We are just a couple of weeks away from the start of the 2026 legislative session. We’re heading into the second year of the biennium, so this is not traditionally a budget year, but often, the legislature passes a bonding bill and works on policy in the second year of the biennium.   

 

We got the first indication of the state’s fiscal health in early December, and that forecast projects a surplus of $2.465 billion in FY2026 and a projected shortfall of -$2.960 billion in FY28-29 due to a structural imbalance and a predicted economic slowdown in FY28-29. We’ll get another look at the state’s fiscal health at the beginning of March (the February Forecast), but unless the forecast vastly improves, expect little new spending from the legislature and likely some reductions in current spending appropriations to try to balance the state’s future budgets.   

 

As we head into the 2026 legislative session, the House will remain tied between Democrats and Republicans, and Representative Zach Stephenson from Coon Rapids will step in to lead the House DFL; the Senate DFL will continue to have a one-vote majority. With the tight majority in the Senate and a tie in the House, any bonding bill that passes the legislature will need Republican votes to reach the 60% vote threshold of such bills.   

 

Looking ahead, GMNP will be advocating for housing, child care, and infrastructure funding in a bonding package. We’ll also be looking for opportunities to get additional resources to Greater Minnesota communities in a supplemental budget and a tax bill. Toward this end, we’ll be convening GMNP Legislative Debrief Sessions monthly to talk with GMNP members about what is happening at the legislature and opportunities to get involved. So, keep an eye on your inboxes for invites or scroll down to the events section to register today!

Thank you to the GMNP members that have renewed your GMNP membership for 2026! These resources help our team advocate for Greater Minnesota’s priorities at the state legislature. For those who have yet to pay your membership dues, please submit those dues as soon as possible.

 

If you have questions or need a copy of your invoice, please contact Emma Nelson at ennelson@flaherty-hood.com or 651-259-1936.   

Congratulations – Contamination Cleanup Investigation Funding Awardees!  

At the end of January, DEED announced the latest round of Contamination Cleanup and Investigation Funding awards. The agency awarded more than $6 million to 13 communities, including a number in Greater Minnesota that will begin the work of redeveloping those sites to grow jobs and the tax base as well as clean up soil and groundwater. 

Climate Innovation Finance Authority 

Read about how the Climate Innovation Finance Authority recently provided a loan for $3.62 million to finance a high-efficiency energy system for the renovation of the Sandstone School into workforce housing. Here is the link to learn more about the MnCIFA and if this funding might be a good fit for your project.

 

 

• GMNP 2026 Legislative Agenda
• Recording of GMNP’s Session Wrap Up Webinar
• GMNP 2025 Legislative Session Wrap Up