ST. PAUL, Minn. (KFGO/CBS) – With just days left until the Minnesota Legislature must adjourn for the year, DFL Gov. Tim Walz and legislative leaders in a politically divided Capitol reached a deal Wednesday night that includes funding to shore up Hennepin County Medical Center and one-time relief to taxpayers struggling with the high cost of living.
The bipartisan agreement, which leaders announced in a news release, is simply a one-sheet document that includes top-line numbers for supplemental spending for this current two-year budget cycle. Sources at the Capitol tell WCCO the finer points include $205 million in one-time funding this year to help HCMC, which hospital leaders say is on the brink of closure if it doesn’t receive a lifeline.
There would also be a new $500 million for a hospital reserve account to ensure it stays open into the future. The deal does not include an extension and expansion of the sales tax in Hennepin County that originally supported construction of Target Field to cover HCMC, which was another proposal discussed during the session to address the hospital’s funding woes. That 0.15% ballpark tax is set to end.
“At a time of real uncertainty, we are protecting Minnesota’s strong financial position while delivering a historic, bipartisan investment in HCMC, a cornerstone of our health care system and a critical safety net for Minnesotans across the region,” Walz said in a statement.
Republicans notched a win for one of their key priorities this year: lowering car registration fees. The DFL-led legislature in 2023 changed the formula for how much drivers owe when they renew their tabs in order to boost transportation funding to pay for roads’ and bridges’ construction and repairs. The one-time relief totals $250 million, though it’s unclear for what year the reduction in fees will apply.
“With this budget, we’re delivering on affordability for communities across the state. This will help Minnesotans statewide afford their lives for years to come,” GOP House Speaker Lisa Demuth said in a statement.
There is also a one-time funding boost to reduce the property tax burden for homeowners at a time when the average statewide increase in 2026 was nearly 7% across city and county levies.
A previous estimate from the Department of Revenue on a similar measure backed by the Senate DFL suggested nearly 600,000 Minnesota households would benefit for $171 extra dollars on top of the homestead credit refunds they already received.
Lawmakers are expected to share more details about the agreement on Thursday.
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