Minnesota Faces Possible Government Shutdown as Budget Negotiations Stall
ST. PAUL, MN – Thousands of Minnesota state workers are set to receive layoff notices this week due to an impasse at the Capitol, as lawmakers have failed to reach a budget agreement. If negotiations do not progress by the end of this month, the state could face its first government shutdown since 2011, scheduled for July 1.
Legislative leaders had committed to finalizing a balanced budget by May 19, but critical components remain unresolved. The state is legally required to pass a balanced budget every two years, and significant bills, including the E-12 Education budget and the Health and Human Services budget, which together constitute over half of the state budget, are still pending.
Despite the ongoing stalemate, DFL Majority Leader Erin Murphy expressed optimism during her appearance on WCCO Sunday Morning. She reiterated hopes for a special session called by Gov. Tim Walz for a legislative vote, stating, “We’re hopeful that it can be this week.”
The legislative landscape is complicated, with both the House and Senate featuring narrow margins—67 Democrats and Republicans in the House, and a slim DFL majority in the Senate. Disagreements over critical issues, including free health insurance for undocumented immigrants, have further complicated discussions. A recent agreement to roll back benefits for undocumented adults while maintaining coverage for children has sparked strong opposition from DFL legislators.
As tensions rise amidst a fractious Democratic caucus, the path to a final budget remains unclear. Gov. Walz has indicated that a special session will only be called once an agreement is firmly established, underscoring the urgency for resolution in the coming days.
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