Legislative Leaders Agree to Budget Targets

April 3, 2025

Legislative leaders from both sides of the aisle announced an agreement on budget targets for the 2026-27 biennium. The targets inform committee chairs how much they are to cut or add to spending when drafting their final budget bills. 

The Senate’s budget targets propose reducing state spending by $754 million in the upcoming two-year budget cycle and a reduction of $1.7 billion in future years. The House proposed a spending reduction of $1.2 billion for the upcoming budget cycle, and a reduction of $2.6 billion in future years.  

The largest cuts include $300 million in human services and $50 million in both health and workforce. The announced cuts come after Minnesota Management and Budget announced a $456 million state budget surplus for the 2026-27 fiscal biennium, with a projected deficit of nearly $6 billion in the 2028-29 biennium. 

"House Republicans are holding strong on fiscal responsibility, securing budget targets that would represent the largest spending cut in state history and taking a major step towards fixing the Democrat deficit,” said House Speaker Lisa Demuth (R – Cold Spring) in a statement. “I look forward to our chairs working to put together a common-sense budget that makes life more affordable for Minnesotans.” 

Committee chairs will need to finalize omnibus budget bills before the April 11 legislative deadline for major appropriations bills.