Minnesota Capitol leaders reach end-of-session deal with HCMC funding
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Leaders at Minnesota's politically divided Capitol have struck an end-of-session agreement that includes a "historic" infusion of "funds to stabilize" Hennepin County Medical Center.
Why it matters: The Level I trauma center, which serves residents from across the state, was at risk of closing without financial assistance.
The big picture: The bipartisan deal, announced Wednesday night, followed weeks of closed-door negotiations between DFL Gov. Tim Walz and leaders of the DFL-majority Senate and the tied House. Other major components include:
🏗️ A "significant" capital infrastructure bill to pay for public construction projects across the state.
🚗 A one-year rollback of car tab fee hikes approved under the recent DFL trifecta.
🏠 Expanded property tax refunds for homeowners.
🔎 Cash for the new Office of the Inspector General, the attorney general's fraud unit and outdated computer and IT systems.
🚨 Tens of millions of dollars for "safety and security" for lawmakers and the Capitol.
🕯️ Funding for several proposed memorials honoring slain Speaker Emerita Melissa Hortman.
Follow the money: Walz and caucus leaders agreed to spend an additional $660 million in the fiscal year that ends in June 2027, according to a signed copy of the topline numbers.
- Anticipated spending reductions and other changes down the road would reduce the state's looming structural deficit by 12%.
The fine print: A joint press release doesn't include key details of the spending and tax components — or spell out other policy proposals that made it into the final deal.
Yes, but: Rep. Esther Agbaje, a Minneapolis Democrat who was a lead negotiator on HCMC, said in a Facebook video that the supplemental budget agreement sends the hospital $205 million this year.
- Another $500 million could be available via a hospital reserve account in the years that follow.
What we're hearing: Multiple sources familiar with the deal confirmed to Axios that the HCMC relief will come from cash reserves — not a proposed increase to an existing Hennepin County sales tax.
Plus: The one-time property tax refunds will amount to about $125 million.
- The $1.2 billion bonding bill will include $10 million for St. Paul's Grand Casino Arena renovation and $40 million for Roy Wilkins.
- About $20 million is earmarked for school safety proposals, including an anonymous threat reporting line and behavioral health funds.
- Schools will also get $10 million to help fill a funding shortfall.
Zoom out: While a housing package that passed both chambers includes emergency rental assistance, sources said proposals to provide cash relief for businesses impacted by Operation Metro Surge didn't make the cut.
- There's also no deal on changes to gun laws proposed in the wake of the Annunciation shooting.
Context: Leaders from both sides set the expectation before the session even began that the list of big-ticket to-dos would be small, given the Legislature's near-even split and election-year dynamics.
- The capital investment package, known around the Capitol as the bonding bill, was a big question mark, given that it requires bipartisan support in both chambers.
What's next: Expect leaders to explain the deal in more detail on Thursday.
Once the bills are drafted, lawmakers in both chambers will debate and vote on the measures.
- They must finish their work by midnight Sunday.