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Walz, lawmakers strike budget deal in session's final days

Gov. Tim Walz and three of four legislative leaders announce a bipartisan agreement on biennial budget targets during a May 15 press conference. (Photo by Andrew VonBank)

With five days to go in the 2025 session, three of four legislative leaders announced a budget agreement Thursday that would sunset unemployment insurance for hourly school employees and eliminate MinnesotaCare eligibility for adult undocumented immigrants.

The agreement also calls for closing the Stillwater prison in 2029 and a repeal of a tax credit for data centers.

It would also balance the budget for the 2026-27 biennium and erase 90% of the deficit projected for the 2028-29 biennium, Gov. Tim Walz said at a press conference.

Legislative leaders and Walz noted that none of them got everything they wanted in the budget agreement. They came to an agreement because, even though they have ideological differences, they have respect for the democratic process and each other, Walz said.


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