Ewald at the Capitol: Special Election Results, Walz Running for 3rd Term

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September 19, 2025
 

Xp Lee Wins Special Election, Restores Tie in Minnesota House

DFLer Xp Lee won the 34B (Brooklyn Park, Champlin, Coon Rapids) special election on Tuesday to fill the seat of late Speaker Emerita Melissa Hortman, securing 60.82% of the vote to 39.11% for Republican Ruth Bittner. Lee is a former Brooklyn Park City Council member and health equity analyst, born in a refugee camp in Thailand.

His win restores the Minnesota House of Representatives to a 67-67 tie between the DFL and Republicans, preserving a power sharing agreement crafted in 2025 after election results left neither party in full control. Under that deal, committee leadership and many legislative processes are split evenly or require bipartisan cooperation.

Lee has pledged to “work hard every day” to carry forward Hortman’s legacy and campaigned on priorities like education, healthcare access, and infrastructure.

Walz Running for 3rd Term

On Tuesday, Gov. Tim Walz ended months of speculation and announced he is running for a third term in 2026. In a video posted online, Walz outlined his priorities if reelected — including combating fraud in state government, making health care more affordable, investing in public education and addressing gun violence.

On the Republican side, three candidates have declared their campaigns for governor: 2022 Republican nominee Dr. Scott Jensen, businessman Kendall Qualls, and State Representative Kristin Robbins, who currently chairs the newly formed House committee on fraud prevention.

If reelected, Walz would become the first governor in state history to win three consecutive terms. Gov. Walz has not announced his running mate. Current Lt. Gov. Peggy Flanagan is running for the United States Senate seat being vacated by U.S. Senator Tina Smith.

Minnesota Receives Top Credit Rating

Gov. Walz announced that Minnesota has once again earned a AAA credit rating from all three major credit agencies (Moody’s, S&P Global Ratings and Fitch) marking the fourth consecutive year the state has received the highest possible rating. This rating reflects continued confidence in Minnesota’s fiscal management, economic performance and budgeting practices.

The governor emphasized that, despite economic uncertainty at the federal level, Minnesota’s financial outlook remains strong due to balanced budgets, protected reserves and long-term investments. “These ratings are a testament to the strength of Minnesota’s economy and our commitment to responsible financial stewardship,” Walz said.

Minnesota is one of only 16 states to currently hold a AAA rating from all three agencies. Minnesota Management and Budget Commissioner Erin Campbell credited the bipartisan effort it took to maintain fiscal discipline, especially during a year that required tough budget decisions and compromise from the nation’s most closely divided legislature.

Each agency praised different aspects of the state’s financial health. Moody’s cited high fund balances and financial flexibility, while Fitch highlighted Minnesota’s diverse economy, educated workforce and low long-term liabilities. S&P Global noted the state’s strong management practices, solid reserves and conservative debt profile.
 

Executive Order to Address Fraud in State Programs

Gov. Walz issued Executive Order 25-10 to strengthen Minnesota’s ability to prevent, detect, and respond to fraud in state programs. The order emphasizes protecting taxpayer dollars, ensuring public programs serve those most in need, and building public trust in government. It provides direction to several state agencies and takes effect 15 days after publication in the state register.

The Department of Human Services (DHS) is tasked with increasing transparency by publishing program integrity actions, implementing a data-driven post-payment review system for Medicaid claims and identifying high-risk programs for potential reform or closure. DHS will also apply stricter licensing controls, track provider payments through unique identifiers, conduct pre-payment reviews for high-risk claims and disenroll inactive Medicaid providers. Additionally, DHS will modernize fraud prevention systems and seek federal resources and expert support.

The Department of Public Safety (DPS) will lead the formation of a Statewide Inspector General Coordinating Council to bring together agency investigators and internal control staff. DPS will facilitate data-sharing, trend analysis and best practices across agencies, expand access to investigative support and collaborate with the Attorney General’s Office on Medicaid fraud cases.

Minnesota Management & Budget (MMB) will focus on building a statewide culture of fraud prevention by developing standards for employee training, strengthening program integrity career paths and requiring ethics and fraud prevention training for all state employees.

Minnesota IT Services will enhance fraud detection by providing data analytics and technology support. All state agencies are directed to collect and analyze data to prevent fraud and refer suspected cases to appropriate enforcement authorities.
 

Minnesota Sees Job Growth in August

Minnesota added 5,900 jobs in August, showing stronger growth than the flat national employment trend, according to new data from the Department of Employment and Economic Development (DEED). The state also added nearly 1,100 workers to its labor force, while the unemployment rate ticked up slightly to 3.6%, which is still below the national rate of 4.3%.

Over the past year, Minnesota has gained more than 39,000 jobs, a 1.3% increase that outpaces the national growth rate of 0.8%. Private sector growth was even stronger at 1.4%. Construction, education, and health services led August job gains, while government and manufacturing saw losses.

Early Voting Starts Today

In local communities around Minnesota, early voting starts today (Friday, September 19) for general elections on Tuesday, November 4.

This includes early voting for two state senate seats that are currently vacant:

SD 29, previously held by Sen. Bruce Anderson (who passed away this summer), includes much of Wright County and parts of Meeker and Hennepin Counties. The candidates are Republican Michael Holmstrom, Jr., and DFLer Louis McNutt.

SD 47, previously held by Sen. Nicole Mitchell (who resigned this summer), includes parts of Washington and Ramsey Counties. The candidates are DFLer Rep. Amanda Hemmingsen-Jaeger and Republican Dwight Dorau.

Ewald Consulting Government Relations Toolkit 

We are sharing content to help you better understand the legislative process and how to engage effectively. From decoding how the Legislature works to learning how to advocate for your priorities, these resources are designed to support your advocacy every step of the way.

This week’s article outlines what to expect when meeting with legislators.

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What to Expect When Meeting with Legislators