House leaders search for middle ground, term first negotiations 'encouraging'

With large issues like a bonding bill and Hennepin County Medical Center’s potential closure on lawmakers’ plate this session, legislative leaders and Gov. Tim Walz met for the first time Thursday to begin negotiating a deal.

House Speaker Lisa Demuth (R-Cold Spring) called it “a very good first meeting” and House DFL Caucus Leader Zack Stephenson (DFL-Coon Rapids) said it was “a very encouraging first meeting.”

“It was particularly encouraging that there was alignment on several key priorities, including doing something to save HCMC, taking action to address fraud and getting a bonding bill,” Stephenson said.

Due to the tied House, they focused on “what could be agreed upon” last session and they’ll have the same focus this session, Demuth said.

“We’re in a tied House, divided government. We have to be able to agree,” Demuth said.

Most House committees are wrapping up their work this week with a deadline of 5 p.m. Friday to approve finance bills. Unlike last session’s global budget targets, House leaders declined to create budget targets for committees this year.

“Because this isn’t a budget year, but there’s still work to be done, our (committee) chairs have been working very well together as far as recognizing that we don’t have any excessive dollars but still knowing that some things need to be done for the state,” Demuth said.

Stephenson added that while the current scenario is working well for some areas, it’s been “bumpy” in others. However, he and Demuth have enough in common that he believes they’ll have a successful end to the session “if we continue to work at it aggressively.”

Demuth previously said she hasn’t spoken with Walz since September, but she said Thursday that he called her the previous day to talk.

All the topics of discussion Thursday were issues that have been publicly known and discussed this session, Demuth said.

According to Demuth and Stephenson:

• conversations on a rescue plan for HCMC have been taking place between legislative leaders and the governor’s office;
• Republicans want a potential school safety package to be for all schools, not only public schools;
• Thursday’s meeting included a “wide ranging” discussion on DFL priorities; and
• discussion took place on aligning state policies with new Medicaid requirements in the Trump administration’s “One Big Beautiful Bill.”