, with households making $142,000 or less a year eligible for relief.
Hospitals:
-Hennepin County Medical Center (HCMC) will receive a one-time lifeline fund of $205 million. This bill also creates a $500 million reserve account that HCMC–and possibly other state hospitals desperate for funding–can access through 2031. $30 million was set aside for rural hospitals in financial distress, but many say this isn’t enough to fix the “systemwide crisis.”
Infrastructure:
–$1.24 billion bonding bill for statewide projects. One third of the bill, about $420 million, will go toward water infrastructure projects.
Fraud:
-After being approved by the Senate last year, the Office of Inspector General (OIG) was finally given the go-ahead by the House. This bill creates an office–ready to operate by Sep. 1, 2027–aimed at preventing fraud in state-administered programs.
-Any funds that were obtained through fraudulent means will be taxed 100%. This tax is on top of any criminal penalties or restitution a convicted person must pay.
-The Medicaid Fraud Investigation Unit (MFIU), run by the state Attorney General’s Office, is getting a $1.23 million boost each year from 2027-2029 to its general fund. This will allow for 11 new investigators, three attorneys, and four support staff to be hired.
Crime and Safety:
-While impersonating a police officer was already a misdemeanor, the state bumped it up to a felony, allowing for higher penalties and up to two years in prison. This comes almost one year after House Speaker Melissa Hortman, her husband Mark, and their dog Gilbert were shot and killed by a man who was dressed as an officer.
-New social media regulations for kids will require anyone 15 and younger to get parental permission to join social platforms, among other changes.
–$32 million for new and ongoing safety measures at the State Capitol. With the Hortman shooting and the mass shooting at Annunciation Catholic School in the span of two months last summer, the Capitol has already taken extra security measures to protect lawmakers.
Good and Services:
-A reform on homeowners’ associations means that fines will be capped at $100, among other changes.
-The “Grandparents’ Happy Hour bill” will allow residents and guests to enjoy liquor, served by their assisted living facilities, during certain events.
–Minnesota’s beloved meat raffles will be more affordable with a cap on prize values of $200 and ticket prices of $5.
What failed
Gun safety:
-Any bills that would have banned assault-style rifles and high-capacity magazines failed this session, despite countless hours of testimony from survivors of the Annunciation Catholic School shooting. Democrats held a days-long sit-in at the House chambers, but it wasn’t enough to sway Republicans. House Speaker Lisa Demuth (R) said the bill “didn’t move through the appropriate committees.”
ICE:
-Despite passing the Senate on the one-vote Democratic margin, a bill that would ban federal officials from concealing their identities, with exceptions, did not make it out of the House. The “ICE Accountability and Justice Bill” would have also led to extra protections for schools and daycares from federal immigration enforcement, and allow for the Minnesota Bureau of Criminal Apprehension (BCA) to investigate the homicides of Renee Good and Alex Pretti.
Goods and Services:
-Local businesses were supposed to receive $100 million in aid to help recoup losses after ICE’s Operation Metro Surge. While the Senate signed off on the bill, the discussion did not reach the House.
-The federal 340B Drug Pricing Program will expire in July 2027 after it passed the Senate but died in the House. Hospital officials pushed hard to instate an extension, but their efforts were unsuccessful.
-The “Magic Mushrooms Act” would have created a program greenlighting the legal use of psilocybin mushrooms as therapy for individuals with severe depression or PTSD, did not make it to the governor’s desk despite receiving some support.
Taxes:
-Big social media companies that collect data on Minnesotans could have been taxed, sending the money to help work sectors prepare for AI integration. But, the conversation went nowhere with Republicans who wanted fewer taxes across the board.
-The “One Big Beautiful Bill Act” calls for no tax on some workers’ tips and overtime. Republicans pushed for a state law to align with federal law, but the bill was laidover.
