Minnesota Legislature got a dose of normalcy when Gov. Tim Walz unveiled his blueprint for the next two-year budget. The governor also weighed in for the first time publicly on some of the chaos in the Minnesota House.

Tim Walz urged lawmakers Thursday to end a power struggle that has disrupted the first week of Minnesota's 2025 legislative session, but expressed support for House Democrats' boycott of the chamber to block Republicans from wielding power.

House Republicans have elected a speaker but the DFL is asking the state Supreme Court to intervene. At issue is whether 67 seats are a majority or whether 68 are needed.

Walz wants to shift the tax burden to wealthier Minnesotans, but Republican House leaders say any increases are off the table.

Gov. Tim Walz on Thursday pitched a tighter two-year budget, complete with spending pullbacks and other measures to keep a potential deficit at bay. He also proposed a lower state sales tax rate but called for extending the tax’s reach to financial services.

Governor Walz’s party has lost control of the Minnesota Legislature and faces mounting criticism as a budget deficit looms.

Walz focused on tackling fraud, cutting state spending and long-term fiscal stability in Minnesota’s 2026-27 budget.

Also included in the proposal would be an increase to the surcharge for health maintenance organizations, cuts of state funding to private schools, and reduce Special Education transportation reimbursement costs.

Gov. Tim Walz's budget proposal would make changes to sales tax collections and trim state spending in an effort to stave off a steep shortfall in future years.

Tim Walz urged lawmakers Thursday to end a power ... but expressed support for House Democrats’ boycott of the chamber to block Republicans from wielding power. House Republicans hold a ...

Democratic Minnesota Gov. Tim Walz, who ran his vice presidential campaign on defending democracy during the 2024 election, has notably remained silent as Democratic lawmakers in his state are threatening a legislative session boycott to deny GOP lawmakers a quorum to elect a speaker and conduct legislative business.