Friends and neighbors,

In this newsletter, I’m honoring our veterans, talking about data centers, and breaking down the current state of the Unemployment Insurance Trust Fund. But before getting into all of that, I want to share an important update about my service in the Minnesota Senate.

After careful consideration and discussion with my family, I’ve decided not to seek reelection after my term ends in 2026. I believe in term limits, and after 10 years in the Senate, it’s time to give others the opportunity to serve in the legislature. Everyone has something to offer, and there needs to be fresh voices in St. Paul. I’m proud of the things I got done, but I’ll also remember the things that didn’t make it across the finish line and the impact they could have had. My top priorities next session are public safety, addressing rising healthcare costs, and term limits at the Minnesota Legislature.

I view my work in the Senate not as bringing standalone solutions to standalone problems, but as looking at everything as a whole system of desired outcomes. I firmly believe that a pathway to a career where Minnesotans can support their families should lead to a pathway to affordable homeownership, which should lead to a pathway to a reasonable retirement age with a healthy financial outlook. These three pillars are good for families, for communities, and for Minnesota as a whole.

Serving in the Minnesota Senate has been a highlight of my career. I see public service as an opportunity to give back, and I’m proud of my 10 years of service. And after 10 years, it’s time to give others the chance to represent District 22. Fresh voices and new perspectives keep government efficient and honest. I’ll always be proud of the things I got done, and I’ll always think about the things we couldn’t get done and the positive impact Minnesotans missed out on. Thank you to the supporters in my district and across the state, the staff and my colleagues in the legislature, and most importantly, my family for supporting me for the last 10 years.

After the 2026 legislative session, I’ll be taking on new challenges and opportunities.

As I continue preparing for next session, I’m still listening, learning, and working with colleagues on legislative solutions that help Minnesotans. And I want to hear from you. What issues matter most to you and your community heading into 2026?

Your voices have guided my work for a decade, and I’m grateful for the trust you’ve placed in me. I look forward to representing you proudly at the Capitol for one more session.

Rich

Veterans Day
Veterans Day was last week (Nov. 11), and I want to personally thank all veterans for their service. It takes a special kind of person to volunteer to put themselves in harm’s way, and potentially make the ultimate sacrifice, in defense of our nation.

There are nearly 300,000 veterans in Minnesota, and they all deserve our gratitude and respect. They’ve served both at home and abroad to protect the freedoms we enjoy as Americans.

Our veterans continue serving long after they leave the military. They’re leaders, mentors, teachers, parents, coaches, business owners, employees, and public servants, and they bring a perspective shaped by experience and sacrifice to every community they’re part of.

Last week, I had the chance to join veterans at the Hy-Vee in Mankato for a free breakfast honoring active duty service members and veterans. I’m always grateful for opportunities to meet and talk with the men and women who have served, and it was an honor to spend Veterans Day with them. Thank you to Hy-Vee and to all the businesses and organizations who give back to veterans on Veterans Day and throughout the year.

Whether it’s Veterans Day or any ordinary day, take a moment to thank a veteran.

Data Centers
This interim, I’ve been visiting a number of businesses in southern Minnesota. It’s been incredible to see their work up close and the impact they have on our communities and our economy.

On November 12, I attended the Southern Minnesota Initiative Foundation’s Data Center Forum. We discussed data center technologies and designs, their water and energy needs, and the legislature’s ongoing work to secure economic and community benefits.

The bottom line is that data centers are coming. We can position Minnesota to capture the economic benefits, or we can let other states take the lead. Minnesota is already an attractive location thanks to our cooler climate and strong power grid. Improvements in data center technology, like closed-loop cooling systems, circulate water in a sealed and highly efficient system, significantly reducing overall water consumption.

Data centers can provide a major boost to local economies. Their construction creates jobs, their operations support long-term employment, and they add significant revenue to the local tax base, helping fund schools and community projects.

Minnesota has a rigorous environmental review process, and communities can trust that any project moving forward has been thoroughly vetted. When developers work with local municipalities and state agencies to evaluate and select a location for a data center, the result is a win for local residents, a win for the surrounding community, and a win for the state as a whole.

Read more about the Forum here.

Unemployment Insurance Fund
On November 12, the Minnesota Department of Employment and Economic Development’s (DEED) UI Advisory Council held a meeting on the Unemployment Insurance (UI) Trust Fund. As DEED reported last session, the fund has been trending downward, and the Advisory Council confirmed that this continues to be the case.

So what is the UI Trust Fund and how does it work?

The UI Trust Fund is federally required and ensures that money is available to support workers during economic downturns. UI is not forward funded, which means the cost of benefits paid out is recouped through future tax collections. Because the program must respond to sudden increases in benefits payments, forward funding would tie up billions of dollars in the Trust Fund. Employers ultimately reimburse the fund for the benefits that are paid.

The UI Trust Fund was replenished by the legislature in 2022 using federal pandemic funds, but its balance has been declining since its recent peak. Unemployment rates have stayed relatively low, but more people are accessing UI than before the pandemic because more workers now know about the program.

If you are a business owner, here are the 2026 tax rate details:

• March 31, 2025 TF: $652,510,213
  • Total Wages in Covered Employment: $214,415,707,139
  • Base Tax Rate: 0.4 percent (no change)
  • Additional Assessment: 14 percent (up from 5 percent)
  • Taxable Wage Base: $44,000 (up from $43,000)
  • Experience rates: Determined by employer
  • All-in tax range: 0.46 percent to 10.60 percent (previously 0.42 percent to 9.77 percent)

The UI Advisory Council is not bringing forward a legislative proposal on the UI tax structure this year, partly because collections will increase in 2025, which will help stabilize the fund. However, they are discussing several possible changes:

• More precise experience ratings
  • Increasing the maximum experience rate
  • Increasing the base tax rate

The Council noted that this is not an urgent issue at the moment, but it is one that should not be ignored.

 Happy Thanksgiving
As you gather with family and friends to celebrate Thanksgiving, I want to wish you all the best. It is a meaningful time of year to reflect on what we are grateful for and to give thanks for our blessings. This year, I am especially grateful for my constituents in District 22, my colleagues at the legislature, and my family and friends for their support throughout my decade of service in the Senate.

I hope you enjoy a wonderful Thanksgiving and take time to remember the many things you are grateful for.

Thanks,
Rich