Hello from St. Paul,
Minnesota lawmakers wrapped up the 2026 session by approving a package focused on tax relief, government accountability, and anti-fraud protections.
$400 million in tax relief will be put into state law, including $125 million in property tax relief and $250 million in vehicle tab fee reductions. The Pass-Through Entity tax provision, which provides significant tax relief for Minnesota businesses without increasing costs to the state, will also be continued.
To address growing concerns over fraud and misuse of taxpayer dollars, lawmakers approved the creation of an independent Office of the Inspector General (OIG). The office will investigate state agencies, grant recipients, and contractors suspected of fraud or criminal misuse of public funds.
But we also supported long-overdue investments to help counties modernize the technology systems used to administer human services programs. The upgrades are intended to improve efficiency, strengthen security protections, and enhance eligibility verification. In addition, newly approved welfare reforms will require able-bodied adults receiving Medicaid benefits to work, participate in job training, or pursue education to maintain eligibility.
Worth remembering: although the evenly divided Minnesota House — with 67 Republicans and 67 Democrats — often struggled to reach agreements, the split also prevented more extreme proposals from advancing. Climate policies projected to increase household costs by $7,000 annually, bans on commonly owned handguns and hunting rifles, and a fivefold increase in vehicle tab fees were all stopped in their tracks.
We stood firm against many extreme proposals this session. I’m pleased we were able to deliver tax relief, strengthen protections against fraud, and prevent harmful policies from becoming law.