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Minnesota Capitol Update
Written by Sarah Psick, AGC Consultant
The Minnesota Legislature is (almost) back to regular business. Governor Walz welcomed House members on Tuesday when he brought his annual homemade pans of bars to the House Floor session, lightening the mood – if even for just a little bit. In one week, 786 bills were introduced in the House; the Senate, which has been meeting for almost a month, has seen 1,417 bill introductions so far. Both bodies are ahead of pace.
Stable and ongoing transportation funding is a priority for AGC of Minnesota. We continually advocate for policies to grow the construction industry. This week, we submitted a letter to the House Transportation Committee outlining our objection to HF 5 and provisions that would repeal transportation funding investments passed in 2023.
Additionally, AGC of Minnesota joined a bipartisan coalition of legislators, business groups, and labor unions in supporting permitting reform legislation aimed at streamlining the permitting process and reducing regulatory burdens.
AGC of MN 2025 Legislative Policies
Stopping Fraud
Combating fraud has become a focal point in state discussions, from headlines and court cases to a Governor Walz Executive Order, new bill introductions in both the House and Senate, and a dedicated House committee on fraud prevention.
This week, the Senate advanced a bill to establish a statewide Office of Inspector General, while Senate Republicans held a press conference outlining plans to hold the government accountable. Additionally, the House Committee on Fraud Prevention met for the first time, reaching bipartisan agreement that fraud is a significant issue, though consensus on solutions remains elusive. Expect these discussions to continue throughout the session as lawmakers work toward assembling a budget.
AI Concerns
Artificial Intelligence (AI) is becoming increasingly integrated into daily life. On Tuesday, the Senate Labor Committee heard from researchers, workers, businesses, and union leaders on the current and potential effects of AI on Minnesota’s workforce. Lawmakers are now considering how to balance AI’s efficiencies with worker protections and whether policy changes are necessary.
Republican House Majority
House Republicans are making use of their temporary majority to push priority bills through the committee process—many of which seek to delay or roll back programs passed under previous Democratic majorities.
Bills discussed this week included:
- Environmental permitting reform
- Delayed implementation of the Minnesota Paid Family and Medical Leave program
- Stopping the gas tax index and retail delivery fee
- A temporary halt on light rail transit spending
- Restricting state services and payments to undocumented noncitizens
- Lifting the ban on nuclear power
- Tough-on-crime legislation
Expect continued debate as these proposals move through committees and onto the House floor in the coming weeks while Republicans hold a one-seat majority.
Sports Betting: Still a Gamble
The odds of legalizing sports betting in Minnesota became longer when SF 757 failed on a 6-6 tie vote in the Senate State and Local Government Committee on Thursday. The bill has bipartisan support and represents an agreement among the state’s eleven tribal nations, allied charities, professional sports teams, and a horse racing track.
However, concerns over problem gambling, addiction risks tied to mobile and live betting, and financial structures led some legislators to hesitate. There is still time for the committee to reconsider the bill before the session ends in May, but it must pass through multiple committees before reaching the Senate floor.
2026 Election: Ready or Not!
The 2026 election cycle kicked off yesterday when US Senator Tina Smith announced she would not seek reelection. Lt. Governor Peggy Flanagan quickly threw her hat in the ring; several Democrats and Republicans have also expressed interest; the list will only grow!
Next Week: Lawmakers will have a full agenda as they navigate committee hearings with the temporary Republican House majority and narrow Senate DFL majority. Committee schedules and agendas can be viewed here
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