Minnesota legislators consider rolling back or revising some laws passed by DFL in 2023

Minnesota legislators are debating whether to roll back or revise some signature laws passed by Democrats two years ago as they race to reach a budget deal in the final weeks of their session.

The proposed policy pullbacks have opened a glaring partisan divide in the tied Minnesota House, imperiling budget negotiations. Republicans are pushing to repeal laws that provide summer unemployment insurance to hourly school workers and health care to undocumented immigrants, among other changes, while Democrats are defending the programs they created when the state had a massive budget surplus in 2023.

In the DFL-controlled Senate, a bipartisan group of legislators is proposing changes to Minnesota’s paid family and medical leave and earned sick and safe time laws.

The review of 2023 laws comes as the Legislature grapples with the harsh reality of divided government and a projected budget deficit. After being shut out of decision-making the past two years, House Republicans are using their newfound power to try to rework DFL-enacted programs they believe went too far.

“The mandates that were put on our schools by Democrats here in the state of Minnesota, the pressure and the mandates that were put on businesses all the way across the board, that’s what we are concerned with right now,” House Speaker Lisa Demuth, R-Cold Spring, said Wednesday.

Legislators are facing a May 19 adjournment deadline to get their work done. They must pass a new two-year budget before July to avoid a government shutdown.

A House education spending agreement announced Monday set a 2028 expiration date on a summer unemployment insurance program for hourly school workers such as bus drivers, custodians and teachers’ aides. Minnesota established a $135 million fund in 2023 to cover the initial costs of the unemployment insurance benefits, but that money is drying up and school districts are concerned about picking up the tab in the future.

Democrats on the House Rules Committee blocked the budget bill from being sent to the floor. Rep. Mike Howard, DFL-Richfield, accused his GOP colleagues on the committee of trying to “stick it to working people.”

“You don’t like that we made sure that our paraprofessionals, our schoolbus drivers, the people that care for our kids, are able to get insurance. You don’t like that we provided paid family and medical leave,” Howard said. “You want to go back and relitigate what happened in 2023, but our job is to balance this budget.”

Republicans scolded their DFL counterparts for going back on the compromise bill.

“Democrats have apparently reneged on that agreement. That’s a big setback in terms of being able to get our work done by May 19,” said Rep. Harry Niska, R-Ramsey.

House Republicans and Democrats are also sharply divided over a new program allowing undocumented immigrants to enroll in MinnesotaCare, a state-funded health care program that provides coverage to low-income residents. GOP lawmakers want to repeal the program, saying it could blow a hole in the state’s budget.

But a Minnesota Department of Human Services spokeswoman said only a fraction of the people enrolled have made claims so far, and “there is no evidence to suggest expenditures will be significantly higher going forward.”

Demuth and House DFL Leader Melissa Hortman said Wednesday the debate over that program is still unresolved: “It is a sticking point,” said Hortman, DFL-Brooklyn Park.

Earlier this week, legislators in the evenly split House passed a transportation bill that included a provision delaying a law requiring major state highway projects to account for greenhouse gas emissions by 3½ years. The groundbreaking law passed by Democrats in 2023 just took effect on Feb. 1, but House Republicans argued it’s “reckless” and not ready for implementation.

The law calls for Minnesota Department of Transportation (MnDOT) planners to take into account climate impacts, including greenhouse gas emissions, when considering big highway projects. If those calculations do not meet MnDOT’s targets, the project could be retooled or in some cases abandoned.

MnDOT Commissioner Nancy Daubenberger spoke in favor of the law last month and said a delay is “concerning.” The House Transportation Committee co-chair, Rep. Erin Koegel, DFL-Spring Lake Park, apologized to her Democratic colleagues for including the greenhouse gas law’s delay in the bill, saying, “I am 100 percent committed to making this a better bill when it comes back to us.”

In the Senate, a couple of Democrats have teamed up with Republicans to propose changes to laws passed two years ago.

Sen. Nick Frentz, DFL-North Mankato, has introduced a bill to exempt small businesses with 15 or fewer employees from the state’s paid family and medical leave law, which will take effect on Jan. 1, 2026.

Businesses have raised concern about the cost burden of the program that’s funded by a 0.88% payroll tax split between employers and employees. The law allows workers to take weeks or months off with partial pay after having a child or when they or their family member have a serious health condition.

Unlike some House Republicans who have pushed to delay the law’s implementation or repeal it altogether, Frentz said he thinks the program will be ready to go next year — with some small tweaks.

“Minnesota is going to start its paid family and medical leave on Jan. 1, 2026, that much I think is clear. And I think it will be a good program,” Frentz said. His bill hasn’t received a hearing, but it could be folded into a larger omnibus package.

House Republicans including Demuth have said they’d like to see some changes to the paid family and medical leave and sick and safe time laws. Hortman said she has “no appetite” for changes to paid family and medical leave.

Walz expressed little interest in changing the paid family and medical leave law, saying this week that he’s focused on implementing the program and is “not interested in weakening it.”

The governor said he’s open to discussing the summer unemployment insurance program for hourly school workers but doesn’t think he wants to repeal it.

As for the health care program for undocumented immigrants, Walz said he’s willing to discuss it.

“I hear [Republicans] on this. I’m willing to work with them and see what we can do,” Walz said.