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Minnesota Capitol Update
Written by Sarah Psick, AGC Consultant
End of the Regular Session
The 2025 regular legislative session ended on Monday night with more on the “to do” list than the list of what was finished. After the leadership agreement setting targets for the $66 billion budget was announced last Wednesday, we knew it would be difficult to finish all work on time.
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What passed…
Of the 17 finance and policy bills that have are in a conference committee (K-12 education and taxes have not passed both bodies), only eight bills made it through the conference committee process, were repassed, and are on the way to the Governor.
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Housing Budget and Policy, SF 2298: Provides rent assistance, funds the Family Homelessness Prevention and Assistance Program, includes funding for the down payment assistance program, and appropriates funds for workforce housing development.
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Judiciary/Public Safety Budget and Policy, HF 2432: Funds the judicial branch, public safety and corrections, funding for crime victim services, and law enforcement training. The bill also sets up the process for closing the Stillwater State Prison, which included in the leadership agreement.
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Veterans and Military Affairs, SF 1959: Fully funds operations at the state veterans homes, expands access to food programs for veterans, funds County Veterans Service Officers focused on suicide prevention, recognizes Special Guerrilla Units Veterans of the Secret War, and provides a pension offset for National Guard members on state duty.
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Legacy: Outdoor Heritage, Clean Water, Parks, and Arts & Cultural Heritage, HF 2563: Appropriates funds from the Legacy Amendment for Outdoor Heritage, Clean Water, Parks and Trails, and Arts and Cultural Heritage including the Historical Society, the Science Museum, children’s museums, zoos, and more.
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State Government Finance, SF 3045: This bill funds state agency operations, the legislature, constitutional officers, the Minnesota Historical Society and other administrative offices. The bill also includes the elections budget and policy issues, as well as local government policy changes. And the giant beaver will become the state’s fossil!
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Cannabis Policy, SF 2370: Updates Minnesota’s adult-use cannabis, low-dose hemp, and medical cannabis policies. The bill creates a hemp wholesaler license and allows vendors to offer samples at cannabis events.
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Human Services Policy, HF 2115: Expands the Health Care Bill of Rights, reduces burdens on mental health and substance use providers, strengthens anti-fraud provisions, and strengths protections for those in assisted living.
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What rolls to special session…
The following bills have not been resolved:
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Commerce Budget and Policy, SF 2216
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Higher Education Budget and Policy, HF 2431
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Health and Human Services Budget and Policy, HF 2435
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Human Services Budget, HF 2434
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Transportation Finance and Budget, HF 2438
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Jobs, Labor, & Workforce Development Budget and Policy, SF 1832
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Energy Budget and Policy, HF 2442
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Environment Budget and Policy, SF 2077
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Education (Pre-K, K-12), HF 2433/SF 2255
- Capital Investment/Bonding (no bill)
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Tax, HF 2437/SF 2374 (the tax bills did not pass the House or Senate). This afternoon, the House/Senate Tax Working Group met, and the Senate made an offer for consideration. They plan to meet again on Thursday.
Several controversial issues remain to be settled...changes to MinnesotaCare related to coverage for undocumented adults, private school funding, bonding, reinsurance, Paid Family and Medical and Leave Earned Sick and Safe Time modifications, election of Regents for the University of Minnesota, permitting reform, and the list goes on.
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What Happens Now...
The Governor will call a special session once an agreement is reached on the remaining budget bills. In order to avoid a state shutdown, these bills must be passed by July 1, but the Governor and leaders want to have the work completed by June 1 – the date layoff notices go out to state workers. Legislative leaders and the Governor laid out a plan to get the remaining work done.
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All outstanding budget areas will continue negotiations to finalize agreements acting as workgroups beginning May 20, 2025.
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Workgroups will function like a conference committee as much as possible and will follow the global budget target agreement dated May 14.
- Workgroups are encouraged to present offers at least twice daily.
- Some Workgroups have posted spreadsheets and policy language by their leadership-imposed deadlines, but most of the eventual special session work remains outstanding as of Friday afternoon, including transportation and capital investment.
To meet the deadline, committee chairs are invited to meet with the Governor and caucus leaders to discuss “sticking points”. A schedule has been established for those meetings.
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MnDOT-AGC Technical Committee Spring Meetings
AGC-MnDOT technical committees provide members with a biannual opportunity to communicate with MnDOT staff and fellow contractors on contractor issues, as well as hear project and program updates relevant to the subject area. These committees continue to foster AGC member partnerships with MnDOT and allow participants to network and share information. Each committee meets once in the fall and once in the spring in St. Paul. Upcoming meetings:
Alternative Procurement Committee
Tuesday, May 27
Concrete Committee
Wednesday, May 28
Contact Laura Ziegler if you would like to join any of the technical committees.
| | PROFESSIONAL DEVELOPMENT & EDUCATION NEWS | | |
Executive Circle Concludes for the Year
The 2025 Executive Circle has officially wrapped!
