[ST. PAUL, MN] – Governor Tim Walz, Senate Majority Leader Kari Dziedzic, and House Speaker Melissa Hortman today announced that they have reached an agreement on key budget decisions, taking a major step toward finalizing the two-year state budget. The agreed-upon budget framework includes historic investments for kids and families, the largest tax cut in state history, and funding to improve health and safety.

“Whether it’s ensuring every kid can eat breakfast and lunch at school or passing $100 million in tax cuts, this has been the most productive legislative session in a generation – and we’re not letting our foot off the gas,” said Governor Walz. “This agreement moves us closer to ending child poverty and putting the state surplus directly back into Minnesotans’ pockets. I’m grateful for the long hours and close collaboration of our legislative partners to put together this budget.”

"The Senate DFL majority, working together with the Governor and the House, has enacted transformational legislation this year that will help families across Minnesota," said Senate Majority Leader Kari Dziedzic. "With these budget targets, we can create a state budget that helps family budgets and focuses on lowering costs and investing in the needs of people and communities across the state."

“Our budget agreement focuses on the issues Minnesotans across the state value and care about: investing in public education, making health care more affordable, and building an economy that works better for everyone. We also heard from voters that they were concerned about climate change, and this budget includes significant investment in climate action. Finally, we share the Governor’s commitment to make this the best state in the country to raise a child, and we’re working to dramatically reduce child poverty,” said Speaker Melissa Hortman. “We are making historic investments in Minnesota’s future and prioritizing the people and places that need the most help because everyone deserves the opportunity to succeed. I’m grateful to Governor Walz and Senate Majority Leader Dziedzic for their partnership as we continue crafting a budget that meets the needs of Minnesotans.”

The agreement, typically not reached until near the end of the legislative session, includes the following targets. Committee chairs will finalize the components of the budget areas.

    $2.2 billion for K-12 education and pre-kindergarten
    $1.178 billion for children and families
    $100 million for broadband expansion
    $1 billion for housing
    $255 million for energy and climate
    $650 million for public safety
    $2.3 billion for infrastructure projects
    $3 billion in tax cuts, the largest in state history