Trump’s increased health care costs and slower economic growth drive budget challenges

Saint Paul, Minn. – Today’s economic forecast showed that growing health care costs and sluggish economic growth — thanks in large part to Donald Trump’s policies — are negatively impacting Minnesota’s state budget. Wage growth is lower, consumer spending is weakening, and inflation continues to be elevated. Minnesota workers and families are experiencing an affordability crisis, and that is reflected in our state’s economic forecast. 

House DFLers released the following statements: 

House DFL Caucus Leader Zack Stephenson: 

“Last month was open enrollment and all across Minnesota, in fact all across the country, working people saw the cost of their health insurance skyrocket. The single biggest takeaway from this budget forecast is that the same health care cost increases that are hitting family budgets are now impacting the state budget.

“For the last two budget forecasts, Democrats have warned Minnesotans about what could happen to our state budget and our economy as a result of Donald Trump. And now, we’re seeing the consequences: higher prices, higher health care costs, more layoffs, and more giveaways going to billionaires and big corporations at the expense of the rest of us.

“Minnesota DFLers are working to fix this broken, rigged system and build a future where hard work is actually rewarded, families have a real chance to get ahead, and communities can thrive.” 

House DFL Floor Leader Jamie Long: 

“Whether through reckless tariffs, gutting affordable health care, or shifting wealth to the ultra-rich with new tax giveaways, Donald Trump is making life harder for the middle class. It shouldn't be a surprise that the same economic failures that are hurting families are also putting pressure on Minnesota's state budget. Meanwhile, Republicans here at home blindly stand by Trump as they support his agenda, with cuts to critical services and tax cuts for the rich that are taking us in the wrong direction. Minnesotans deserve leaders who put working families first, not billionaires. We clearly aren’t getting that from Donald Trump and the Republicans who empower him.”

House Ways and Means Committee Co-Chair Cedrick Frazier: 

"Donald Trump has failed to deliver on his promises of affordability for Americans. Throughout the past year, Trump and his cronies have deliberately created division and chaos, scapegoating vulnerable communities to distract the public from the administration's shameful actions, which are causing real harm. This manufactured crisis is rooted in Trump enriching billionaires. It is not the fault of immigrants going to work, trans people simply being themselves, or Black and Brown communities fighting to keep food on the table and a roof over their heads. 

“Republicans continue to defend a broken status quo and a rigged system designed to benefit only the rich and powerful. Working-class Americans are living with the severe consequences of the Trump Trifecta, and while we will not be able to backfill every bit of the damage that’s been done, I am committed to working with my DFL colleagues to repair what we can. Through fiscally responsible budgeting and smart investments, we will make sure Minnesotans have a fair and equitable chance to thrive.”