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Minnesota's 2026 budget projects a $377M surplus and includes tax changes, new spending, and cuts.
Minnesota Governor Tim Walz unveiled a supplemental budget on March 17, 2026, projecting a $377 million surplus for 2028–29, up from a prior $6 billion deficit forecast.
The plan includes $444 million over four years to expand the Dependent Care Credit, $48 million to create a State Office of Inspector General, $33 million in renter assistance, and $10 million in business loans tied to Operation Metro Surge.
It revives a proposal to reduce the state sales tax by 0.075% and expand it to professional services, while introducing a social media tax on tech companies with over 100,000 monthly users to fund AI workforce transition efforts.
The budget calls for $435 million in future spending cuts, primarily affecting disability services, and includes measures to combat fraud and strengthen public safety.
Lawmakers are not required to pass a budget this session, but negotiations are underway ahead of the May 18 adjournment.
El presupuesto 2026 de Minnesota proyecta un superávit de $377M e incluye cambios de impuestos, nuevos gastos y recortes.