From Rep. Lisa Demuth <[email protected]>
Subject Legislative update
Date June 11, 2025 7:10 PM
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LD




Member

Dear Neighbor,

The legislature conducted a one-day special session on Monday to finish work on the state’s next two-year budget and address other important issues. The results show balance has been restored at the Capitol after two years of one-party control.

House Republicans successfully made the largest spending cut in state history, rejected tax increases on Minnesota families and eliminated free health insurance for undocumented people living in our state. We also spared cuts to non-public school aid, delivered crucial funding for rural hospitals and ambulances and spared counties from funding shifts.

The list goes on, and we accomplished these headline victories even without a true Republican majority at the Capitol. It happened with a 67-67 split in the House, a one-seat Democrat majority in the Senate and a Democrat occupying the governor’s office.

We also achieved these good things despite House Democrats refusing to come to work the first 23 days of this session, staying home and collecting a paycheck. It took an extra day to get our work done but most Minnesotans will like the results House Republicans delivered.

First of all, we got a grip on the state budget after the reckless spending and unnecessary tax increases Minnesotans suffered under the former trifecta. Democrats spent the $18 billion surplus, increased state spending by nearly 40 percent and raised taxes by $10 billion in the last biennium – pushing our state toward a $6 billion shortfall.

This year tells a different story. House Republicans erased nearly half of the Democrats’ future deficit, delivering the largest reduction to government spending in state history with $2 billion in budget cuts and, overall, $5 billion less spending than the previous budget. We also blocked proposals to further raise taxes on Minnesota families. We prevented the creation of a fifth-tier income tax bracket ($8 billion), defeated the governor’s sales tax increase ($400 million), and stopped the expansion of sales taxes to professional services ($334 million) to name a few.

We also listened to the majority of Minnesotans and passed a budget that funded key priorities while eliminating a mandate to fund 100 percent of health insurance for illegal immigrant adults. Since the former trifecta’s expansion of MinnesotaCare to include people here illegally took effect just five months ago, enrollment and projected costs have nearly quadrupled initial estimates. And, unlike other MinnesotaCare recipients, people here illegally receive zero federal reimbursement, leaving Minnesota taxpayers to cover the full cost. It was unsustainable and House Republicans successfully put an end to it.

While this isn't the budget we would pass with an outright majority, it is a strong bipartisan framework and I'm proud of what we accomplished. Even with a historic spending cut we were able to pass a responsible capital investment bill to fund essential infrastructure projects – such as water systems, roads and bridges – all around the state.

Minnesota is once again heading in the right direction after House Republicans restored balance at the Capitol. Much work remains to get our state fully back on track, but the work we did this year serves all Minnesotans well instead of catering to activists as was the case in recent years.

I’m looking forward to spending more time back in the district now that we have wrapped up our work at the Capitol. Hope to see you out and about at summertime events in our area. As always, your input is welcome so please stay in touch.

Sincerely,

Lisa






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State Rep. Lisa Demuth
2nd Floor, Centennial Office Building
658 Cedar St., St. Paul, MN 55155
[email protected]
(651) 296-4373







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