Session Update: Governor and DFL Leaders Reveal Budget Surplus Targets

Noting that the era of gridlock is over, Governor Tim Walz was joined by House Speaker Melissa Hortman and Senate President Bobby Joe Champion to unveil their agreement on budget targets for the state’s next two-year budget.

Among the allocations for the $17.5 billion budget surplus, the Governor and legislative leaders have directed that $3 billion be used for tax relief, $2.35 billion for early education, children and families, $2.2 billion for E-12 Education, approximately $1 billion for transportation, and $1 billion for housing.

Smaller investments include an additional $670 million for the environment and natural resources, $650 million for public safety, $400 million for state government and $128 million for veterans and military affairs.

Additional budget items include $668 million to implement a statewide Paid Family and Medical Leave program, $240 million to tackle lead pipes and $40 million in disaster relief. All budget areas will receive an increase, with the smallest allotments going to Labor at $8 million and Commerce and Elections each receiving $10 million. The agreement also includes almost $2.3 billion for an all-cash public infrastructure bill.

The announcement was held in the historic Capitol Reception Room Tuesday, March 21.