The Minnesota Senate returned to the Capitol on Monday, June 9, for a one-day special session to complete the state’s budget for the 2026–2027 biennium, said Senator Gary Dahms (R-Redwood Falls). Lawmakers passed 11 budget bills and four additional measures, including infrastructure investments and changes to health care coverage.
The final budget totals approximately $66 billion over two years and includes $4.2 billion in new revenue over four years. Much of that revenue comes from increased taxes and fees affecting health care services, long-term care, and daily costs for Minnesotans. Meanwhile, schools are facing more than $420 million in projected budget shortfalls, with over $300 million in special education cuts expected to strain local districts and potentially lead to higher property taxes.
“During the session, Senate Republicans worked to put Minnesotans first,” Senator Dahms said. “It’s disappointing to see cuts to important services for seniors, people with disabilities, and schools, while taxes and fees go up. Meanwhile, government agency budgets will grow by over $770 million in the next four years. This is happening even as we reduce funding for special education, nursing homes, and infrastructure. This budget does not meet the real needs of our communities and puts too much pressure on hardworking families.”
Despite record spending, the budget includes significant cuts to essential services. Minnesota nursing homes will see $161 million in funding reductions. The budget also includes a $137 million fee on long-term care facilities, known as the “granny tax,” which will raise resident costs. Disability services are also being cut by nearly $958 million over the next four years.
Lawmakers did reach a bipartisan agreement on a $700 million capital investment package focused on roads, bridges, and clean water projects across Minnesota. The legislation prioritizes essential infrastructure investments while steering clear of controversial, partisan projects. A significant portion of the package — $290 million — is dedicated to critical road improvements, bridge replacements, wastewater upgrades, and other foundational infrastructure projects.
“Funding for core infrastructure, not metro pet projects, is what our communities have needed for years,”Senator Dahms said. “This package is a win for Greater Minnesota, delivering on real needs like safe roads and clean water.”
In addition, both chambers passed Republican-championed legislation ending MinnesotaCare health insurance for illegal immigrant adults. House File 1 repeals free, taxpayer-funded health insurance for adult illegal immigrants. The bill repeals a controversial 2023 law extending full MinnesotaCare coverage to eligible illegal immigrants that went into effect in January 2025.
“This legislation is about putting Minnesotans first,” Senator Dahms said. “We must prioritize taxpayer dollars for Minnesotans in need — not extend benefits to individuals who are in the country illegally.”
Republicans also secured the continuation of Minnesota’s reinsurance program, a long-standing tool to stabilize the individual health insurance market and keep premiums lower for consumers. Preserving the program was a top Senate Republican priority heading into the special session.
“Reinsurance delivers real results by reducing health insurance costs for consumers. This program directly helps Minnesotans afford quality care, and I’m proud we fought to protect it,” Senator Dahms concluded.