Governor Tim Walz Outlines Final Legislative Agenda in Last State of the State Address

(KNSI) — Governor Tim Walz delivered his final State of the State address Tuesday night, outlining a series of proposals he’s asking the legislature to act on before he leaves office. Walz announced last year he would not seek a third term.

Walz opened with tributes to former House Speaker Melissa Hortman and her husband Mark, who were shot and killed in June by a gunman disguised as a police officer, and to victims of the Annunciation Church shooting in Minneapolis. He also addressed what he called a federal “invasion” of Minnesota during immigration enforcement operations, referencing the deaths of Renee Good and Alex Pretti.

Fraud prevention was a central theme, coming on the same day search warrants were executed at nearly two dozen sites as part of an ongoing crackdown. Walz said the state has added investigators, auditors, and law enforcement resources, along with an outside firm reviewing high-risk programs. He proposed legislation to strengthen detection through data analytics, increase criminal penalties for defrauding taxpayers, and establish a centralized fraud prevention office. He also called for a major overhaul of the human services system, moving away from a patchwork of county, state, and managed care administration toward a single centralized agency controlling funds before they are distributed. The legislature says it is close to finishing work on a bipartisan bill creating an independent Office of Inspector General to oversee social safety net program spending.

On gun measures, Walz called on lawmakers to ban what he called weapons of war and high-capacity magazines, require safe storage and reporting of lost or stolen firearms, implement a firearm insurance requirement and ammunition tax, and close the ghost gun loophole.

For families, Walz proposed expanding the Dependent Care Tax Credit for more than 100,000 families, reducing childcare costs by up to $3,000 for those with one child and up to $6,000 for families with two or more children under five.

On taxes and cost of living, the governor proposed cutting Minnesota’s statewide sales tax for the first time in state history. He also proposed a social media tax targeting large tech companies that profit from user data, with revenue directed toward workforce development in the age of A-I, and a separate tax on firearms and ammunition.

On housing, Walz noted the state has already made a historic $1 billion investment in housing affordability. His new proposals include $33 million for permanent supportive housing and $34 million to help first-time homebuyers with down payments.

On infrastructure, Walz is asking the legislature to pass a $907 million bonding bill covering public safety, clean water, transportation, and affordable housing – including construction of a new centralized Minnesota State Patrol headquarters and ongoing removal and replacement of lead pipes statewide.

For businesses and families affected by immigration enforcement operations, Walz proposed $10 million in partially forgivable loans for businesses that lost significant revenue, along with rental assistance for more than 9,000 households.

“Our work here in St. Paul is simply to make our state a place worthy of the incredible people who live here,” Walz said.

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