Gov. Tim Walz is pitching his first budget under the new Trump era as a counterweight to the incoming president’s threats to impose tariffs, which he says will raise costs on everyday Minnesotans. His plan would lower Minnesota’s sales tax rate for the first time in state history by 0.

Gov. Tim Walz on Thursday pitched a tighter two-year budget, complete with spending pullbacks and other measures to keep a potential deficit at bay. He also proposed a lower state sales tax rate but called for extending the tax’s reach to financial services.

Minnesota Gov. Tim Walz called for spending cuts Thursday in a $65.9 billion two-year budget proposal that includes a modest reduction in the overall state sales tax but new taxes on services like legal and financial advice.

ST. PAUL, Minn. (AP) — Gov. Tim Walz urged lawmakers Thursday to end a power struggle that has disrupted the first week of Minnesota's 2025 legislative session, but expressed support for House Democrats' boycott of the chamber to block Republicans from wielding power.

Minnesota Gov. Tim Walz presented his two-year budget proposal on Thursday amid an ongoing power struggle at the Capitol.

Governor Walz’s party has lost control of the Minnesota Legislature and faces mounting criticism as a budget deficit looms.

In regards to the statewide sales tax, Walz is proposing a .75% reduction to the tax rate alongside provisions to expand the sales tax base to close so-called "loopholes" for service providers, such as bankers and attorneys.

Walz focused on tackling fraud, cutting state spending and long-term fiscal stability in Minnesota’s 2026-27 budget.

Minnesota Gov. Tim Walz's proposed budget offers the first-ever cut to Minnesota's sale tax rate — but it would also expand the tax into new professional services.

Minnesota forecasted a short-term surplus of $616 million through 2026-2027, $1.1 billion less than previously estimated.

It’s been a tense start to the legislative session, but local representatives say they still have big goals for the coming months. Whether they’re tied to education, government operations, the budget or other issues,