Minnesota Lawmakers, Governor Reach Budget Deal; Announcement Disrupted by DFL Lawmakers’ Protest

(KNSI) — Top legislative leaders and Governor Tim Walz have struck a deal on a new two-year budget, but the announcement wasn’t without some protests.

While the press conference was going on, DFL lawmakers were outside of the Governor’s Reception Room banging on the doors and wanting to be let in. They were heard shouting, “One Minnesota, right?” and “You’re killing our communities!” The group was upset with the compromise that ends state funded healthcare for undocumented immigrant adults as of December 31st, 2025. Undocumented children would remain eligible.

Walz says no one got everything they wanted. House Speaker Lisa Demuth (R-Cold Spring) says the compromise slashes state spending by $5 billion, which is the largest cut in history. It also eliminates $2.17 billion from the projected $6 billion budget shortfall in the coming biennium. If inflation is factored in, that accounts for 45% of the overall deficit.

Other spending cuts include trimming $1.4 billion from the health and human services department, $420 million from the education budget, $308 million from local government aid for cities and counties, and $248 million from the transportation department.

Under the plan, the Department of Corrections announced a surprising move, saying it will close the Stillwater Prison. It will shut down in phases and end any state investment into the building’s crumbling infrastructure due to health and safety issues for staff and the prison’s 1,200 inmates. An estimated $700 million would be needed to bring it up the modern safety and operational standards. The DOC also says it agreed to the closure to enhance the department’s economic efficiency. It will be fully shuttered by June of 2029. The inmates will be transferred to other facilities.

The new budget is expected to be slimmer than the one passed by Democrats in 2023, when the state had a massive $17.6 billion surplus. The money was spent on new programs such as universal school meals, paid family and medical leave, increases in the child tax credit, a one-time rebate to residents, and $9 billion in on projects around the state.

The deadline for lawmakers to finish their work is midnight May 19th; otherwise, a special session will be needed.

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