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2025 session outcomes

The 2025 legislative session marked a dramatic shift from the previous year’s one-party “trifecta” control, with divided government forcing greater compromise, and ultimately delivering more balanced outcomes for Minnesotans. This session took a more restrained “lights on” approach to budgeting, resulting in far less spending and more responsible policymaking overall. 

Republicans can point to their role in restoring balance and bringing reasonableness to the legislative process, while Democrats maintained that they protected key progressive gains from the prior session.

See the guide below for the business community's priorities this session, what passed and what didn't. 


Quick menu

taxes
Taxes
environment
Environment
Workplace mandates
Workplace mandates
Health care
Health care
energy
Energy
Housing
Housing
Transportation
Transportation

 


Taxes

Business priorities

  • No new business taxes
  • R&D tax credit is partially refundable
  • Data centers sales tax incentives extended 
     

Policies we opposed

  • 5th tier income tax
  • New corporate taxes
  • Sales tax expansion
  • Social media tax
  • New limits on carrying over losses
     

Outcomes

  • No new business taxes
  • R&D tax credit is partially refundable
  • Data centers sales tax incentives extended

 

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Environment

Business priorities

  • Environmental permitting reform
  • Scaling back chemical regulations
     

Policies we opposed

  • A new tax on the manufacture, import, or sale of anything with a cord, battery, or circuit board in Minnesota
  • New authority to require air dispersion modeling
  • New authority to cite and fine environmental consultants
  • Establishing an “inherent right” of wild rice to exist.
    (Not just protections for wild rice. A right to exist.)
     

Outcomes

  • Permitting reforms!
    • Makes fixes to determining ‘completeness’ of permit applications
    • Clarifies reporting requirements
    • Streamlines process to undergo environmental review for big projects
    • Creates report on DNR and local government use of watershed extensions
    • Clarifies that local permitting for feedlots can occur simultaneously with MPCA process
    • Creates additional incentives for MPCA to process permits
  • Chemical regulations:
    • Products containing “intentionally added” PFAS are exempt from ban if internal components do not have direct contact with individuals’ skin or mouth
    • Lead and cadmium exempted from ban for certain writing materials (e.g., pens, mechanical pencils, artist materials and solders)
    • Lead and cadmium in key – California standard and delay on implementation

 

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Workplace mandates

Business priorities

  • Fixes to Earned Sick and Safe Time
    • Repeal the “more generous PTO” change
    • Address misuse and workability concerns
    • Allow pro-rating for frontloading hours
    • Relief for new businesses and small business
  • Fixes to Paid Family Medical Leave
    • Program launch delay
    • Limit scope and improve program integrity
    • Reduced total number of weeks
    • Tightened definition of "family"
    • Reduced weekly benefit formula
    • Reduced payroll tax cap
    • Encourage viability and function of private plans
    • Seasonal employee fix
    • Reasonable exemptions
       

Policies we opposed

  • Unemployment Insurance for striking workers
  • Increasing Minnesota’s minimum wage to $15/hour in 2025 and increasing to $20/hour by 2029
  • Employers required to disclose in job postings whether employee health plan options comply with state cost-sharing limits
  • Collective bargaining rights for transportation network company drivers
  • Removal of employee classification safe harbor
  • Additional tax enactment on certain corporations with high principal executive officer to median worker pay ratios
  • Rebuttable presumption that an individual is an employee
  • Holiday overtime pay requirement
  • “Stay-or-pay” provisions prohibition
     

Outcomes

  • “Administrative” modifications to the sick and safe time mandate regarding notice, documentation and advancing hours
  • A reduction in the paid family and medical leave mandate’s payroll tax cap to 1.1%, down from 1.2%
  • No new workplace mandates

 

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Health care

Business priorities

  • Reinsurance continuation
  • No new health insurance mandates
  • No new health insurance / health care taxes
  • Increased federal Medicaid funding for hospitals
  • No public option
     

Policies we opposed

  • 9 new health insurance mandates
  • Many new health care/insurance regulations
  • Several new or increased health care / health insurance taxes
     

Outcomes

  • Reinsurance continued for 2026 & 2027
  • New authority for hospitals to draw down increased Medicaid funds to offset commercial payer costs
  • Public Option authority repealed
  • No new health insurance mandates
  • “Frozen Formulary” requirement only new HC reg to pass, limiting controls for prescription drug costs
  • One new assessment on health insurers passed, raising insurance costs roughly $1.7 million a year

 

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Energy

Business priorities and outcomes

  • Lift moratorium on new nuclear power generation (not passed)
  • Protect rate payers against new mandates (not passed)

 

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Housing

Business priorities and outcomes

  • Bipartisan work on reducing mandates (not passed)

 

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Transportation

Business priorities

  • Protect General Fund support for roads and bridges
  • Increase Electric Vehicles' (EV) financial contribution to transportation
  • Delay the Greenhouse Gas / Vehicle Miles Traveled mitigation requirement
  • Continued development of Sustainable Aviation Fuel (SAF) in Minnesota
     

Policies we opposed

  • Statewide ban on billboards
  • Clean Fuel Standard
     

Outcomes

  • Auto Parts transfer from GF to transportation was cut
  • EVs will pay increased registration fee; new tax on public charging stations
  • GHG/VMT not delayed, but definition of "mitigation" projects expanded
  • No additional support for SAF

 

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