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Legislative Update – December 4, 2025

Dear neighbors,  

Today, the Minnesota Office of Management and Budget released the November Economic Forecast [ [link removed] ]. The report shows that Minnesota’s budget and economic outlook have remained stable in the current two-year cycle with a small surplus; however, structural budget challenges remain due largely to increased costs in health and human services. 

MPR Article [ [link removed] ]

The single biggest takeaway is that the same health care cost increases that are hitting family budgets due to the federal Medicaid cuts are now impacting the state budget. American workers and families are experiencing an affordability crisis, and that is reflected in our state’s economic forecast. 

This forecast will help us better plan for the future amidst federal uncertainty. We can’t backfill every cut from the federal government, but we can continue to make smart investments and craft a budget that’s fiscally responsible now and into the future. 

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Paid Leave Launches January 1

The U.S. is the only developed country in the world that doesn’t guarantee some form of paid leave, forcing most workers to make impossible choices between a paycheck and caring for a new child, an aging parent, or their own serious health condition. *But in Minnesota, that’s about to change with the launch of Paid Leave on January 1, 2026. As we prepare for Paid Leave to take effect, I want to share the basics of the new law, how it impacts you, and how to use it next month.* 

Paid Leave – which DFLers in the Legislature and Governor Walz passed in 2023 – provides partial wage replacement for up to 12 weeks of paid medical leave for your own serious health condition, including pregnancy and recovery. It also provides up to 12 weeks of paid family leave to care for a new child or a seriously ill loved one. You can watch a short video explaining how the program works here [ [link removed] ]. 

Paid Leave Video [ [link removed] ]

The program will have a small cost but offer powerful benefits. The premium rate for 2026 will be 0.88%, with employers responsible for at least half. If the employer chooses to split the premium with the employee, each will pay 0.44%. For an employee earning the average annual income, this amounts to about $5 per week each for the worker and the employer. Paid Leave will level the playing field for small businesses that have wanted to offer this benefit but haven’t been able to do so sustainably. 

*DEED has developed helpful toolkits with resources for workers and businesses alike*. The toolkit for workers [ [link removed] ] can help you find out if you’re eligible for coverage, when Paid Leave can be used, how much time you can take, how you’ll be compensated, and more. The toolkit for businesses [ [link removed] ] includes information about upcoming public engagement events, premium rates and contributions, equivalent plans for Paid Leave, and other FAQs.  

This isn’t a new concept – twelve other states and the District of Columbia currently offer Paid Family and Medical Leave. Despite Republicans trying to weaken, delay, and repeal this hard-fought progress before families could even benefit from it, DFLers succeeded in protecting this hard-fought win for middle-class Minnesotans. 

For many of us, missing a single paycheck means the difference between staying above water and facing dire financial challenges, and that’s particularly true considering the affordability crisis we’re facing now, with prices rising for just about everything in our daily lives. Paid Leave is one major step to provide some relief, ensuring you’ll no longer have to risk your economic security to look after yourself, care for a newborn, or tend to a loved one. 

This program has truly been years in the making, and I’m so excited for families in our community and throughout Minnesota to finally have peace of mind. *As we get closer to the program’s rollout, I encourage you to check out all the resources available at **pl.mn.gov* [ [link removed] ]*.* 

PFML Graphic

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Inver Grove Heights Tree Lighting

Join Inver Grove Heights for the kick-off of the holiday season with the official tree lighting ceremony! The Tree Lighting Ceremony will take place Friday, December 5, from 6-7 p.m at the NE end of the Veterans Memorial Community Center (8055 Barbara Ave, Inver Grove Heights, MN 55077). 

City staff will make a few brief remarks, followed by a vocal performance by Vicki Kueppers. Join us inside after the ceremony for hot beverages and refreshments. No registration necessary. Free to attend. Dress for the weather! 

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Dakota County Historical Society

Do you enjoy history and want to find a way to get more involved? Join the Dakota County Historical Society Board! 

Each board member serves a two-year term, with a maximum of three terms before they must step down. Board members work closely with staff to help lead the organization and provide volunteer assistance during events.  

If this sounds like something you are interested in pursuing, please complete a Statement of Interest form [ [link removed] ] and return it to DCHS.  

DCHS

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Stay in Touch!

Please continue to share your questions, ideas, and feedback throughout the year. You can reach me by email at [email protected] or by phone at 651-296-6828.

For more regular updates, you can subscribe to these regular legislative updates if you haven’t already, here [ [link removed] ], and you can also “like” and follow my official State Representative Facebook page [ [link removed] ].

Sincerely,

Rick Hansen
State Representative






*Representative Rick Hansen*

5th Floor, Centennial Office Building
658 Cedar St.
Saint Paul, Minnesota 55155

Phone: 651-296-6828
Email: [email protected]
Website: [link removed]







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