What bills did and didn't pass the Minnesota Legislature this year? Here's a list of what cleared the finish line.
The Minnesota Legislature finalized the next two-year state budget and wrapped up all of its work on Monday in a short special session, after lawmakers failed to make the deadline last month and were forced into overtime.
Ultimately, they approved a $66 billion spending plan funding state government and its programs for the next two years. Lawmakers made difficult decisions about where to spend limited state resources as they looked to stave off a projected $6 billion deficit in future years.
Republicans in the divided Legislature say the reductions amount to the largest spending cut in state history.
In the three weeks since the regular session ended May 19, key negotiators and legislative leaders refined the proposals largely behind closed doors with occasional public meetings of unofficial working groups on each budget area. All of the bills were ready to go by the time the special session began.
Here are some of the policies that got the final OK during the 2025 regular session and special session that ended early Tuesday morning.
Rollback of MinnesotaCare for undocumented immigrants
Just one year after they were authorized to enroll in MinnesotaCare, undocumented immigrant adults will no longer be eligible for the state program providing health care coverage to low-income people on January 1.
The change was a linchpin to get a budget completed in the most closely divided Legislature in state history, but the compromise preserved access to the program for children.
Republicans were concerned about growing enrollment ballooning costs in an unsustainable way in the future, while Democrats were deeply opposed and characterized the rollback as "cruel." Ultimately, though, DFL leaders supported it to honor the deal.
Cannabis tax increase
Minnesota's legal adult-use cannabis market isn't operating yet. But before the first retail sales even begin, there will be a tax hike on cannabis products.
The 2023 law greenlit recreational marijuana with a gross receipts tax of 10% on sales at licensed businesses. That will be raised to 15%, according to the tax bill that passed both chambers.
E-bike rebate changes
After overwhelming demand crashed the state's website, the e-bike rebate program got a tune-up this year before the second round of rebates go out the door this summer. The maximum rebate amount is $750, which is half of the original $1,500 cap, and there will be a lottery to choose who receives one instead of being issued on a first-come, first-served basis.
Minnesotans are only eligible if they have a disability or they make less than $78,000 as a married couple filing jointly or $41,000 as a single taxpayer.
Mental health warning labels on social media sites
In a larger commerce package, lawmakers signed off on requiring mental health warning labels on social media platforms by July 1 of next year.
The notice must warn users of the potential negative mental health harms and provide them with access to resources to help with mental health, including the 988 Suicide and Crisis Lifeline.
Closure of Stillwater prison
Included in the judiciary and public safety budget is a provision allowing the closure of the state's second-largest prison by 2029.
State officials endorsing the facility's closure said conditions have worsened to a point where it is no longer economically feasible to keep the 111-year-old building operating due to maintenance costs.
Meanwhile, critics say doing so without a plan is irresponsible and they worry about overcrowding at other facilities and displacement of corrections officers.
DWI policy reforms in wake of Park Tavern tragedy
Following the drunk driving crash that killed two and injured others at Park Tavern last summer, lawmakers extended the amount of time people who have multiple DWI convictions need to use ignition interlock devices to operate a vehicle.
Lake weed removal safety
The new law boosts safety protections for employees who use scuba equipment to remove lake weeds, after two young men drowned on the job.
The bipartisan Brady Aune and Joseph Anderson Safety Act, named in their honor, requires divers be scuba certified and trained in first aid and CPR, mandates certain equipment and requires employers to provide it and calls for a standby diver.
Defunding Minneapolis-Duluth train project
Lawmakers greenlit a bill that would cancel $77 million in earmarked funds for the Northern Lights Express project, a proposed passenger rail project between Minneapolis and Duluth, and shift that money to cover unemployment insurance for hourly school workers during the summer.
The Republican co-chair of the House Transportation Committee said the move blocks access to federal funds, which the Department of Transportation said would cover 80% of the project's cost, because there's no longer state match.
The project had been a top GOP target, while protecting and supporting sustained jobless benefits for school bus drivers, food service workers and teacher aides are priorities for Democrats.
Protections for service dog trainers
A new law will ensure individuals training service dogs have the same housing protections as the people who rely on the animals to navigate daily life. The measure ensures service dogs in training are exempt from homeowners association and apartment rules that do not allow dogs.
What didn't pass the finish line this year
Compromise was essential with the tied House and one-seat DFL majority in the Senate, so neither side got everything they wanted and many of the partisan provisions fell by the wayside in order to get enough votes to pass both chambers.
Here are some of the proposals left on the cutting room floor this session, but could be revived next year:
Tax on social media companies
Senate Democrats wanted to impose a new tax on social media companies, based on the number of users they have on their platforms, but there is deep opposition from Republicans in the tied House who need to back the measure in order to advance it.
Supporters say it would have helped Minnesota rake in revenue at a time of a tight budget and that the platforms should pay the premiums because they profit off of consumer data.
"Baby bonus" for child tax credit
The bipartisan House tax bill initially included a "baby bonus" of a $100 increase to the child tax credit — an expansion of the policy the DFL-led Legislature approved two years ago providing up to $1,750 per child in a refundable credit with income restrictions.
Last year lawmakers authorized advanced payments of the credit, which the Department of Revenue will roll out this year in order to achieve the state's goal of slashing child poverty levels.
But the provision ultimately didn't make the final version of the tax bill after negotiations with the Senate.
Substantive changes to paid family and medical leave
A top priority for Republicans this year was to make substantive changes to the paid family and medical leave program offering workers across the state up to 20 weeks a year to care for themselves or a loved one, including a newborn. The program is set to launch in January.
They sought delays or scaling back the qualifications and the length of the benefits, but ultimately could not advance that forward because of DFL opposition to unraveling a signature part of their agenda when they had total control of the capitol in the last two years.
The small tweak GOP members secured was reducing the maximum payroll tax hike on employers and employees to support the program from 1.2% to 1.1%.
Office of Inspector General in response to fraud
A new watchdog agency to crack down on fraud in public programs didn't advance, despite broad bipartisan support for the effort.
Establishing an Office of Inspector General (OIG) cleared the Senate in May. It would have created a new independent agency charged with investigating state agencies and private organizations that receive taxpayer money in the wake of high-profile fraud scandals, like the Feeding Our Future scheme that have plagued Minnesota in recent years.
Former DFL House Speaker Melissa Hortman said the state could not afford the $18 million price tag over four years because of the state's gloomy budget outlook.
Sports betting
The Legislature is also on track to leave legalizing sports betting in the state on the cutting room floor. There was a proposal that had buy-in from many key stakeholders — tribal casinos, the state's horse racing tracks and professional sports teams — but due to strong opposition among some lawmakers, it did not move forward out of its committee.
Opponents worry about addiction and fear expanding legal gambling. There have been discussions, though, about formalizing a study to look closer at the issue and impact in Minnesota should the state take that step.
