Home News BREAKING: Walz, legislative leaders reach bipartisan deal to end 2026 session

BREAKING: Walz, legislative leaders reach bipartisan deal to end 2026 session

341
0

Gov. Walz, legislative leaders announce bipartisan budget deal

ST. PAUL, Minn. (Northern News Now) – Gov. Tim Walz and legislative leaders announced a bipartisan budget agreement Wednesday evening that they say keeps Minnesota’s budget balanced while funding key priorities, including health care, infrastructure and tax relief.

Walz said the agreement takes a “disciplined, fiscally responsible approach” by making targeted reductions while protecting the state’s financial position.

The deal includes a major investment in Hennepin County Medical Center, funding for rural and critical access hospitals, infrastructure spending, property tax relief and a reduction in tab fees.

Senate Majority Leader Erin Murphy said the agreement protects several Senate DFL priorities, including property tax relief, county support, and health care funding. She said some of the budget work was needed to backfill costs tied to federal cuts.

“The Senate DFL caucus worked throughout this session to address the affordability crisis, save our healthcare system, invest in community infrastructure, and keep food on the table for Minnesotans,” said Senate Majority Leader Erin Murphy.

House Speaker Lisa Demuth said the agreement delivers on affordability through car tab relief, property tax cuts, anti-fraud measures, and support for hospitals and counties.

“Our caucus has fought all session long for car tab relief, property tax cuts, and meaningful anti-fraud measures,” said Speaker Demuth.

House DFL Leader Zack Stephenson called the agreement a strong bipartisan step forward in divided government, saying it provides needed stability for HCMC.

Stephenson says, “While this certainly doesn’t include everything House DFLers wanted, it is a strong step forward on important issues while working in divided government.”

Leadership plans to address the agreement in more detail Thursday morning. Northern News Now will provide coverage of those proceedings.

The full agreement can be read here.

Click here to download the Northern News Now app or our Northern News Now First Alert weather app.

Copyright 2026 Northern News Now. All rights reserved.