Legislative leaders — Gov. Tim Walz, Speaker Lisa Demuth, Speaker Emerita Melissa Hortman and Senate Majority Leader Erin Murphy — today announced joint budget targets. Among the most notable provisions is a roll-back on MinnesotaCare eligibility, which will end eligibility for adults currently in the program and close the program to new adult enrollees. Children under 18 will continue to be eligible.

State Sen. Jordan Rasmusson (R-Fergus Falls), who has been at the forefront of the Republican effort to repeal taxpayer-funded health care for illegal immigrants, responded to the development.

“This change is a benefit for Minnesota taxpayers and is an acknowledgement that including all illegal immigrants in MinnesotaCare made us a magnet for those who broke the law to enter our country,” Rasmusson said. “Republicans in the Legislature have been leading the charge to end government-funded health care for illegal immigrants.”

Earlier this session, Rasmusson introduced Senate File 690, a bill to fully repeal the eligibility expansion that allowed illegal immigrants to use MinnesotaCare. The issue drew statewide and national attention following a GOP press conference, where Rasmusson and others raised alarms about the surge in illegal immigrant enrollees. He has drawn both statewide and national attention through recent media appearances, including features on Fox Business, KARE 11, WCCO Sunday Morning, and the Star Tribune.

Since January 2025, more than 20,000 illegal immigrants have enrolled in MinnesotaCare — more than three times the original first-year estimate of 5,874.

“With our state facing a $6 billion deficit, we need to set priorities and put Minnesotans first. We should not be incentivizing illegal immigration to Minnesota,” Rasmusson said.

New data from the Minnesota Center for Fiscal Excellence (MCFE) — a nonprofit, nonpartisan organization focused on state and local government finance — underscores Minnesota’s growing budget risk. As of April 1, enrollment had already more than doubled the projections for fiscal year 2029. Early claims show only 20 percent utilization so far, signaling that costs are likely to rise sharply.

MCFE also warns without change, Minnesota is on the same path as California and Illinois, where similar programs have spiraled beyond original estimates. California’s recent expansion came in at $2.7 billion over budget, prompting Gov. Gavin Newsom to call for a pause. In Illinois, costs surged 286 percent over projections, forcing the state to eliminate coverage for certain age groups.

“The inclusion of this provision in the final budget agreement is a necessary and fiscally responsible move to protect Minnesota taxpayers,” Rasmusson said.