MN Lawmakers, Walz Announce $52 Billion Budget Deal

The leaders of the Minnesota Legislature and Democratic Governor Tim Walz have announced a $52 billion deal for the state’s next two-year budget.

But lawmakers will have to finish the work during a special session next month. Difficult negotiations are ahead on police accountability and some other policy issues that weren’t part of the agreement.

The agreement calls for a balanced two-year budget without raising taxes, while fully exempting from state taxes federal Paycheck Protection Program loans to businesses and unemployment insurance benefits that were raised during the pandemic. It also includes extra money for summer school to help students catch up.

The $52 billion deal compares with the $48 billion budget that the legislature approved in 2019 and $52.4 billion for Walz’s original budget proposal.