2026 Recap: Common Sense Beats Socialism

2026 Recap: Common Sense Beats Socialism

Friends and neighbors,

I am happy to inform you that the 2026 Legislative Session has come to an end with major advancements for common-sense Republican priorities.

Not long ago, I issued a newsletter regarding how the Democratic Socialists of America (DSA) have increased their political power within the DFL in the Twin Cities and the danger that these leftist ideologues pose to our statewide economy. If you have not already done so, I encourage you to read it.

Click HERE to read my newsletter regarding the DFL/DSA agenda.

Because of your efforts, Republicans were able to use the leverage gained from our tie in the Minnesota House to pass legislation that will immediately benefit working families, as well as block radical DFL/DSA agenda items that were proposed this year.

Though tensions are high, and many challenges still lie ahead, I remain forward-looking and optimistic. 

Below are some of our most important wins from this year:

Anti-Fraud Victories

• Office of the Inspector General (OIG) Bill: Establishes a new, independent, and apolitical state agency to investigate and prosecute fraud. Governor Walz and Attorney General Ellison actively allowed Minnesota's fraud epidemic to continue for personal political gain. The new OIG will be voted on by a bipartisan, bicameral council and remain completely apolitical in cracking down on criminals. The creation of this agency is vital for restoring public trust that our taxpayer dollars are being safeguarded by a nonpartisan entity.
• Take It Back Act: Establishes a 100% tax on state money obtained through fraud, to be imposed on individuals and organizations that have been convicted of the crime. This will apply to convicted fraudsters in addition to any court-ordered restitution that they may already have to pay. It also allows the Minnesota Department of Revenue to swiftly seize assets of convicted fraudsters (homes, vehicles, etc.), so the state can retrieve as much taxpayer money as possible.
• Work Requirements for Welfare Benefits: Implements expanded work requirements for able-bodied adults aged 18–64 (without dependents under 14) who use Medicaid programs. Recipients must work, volunteer, or participate in training for at least 80 hours per month (roughly 20 hours per week) to avoid a three-month time limit on benefits. Able-bodied adults who choose not to work should not be subsidized by those who do.
• Tech Modernization: Allocates over $25 million to state and local governments for the purpose of modernizing outdated human services software. This new software will include artificial intelligence systems to flag statistical anomalies that indicate potential fraud.

Tax Reductions Inbound

• $250 Million in Car Tab Fee Reductions: In 2023, the DFL Trifecta dramatically increased car tab fees to make driving unaffordable. Their goal is for everyone to be reliant on public transit. This year, House Republicans secured one-time car tab fee reductions to help working families. We will continue to advocate for this one-year cut to be permanently extended.
• $125 Million in Property Tax Relief: Unfunded DFL/DSA mandates on cities, such as Paid Family and Medical Leave, have led to dramatic property tax increases. Minnesotans should not be priced out of their homes as the result of bad legislation. Again, this property tax cut is only for one year, but we will continue to advocate for it to become permanent next year.
• Business Tax Improvements: Brings Minnesota into compliance with recent federal tax provisions and extends the Pass-Through Entity tax provision, providing hundreds of millions in relief for Minnesota businesses at zero cost to the state.
• Ending the Ballpark Tax: Minnesotans will no longer have to pay this sales tax that uses public dollars to fund a private business.

Funding for Rural Hospitals

• Rural Hospital Funding: Increases Medical Assistance rates for rural and critical access hospitals, putting them on equal footing with the boost Hennepin County Medical Center already receives.
• Hennepin County Medical Center Funding: Allocates money from the general fund along with significant accountability and governance language to make sure HCMC is operating efficiently. HCMC is a vital piece of Minnesota's hospital infrastructure. However, socialist politicians have mismanaged the Hennepin County budget to such an extent that the hospital is at risk of insolvency. House Republicans made clear that we will not continue to indefinitely subsidize HCMC at the expense of our rural hospital systems.
• Hospital Stabilization Fund: Establishes a new fund to help hospitals across Minnesota that need emergency money to avoid bankruptcy.
• Uncompensated Care Fund: Helps hospitals cover the costs of care for cases in which no payment is received from the patient or insurer. With the rising cost of insurance, this has become a significant challenge for hospitals, and this measure is meant to provide budget relief.

School Safety Initiatives

• Anonymous Threat Reporting System: Allows school districts to adopt a 24/7 anonymous local or statewide system for reporting dangerous school behavior, supported by a $5 million state investment.
• School-Linked Behavioral Health Grants: Authorizes seed funding and mental health grants to expand the infrastructure schools need to deliver and bill for student behavioral health services.
• Mobile Crisis Units: Amends state policy to explicitly protect families by clarifying that all parts of mobile crisis services are fully exempt from out-of-pocket cost-sharing, co-pays, and deductibles.
• Anti-Grooming Legislation: Makes the sexual grooming of children a felony offense, establishes automatic teacher license revocation for offenders, and eliminates the strict three-year look-back window for state education investigations.
• Compensatory Revenue Support: Appropriates $10 million in compensatory revenue adjustments to provide one-time financial relief to school districts facing imminent budget shortfalls.
• All Schools Covered: All children in Minnesota deserve to be safe in school. House Republicans successfully advocated for this legislation to apply to public and nonpublic schools.

Disastrous DFL/DSA Legislation BLOCKED

The DFL/DSA are not shy about their objectives. Their mission is based upon resentment and is quite simple: They wish to take your property and give it to themselves and their donors. Fortunately, we prevented this from happening.

DFL/DSA proposals that our Republican tie in the House allowed us to BLOCK:

• Unconstitutional Gun Bans: There was a bill to ban future sales of "assault-style weapons" and force Minnesotans to register their current firearms. It would have also banned possession of "high-capacity" magazines over 10 rounds. House Republicans were able to prevent the DFL/DSA from turning more than a million Minnesotans into felons overnight. Socialists first seek to disarm you, so that they can later take everything you own. We will never let that happen.
• Wealth Tax: Speaking of taking everything you own, DSA-endorsed operatives  introduced a bill this year to impose a 1% annual "wealth tax" on all assets exceeding $10 million (homes, land, businesses, vehicles, etc.). This tax would especially impact farmers, who own considerable land assets, but often operate with low cash flow. Over time, they would gradually be forced to sell their land just to keep up with the tax.
• Quintupling of Car Tab Fees: Another DFL/DSA representative suggested that she would like to introduce a bill to "quintuple!" car tab fees for Minnesotans. This is on top of the already astronomical increase passed by the DFL Trifecta in 2023. House Republicans not only rejected this idea but secured car tab fee relief for working families.
• State Flag Blackmail: This was a bill to withhold state funds from cities and municipalities that refuse to fly the new and unpopular Minnesota flag. The rewriting of history and suppression of free expression is inherent in every socialist movement and must be repelled. Minnesotans did not want a new flag in the first place. We had no say in the redesign, and we should not be required to fly a flag that eliminates our historic values.

I am extremely proud of my Republican colleagues for holding the line this year against the radical DFL/DSA agenda, and I am thankful to our leadership team for their strategic negotiating efforts that allowed us to accomplish our objectives. Most of all, I am thankful to you for your continued engagement that made this all possible.

Together, we will restore common sense in Minnesota!

Tom Murphy

MN State Representative District 9B

Proudly Serving Otter Tail and Douglas Counties

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