Special Elections
Minnesota is on track to have six special elections this year, which would tie the record set in 1994. In addition to the three elections held during the 2025 legislative session, at least three more are coming due to the assassination of Speaker Emerita Melissa Hortman, the unexpected death of Senator Bruce Anderson (SD 29), and Senator Nicole Mitchell’s (SD 47) resignation due to a conviction of felony burglary.
The election for Hortman’s seat in House District 34B (Brooklyn Park, Champlin, Coon Rapids) is scheduled for Sept. 16, with a Democratic primary on Aug. 12. Both Senate special elections will take place on Nov. 4. Current DFL state Representative Ethan Cha has filed to run in SD 47. DFL Representative Amanda Hemmingsen Jaeger has also announced she is running, but has yet to file. Republican Dwight Dorau, who ran for the seat in 2024, has also filed. So far, four Republicans and one DFLer have filed for SD 29. Filing closes for both senate special elections on Aug. 6 at 5 p.m.
More special elections may be necessary if sitting legislators are elected to other offices, including Senator Omar Fateh, who is running for Minneapolis mayor. Additionally, if one of the open state senate seats is filled by a sitting state representative, that would precipitate another special election for the house seat. With a nearly even partisan split in the legislature, these races could affect the balance of power in the next session.
New Laws
Seven new laws go into effect Aug. 1, impacting several areas — including public safety and property rights. Key changes include stronger penalties for repeat impaired drivers by extending the DWI lookback period from 10 to 20 years, lengthening license revocation times, and increasing ignition interlock requirements. Lawmakers also raised the speed limit from 30 to 35 mph for farm equipment and vehicles hauling uncovered trash or debris.
Local governments can now require background checks for applicants seeking to operate adult entertainment or massage businesses. Service dog trainers will receive the same housing access as individuals with disabilities who rely on service animals. This includes full access to housing and exemption from extra pet fees.
The Minnesota Partition Act modernizes the 120-year-old legal framework for selling jointly owned property, clarifying legal procedures and court involvement. In addition, the Office of the Ombudsperson for American Indian Families is now exempt from certain court fees, aligning its privileges with those of tribal representatives. A new law also grants limited confidentiality to conversations within restorative justice programs to promote more open dialogue among participants.
MMB July Update
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A recent monthly update from Minnesota Management and Budget (MMB) shows that state revenues are exceeding the previous forecast from February. Net revenues are now estimated to total $31.9 billion, which is 2.7% ($847 million) higher than the February forecast. The increase is primarily due to increased revenue from income taxes. Corporate taxes, sales taxes, and other revenues were below forecast. Despite the additional revenue, the July update anticipates a worse economic outlook than in February, mainly due to slower growth, higher inflation, and higher interest rates. The next major budget update from MMB is expected in late November/early December, which will give us a better idea of the state budget outlook heading into the 2026 legislative session.
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Federal Changes Will Impact State Budget
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The recent passage of President Donald Trump’s Reconciliation Bill by Congress is expected to have significant impacts on the state budget. The legislation notably includes cuts to Medicaid funding that will add new challenges to the state’s finances, as summarized recently by the MN Department of Human Services. Despite this, Gov. Walz has said that there is no need for another special session this year to address these changes.
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New Fraud Investigation Opened
Gov. Walz announced this week that the Department of Human Services (DHS) has paused payments to 50 housing stability providers, resulting from a broader FBI investigation into fraud in Minnesota’s Housing Stabilization Program. This program has received federal attention after the cost, originally projected to be $2.5 million annually, soared to over $100 million last year.
Federal agents have described this as a “massive scheme to defraud” the program, which has offered Medicaid coverage for housing stabilization since 2020. Acting under a new state law, officials now have the authority to suspend funding for up to 60 days when credible evidence of fraud exists. Although the pause may affect some legitimate organizations, Walz emphasized that stricter controls are necessary to close gaps in the system. Additional documentation rules for providers will take effect in August, according to DHS. This case adds to a growing list of investigations of fraud into Minnesota’s state programs — namely Feeding Our Future and autism support centers.
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