Leaders at Minnesota's divided Capitol have struck an end-of-session agreement that includes a "historic" infusion of "funding 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 deal, announced last night, emerged from 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🔎 Cash for the new Office of the Inspector General, the attorney general's fraud unit and outdated computer and IT systems.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 memorials honoring slain Speaker Emerita Melissa Hortman.

Follow the money: Walz and top caucus leaders agreed to spend an additional $660 million in the fiscal year that ends in June 2027, according to a signed framework.

• A decision to leave a much of the current surplus untouched and other changes to spending would reduce the state's looming structural deficit by 12%.

The fine print: A joint press release doesn't include key details — or indicate whether other policy proposals 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 is expected to include $10 million for St. Paul's Grand Casino Arena renovation and $40 million for Roy Wilkins — far short of the $200 million the city wanted.
• About $20 million is earmarked for school safety proposals, including an anonymous threat reporting line and behavioral health funds.

Zoom out: While a housing package that passed both chambers includes emergency rental assistance, cash relief for businesses impacted by Operation Metro Surge apparently didn't make the cut.

What's next: Expect leaders to explain the deal in more detail today.

• All bills must pass by midnight Sunday.

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Sun Country Airlines officially became a subsidiary of Las Vegas-based Allegiant Air yesterday after the companies closed their $1.5 billion merger.

Why it matters: This acquisition is going to mean big changes for many of the airline's 3,300 employees, and it will also spell the end of the Sun Country brand — eventually.

What they're saying: Some back-office corporate positions will remain at Sun Country's office in an MSP Airport hangar, but outgoing CEO Judd Bricker told Twin Cities Business that many of the jobs will be reassigned to Las Vegas, so employees can either move or take severance.

• "A lot of people don't want to leave Minnesota (for those jobs)," Bricker told the magazine.

What we're watching: It'll take about 18 months for Allegiant and Sun Country to operate under a single FAA certificate, so planes will keep Sun Country branding during the transition.

• The airlines say it'll also still be several months before their websites merge.

The intrigue: The big question for MSP travelers is what this means for service, since Sun Country is the second-largest carrier at the airport and has offered a lower-cost alternative to Delta Airlines.

• Bricker told TCB the deal will add more seats and more markets to MSP.

Yes, but: Thrifty Traveler aviation expert Kyle Potter wrote that "a long history of airline mergers suggests that there could be reductions in Minneapolis down the road."

Keep reading

🇲🇽 The Vikings will play the San Francisco 49ers in Mexico City on Nov. 22. The rest of their schedule will be released today.

💼 Minnesota Chamber of Commerce CEO Doug Loon will retire by the end of the year, ending an 11-year tenure as leader of the business group.

🍽️ The owners of Nolo's Kitchen & Bar plan to open a restaurant called Olive & Elm in downtown Waconia by the end of the summer. (Minneapolis/St. Paul Business Journal)

📈 A proposal to ban prediction markets passed both chambers as part of a broader bill this week and now heads to the governor's desk for a signature. (MPR News/Background via Axios)

American teens are getting less sleep than ever, new research from the University of Minnesota School of Public Health shows.

Why it matters: U of M Professor Rachel Widome, a lead author of the study, said the findings point to a "public health crisis."

By the numbers: Just 22% of 18- and 19-year-olds reported getting the recommended 7 hours of sleep between 2021 and 2023.

• Among 12- and 13-year-olds, the share was just over 37%.

Plus: Black and Latino teens and teens whose parents have less formal education were increasingly less likely to get enough sleep.

What we're watching: While there isn't a magic fix, researchers say later school start times can help.

• "Without broader structural changes, we risk setting up a generation of young people for long-term challenges in health, learning and overall well-being," Widome said.

🗓️ Mark your calendar with our Event Board.

Pagliacci at Ordway Center for the Performing Arts: Minnesota Opera's "Pagliacci" runs through May 17 at the Ordway, where painted smiles and colorful costumes belie infidelity and betrayal.

Dave Ryan, who spent more than three decades shocking morning listeners on KDWB, is retiring on May 22.

Why it matters: Ryan has been a fixture on Twin Cities airwaves since joining the Top 40 station in 1993.

• "Being a part of your morning and being welcomed into your life has meant more to me than I can ever express," he said in a press release.

What we're watching: There's no word yet on who will replace Ryan in the big chair, or what the retirement means for co-hosts Jenny Luttenberger, Vont Leak and Bailey Hess.