Over six powerful sessions, executive leaders from across Minnesota’s construction industry came together to sharpen their strategy, deepen their leadership, and challenge the status quo. Big thanks to Tina Nazier for creating a space for meaningful growth, bold thinking, and real connection.
Leaders from Park Construction Company, Magney Construction, Donlar Construction, Ulland Brothers, Engineering & Construction Innovations, Inc. (ECI), Palmer Soderberg, Inc., J & L Steel Erectors, Market & Johnson, and Doboszenski & Sons, Inc. gained not just insights, but the tools and relationships to translate strategy into real-world business impact.
Get your applications and nominations in for the 2026 series!
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Nominations/Applications Open for Professional Development
Early nominations and applications are open for the 2025-2026 AGC Professional Development Programs! Full schedules will be released in July.
Click the images below to learn more about each program and apply!
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AGC Edge: Online Training & Development
AGC Edge is AGC of America's online training platform. AGC of Minnesota members get significant discounts on training programs in Lean Constrution, Building Information Modeling (BIM), Project Management Developer Program (PMDP) and more!
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Join AGC Members in Duluth for Networking!
Come throw some axes, enjoy a beverage, and mingle with your industry peers at the summer networking event on July 16 at Blacklist Brewing Co. in Duluth!
Learn more and register
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Legal Risks of the Use of AI in the Design-Build Process
The rise of generative artificial intelligence, or AI, has coincided with an increase in the use of design-build methodology over the last decade. AI provides opportunities for efficiency, while simultaneously posing risks. Implementation of AI into daily workflows within design-build firms is possible but requires a thoughtful analysis of these potential risks. Click here to read more
Jesse R. Orman and Elise R. Radaj are shareholders of the Fabyanske Westra Hart & Thomson’s Construction Law Department. Jesse can be reached at 612.359.7637 or jorman@fwhtlaw.com. Elise can be reached at 612.359.7657 or eradaj@fwhtlaw.com.
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2026 Minnesota Construction Summit:
Call for Presentations
Do you have a recommendation for a speaker or topic you'd love to see presented at the 2026 Minnesota Construction Summit (February 18-19, 2026)?
Would you like to be a presenter?
Fill out this survey to give your input!
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MnDOT Request for Letters of Interest
I494 Airport to Highway 169 Design Build: Project 2
The Minnesota Department of Transportation (Metropolitan District) is soliciting Letters of Interest (LOI) from companies interested in providing Design-Build services for the design and construction of Phase 2 of the I494 Airport to Highway 169 project. This project involves the completion of the EZPass lane project on I494 from TH 169 to 24th Ave, as well as completion of the I35W and 82nd Street interchange. The project is scheduled to be let in fall of 2026 and is anticipated to be about $300M in construction cost. Major scope items include concrete paving, grading, retaining walls, five new bridges including the CPKC railroad bridge over 494, bridge rehabilitation work, drainage, watermain and sanitary sewer, and noisewalls. More information regarding the project can be found here.
Information regarding the Design-Build procurement, including preliminary design files, will soon be posted (or linked from) here.
Instructions for submitting a LOI.
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Environmental Assistance Loans Available
The MPCA is offering financial assistance for the capital costs (machinery and equipment) of eligible projects to help accelerate the application and/or improvement of environmental processes and technologies in Minnesota.
The MPCA partners with private financial institutions to offer participatory loans resulting in substantially reduced interest rates for projects that will improve the environmental and economic quality of Minnesota. The MPCA also offers direct, zero-interest loans for smaller projects. More information can be found on the environmental assistance loans webpage. Applications are accepted on a rolling basis.
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Mental Health & Suicide Prevention Course from AGC
AGC of America has launched an online, self-paced mental health and suicide prevention course designed to help construction supervisors provide resources and support for workers.
The roughly three-hour course covers key topics such as the risk factors for mental health issues and suicide in construction, how to cultivate a psychologically safe work culture, identifying and approaching employees in need, leadership and employee engagement, and human resources considerations.
The course is free for AGC members and $49 per person for non-members.
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Don't Miss These Events!
Register now or save the date for these upcoming AGC events:
| | Thank You to our 2025 Annual Partners! | |
Your Trusted Resource
Associated General Contractors of Minnesota
525 Park Street, Suite 110 | St. Paul, MN 55103
651-632-8929
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