Axios Twin Cities

January 05, 2026
Welcome back! We'd wish you a happy new year, but we follow Larry David rules here.
- Cloudy with a high around 34, per NWS.
🎂 Happy birthday to our Axios Twin Cities members Steve Kuzmeski and Bill Gafford!
Situational awareness: Gov. Tim Walz will hold an 11am news conference amid intensified scrutiny over fraud in state programs and questions about his own political future. Go deeper via the Star Tribune.
Today's newsletter is 1,123 words, a 4-minute read.
1 big thing: Vibe watch at City Hall
The Minneapolis City Council kicks off a fresh term today with four new members — and the potential for a very different vibe.
Why it matters: Mayor Jacob Frey won re-election, and his left-wing critics lost a council seat, costing them the veto-proof majority they used for two years to seize the reins at City Hall.
- In the last two years, Frey vetoed more ordinances (12) than his previous six years in office combined. The council overrode that veto five times.
State of play: Frey's allies also didn't win a majority, setting the stage for either gridlock or a new era of compromise — and the December budget deal suggests Frey and the council are ready to bargain.
- Instead of mustering a veto-proof majority one last time to force through the council's budget, Council VP Aisha Chughtai — an outspoken Frey critic — and the mayor's staff ground out a deal.
Friction points: December's budget negotiations also highlighted several areas of ongoing tension that are likely to carry over into the new term.
- The council has ramped up pressure on the police department over overtime-driven cost overruns.
- Frey, meanwhile, vetoed a council proposal to provide portable bathrooms to large homeless encampments.
What we're watching: Several council members have also promised to propose regulations on Waymo.
- And that's just in the near-term: A re-write of the city's zoning plan looms on the horizon — as does a potential proposal for a new Wolves/Lynx arena.
What's next: Ward 1's Elliott Payne looks like a strong bet to retain the council's presidency after securing the support of swing vote Jamal Osman, who is running for council VP.
2. 🏈 The Vikings' offseason to-do list
A disappointing Vikings season came to a close yesterday with 16-3 win over the Packers, setting up an offseason full of big questions.
The QB plan: J.J. McCarthy looked awful in the first half of the season and has struggled to stay healthy, missing 24 out of 34 games since being drafted in 2024.
- His progress in the second half of the season is a good sign, but the Vikings will need to find a veteran backup capable of taking over if he falters again — or a younger Plan B project.
B-Flo's future: Defensive coordinator Brian Flores, a brilliant schemer who rebuilt the defense over the last three years, will be a free agent and could be a candidate for head coaching jobs.
Veteran cut watch: Minnesota went all-in on the 2025 season, signing several high-priced free agents in hopes of making a run at a title. Now the team will be forced to cut payroll to get under the salary cap.
- Cut candidates include defensive tackle Javon Hargrave, running back Aaron Jones and tight end T.J. Hockenson.
3. The Spoon: Trump's false claims about Hortman
Top Democrats condemned President Trump for promoting "soullless" and "outrageous lies" after he shared a video amplifying baseless conspiracy theories about Speaker Emerita Melissa Hortman's murder. (Axios)
- Her children issued a rare statement asking the president to take down the post. "Words matter. Sharing fake news is dangerous," Colin Hortman wrote, noting that his parents were "killed by a man who believed conspiracy theories."
🔎 Minnesota's Department of Children, Youth and Families says it is investigating at least 55 day care centers, including four featured in conservative influencer's viral video alleging fraud. (Star Tribune/Background via Axios)
- Nine of 10 from the video were "operating as expected" during compliance checks conducted last week.
🏒 Sweden and Czechia face off in tonight's World Junior hockey championship gold medal game at Grand Casino Arena.
🎿 Afton native Jessie Diggins won another title in the Tour de Ski. (MPR News)
💼 New St. Paul Mayor Kaohly Her is beginning her first full week on the job. (Background via Axios)
4. Stat du jour: Paid leave starts now for some
About 12,000 Minnesotans have applied to take time off under the state's new Paid Family and Medical Leave program.
State of play: About 4,000 of the 6,300 applications processed as of Friday have been approved, per the Department of Employment and Economic Development.
- Around 3,500 were for parents who welcomed babies in 2025.
How it works: Most Minnesota workers are now eligible for up to 12 weeks off with partial pay to care for a new baby, a sick loved one, or their own serious health issues.
- The amount of pay, which varies based on income, maxes out at about $1,400 a week. Total time off is capped at 20 weeks a year.
Friction point: Critics, including major business groups, are concerned about costs — including the a 0.88% payroll tax — and staffing impacts.
- Plus: Republican legislators are worried about the potential for fraud and abuse.
The big picture: DEED expects to approve about 130,000 applications in year one.
- Deputy commissioner Evan Rowe told reporters that the high volume of initial applications is attributed in part to an early launch of the portal and is "not out of line with the projections."
- Commissioner Matt Varilek said he's confident that anti-fraud measures, such as identity verification and provider approval for medical claims, are working.
What we're watching: Whether officials need to raise the payroll tax rate to cover demand, as has been the case in other states.
Go deeper via the Minnesota Reformer
5. 👋 1 fun thing to go: How we signed off in 2025


👋 Kyle here. In 2025, I went to lots of coffee shops and hockey games — and Japan, too! — so it's no surprise that 🏒, ☕️ and ⛩️ ranked among the most frequently-used emojis in my newsletter "outros" last year.
- That's what we call our sign-offs at the end of each newsletter to offer glimpses of our personal lives.
The big picture: Our most-used emojis fit us all:
- Nick is our resident expert on the Vikings (🏈) and Wolves (🏀), and also our most avid cyclist (🚴) and weather-watcher (❄️).
- Torey consumed a lot of pop culture (📺, 🎤) and pizza (🍕)
- And Audrey? Well, she's the feeler of the group (😭, 😁, 🫨).
The bottom line: Here's to more fun in 2026!
🐶 Torey is rocking this new sweatshirt.
🥃 Kyle enjoyed his drinks at Earl Giles' holiday pop-up this weekend — but for the rest of the month, he's drying out!
🎿 Nick taught his second grader how to ski. She loves it. He's wondering if this is the biggest financial mistake of his life.
📸 Audrey is having lots of fun with her new Kodak Charmera, a digital camera that fits on a keychain!
This newsletter was edited by Lindsey Erdody.
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