Taxes, bonding and key policy decisions take shape at the Capitol + Leadership alumni event

By Doug Loon
President and CEO
Minnesota Chamber of Commerce

It’s been another busy week at the Chamber, but first I want to highlight the Leadership Minnesota program brought to you by the Minnesota Chamber of Commerce for business support and professional development of our membership leaders. We recently visited the Flint Hills Pine Bend Refinery for a tour and briefing, where we discussed the state of Minnesota’s economy and the role of the business community. It was a great group and a terrific experience. Thank you to our friends at Flint Hills for inviting us in and sharing their story, which is important to our state’s economic future.

Of course, the Legislature is now headed into the final days of the 2026 legislative session, setting the stage for some of the biggest decisions still on the table. The focus is now squarely on a handful of major issues, including a bonding bill, funding for Hennepin County Hospital systems, federal tax conformity and legislation addressing fraud in state programs.

Many key policy issues remain unresolved, and with a closely divided House and a DFL-controlled Senate by one seat, it is still unclear what final agreements will be reached before adjournment on May 18. A large Senate finance package is also moving forward, combining funding for multiple state agencies including education, energy, environment, labor and state government into one major bill. Legislative leaders and the governor have been meeting behind the scenes, but no major deal has yet been announced.

The Chamber’s top priority remains federal tax conformity, which is still under consideration as part of these final negotiations. All major policy pieces are now on the table, and the next 10 days will determine which policies ultimately move forward this year.

On taxes, both chambers continue to debate conformity provisions, many of which are important for attracting investment and supporting business growth in Minnesota. At the same time, there are also efforts underway to increase taxes. We continue to express caution about any tax increases and instead encourage action that makes Minnesota’s tax code more competitive. Prompt movement on tax conformity provisions designed to support business investment would be a positive step in that direction.

In workplace policy, differences remain between the House and Senate approaches, particularly around new business mandates and artificial intelligence-related regulations. We urge caution in these areas and encourage lawmakers to focus on improving existing regulations, especially employer mandates related to leave programs. Across all issues, the Chamber continues to advocate for policies that support economic growth, competitiveness and a stable business climate as the session comes to a close.

Thank you for your continued support of the Chamber and for engaging in efforts to promote business-friendly policies at the Capitol this year. Stay tuned for updates, and if you are a member, be sure to review your weekly updates and engage where you can. We are in the final stretch, and there is still time to make progress this year. Thanks for being with us. We look forward to catching up with you on next week’s episode of the Minnesota Business Podcast.