State legislative update: Legislature adjourns 2026 session
The gavel officially fell on the 94th Legislature over the weekend. It was a historic session, maybe not for all that was accomplished – which was more than most capitol observers expected- but for all that transpired over the course of the biennium.
The 2025 session began with a temporary one vote majority for the House Republican caucus pending the outcome of a special election, a three week blockade by the Democratic caucus, and then the brokering of a power sharing agreement which set the operating procedures for the House of Representatives under an evenly divided chamber. An evenly divided House, a one-seat Democratic Senate Majority and Governor Walz did manage to agree and enact a new two-year budget utilizing a one-day special session on June 9. Then only days later, tragedy struck when Speaker Emmertia Melissa Hortman and her husband, Mark, were assassinated in their home and the attempted assassination of Senator John Hoffman and his wife, Yvette.
The 94th Legislature also had an unusual number of special elections over the course of two years and when it adjourned sine die on May 18, 25 House and Senate members are retiring, seven House members are running for the Senate, and 11 members are seeking another office. An unusually high number in a non-redistricting year.
For the first time in recent memory – maybe ever in the history of the Minnesota Legislature – there was neither an agriculture policy bill nor a supplemental agriculture finance bill signed into law. The evenly divided House did not even move an omnibus bill out of committee. The DFL members of the House Agriculture Committee were unified in their position that the omnibus bill include a ban on the herbicide paraquat. GOP members of the committee were unified in their opposition to a ban, so the committee deadlocked. Despite attempts for dealmaking in the last couple weeks of session, the Senate agriculture provisions that advanced out of committee and were approved on the Senate floor sat on the general orders calendar without any further action before adjournment.
A few days before the end of the 2026 session, leadership did reach agreement on an overall supplemental budget and other key items, which were acted upon before adjournment. This included a $1.2 billion bonding bill, a tax bill, a onetime reduction of vehicle tab fees to 2022 levels, money for county level IT modernization, and funding to stabilize HCMC.
The tax bill was released early Sunday evening and included several federal conformity items including bonus deprecation with the 80% addback/subtraction over 5 years.
- The bill includes an additional $5 million in FY2027, $5.3 million in FY2028, and $2.1 million in FYs 2029-2035 for Sustainable Aviation Fuel. The bill also includes the agreed upon SAF policy language.
- For the beginning of Farmer Tax Credit, the bill lifts the funding cap availability for one year allowing anyone who qualifies for the credit to be accepted who apply for calendar year 2026. This will likely set off a debate next year on how to pay for the tax credit long-term as advocates, including MCGA, have been pushing to lift the $4 million cap on the tax credit that has been in place since 2023.
- The tax bill also included a one-time homestead tax credit refund increase of 14.88%. It is projected that anyone claiming the homestead credit will receive an additional $171 on the homestead refund.
Overall, there were some good outcomes for agriculture and corn farmers but also some missed opportunities. Attention now shifts to candidate engagement in the lead up to the fall election. There is also plenty to continue advocating for at the federal level.
