ST. PAUL — Gov. Tim Walz, Senate Majority Leader Erin Murphy and bipartisan House leaders announced a budget deal on Thursday, May 15, that includes significant cuts to spending on health, human services and transportation.
But, with four days left in the legislative session, the agreement does not appear to have the support required to pass the Senate. A special session is likely.
Walz, GOP House Speaker Lisa Demuth, DFL House leader Melissa Hortman and Murphy signed the agreement released Thursday. Senate Minority Leader Mark Johnson, R-East Grand Forks, did not sign the budget agreement and did not attend the press conference with the other legislative leaders.
Johnson released a statement Thursday morning, which said, in part: “While the final deal includes some needed reforms, it falls short of acknowledging we need bipartisan support to stop the harmful progressive policies hurting small businesses and working families.”
Progressive Democratic senators also said they will not vote for the budget deal.
As Walz and legislative leaders held a press conference announcing the budget agreement, progressive Democrats of the People of Color and Indigenous Caucus and activists chanted outside the room and banged on the door to the room where the press conference was taking place.
Protesters chanted “don’t kill immigrants” and “One Minnesota, right?” — a dig at the governor’s 2018 election slogan.
Given the slim Senate DFL majority, 34-33, Murphy needs either her entire caucus or Republican votes, and it wasn’t clear Thursday morning that she had either.
Senate progressives were outraged that the agreement would end access to state-subsidized health insurance, MinnesotaCare, for undocumented adults. Undocumented children would remain eligible for the program.
The budget agreement outlines the spending targets for each state agency. The overall budget for 2026-27 would be around $66 or $67 billion, several billion smaller than the previous two-year budget, said Ahna Minge, the state budget director.
It would also eliminate the majority of the projected deficit for the budget starting in 2028, assuming the next class of lawmakers follows through on the cuts outlined in Thursday’s agreement.
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