Minnesota

POLITICAL HOMEPAGE

2026 Legislative Summary

May 27, 2026

Bonding Bill

In traditional fashion, the 2026 Legislature waited to pass a bonding bill until just hours before adjournment. Despite the importance for Carpenters to have this work and citizens to have these assets cared for, this bill continues to become a political football near the end of every session. Many thanks to all of leadership who have made capital investments a priority for each year of this biennium.

This year’s bill was $1.24 billion in capital investment throughout Minnesota. This bill received 182 total legislative votes out of 201. Unique to this bill are changes to the vehicle registration taxes which were part of the deal struck between Governor Walz and legislative leaders several days before the end of session. This bill will reduce the Highway User Tax Distribution Fund by $119 million in Fiscal Year 2027 and $135 million in Fiscal Year 2028. It also allocates $800,000 for a memorial to the late Speaker Emerita Melissa Hortman. General obligation bonding projects in this year’s bill include:

• $64.81 million for asset preservation at Minnesota State;
• $47 million for local road improvement fund grants;
• $45.17 million for renovations to the Minnesota Veterans Home Hastings Campus;
• $40 million for asset preservation at the University of Minnesota;
• $40 million in for improvements to the Roy Wilkins Auditorium in St. Paul;
• $39.21 million for Department of Corrections asset preservation;
• $35 million for the first phase of the St. Paul Campus Center at the University of Minnesota;
• $30 million in drinking water grants;
• $30 million for Department of Natural Resources’ asset preservation;
• $26 million for clean water grants;
• $25 million for the local bridge replacement program;
• $17.5 million for public housing rehabilitation;
• $15 million for lead service line replacement;
• $10 million for emergency shelter capital grants;
• $10 million for the Mahnomen hospital
• $9 for flood hazard mitigation; and
• $6 million for a Lake of the Woods County jail.

Taxes

Some might contend that the number of proposed local option sales tax proposals would have given the Building Trades more work than a typical bonding bill. However, not only were there no local option sales tax proposals included, but there were also additional items left out that could have resulted in significant work hours for members. The tax bill did not include an extension and expansion of the .15 percent ballpark sales tax in Hennepin County, that originally supported construction of Target Field, to cover HCMC’s funding struggles. This funding would have also allowed for construction improvements beginning in 2029. St. Paul’s sales tax that would fund improvements to Grand Casino arena was also not included in the bill.

This year’s tax bill did include $500,000 in Fiscal Year 2027 for a study regarding nuclear generation. The study will need to be completed by next February in time for the 2027 legislative session.

The tax bill also includes a $75 million transfer to the driver and vehicle services operating account in Fiscal Year 2027 from the General Fund. This is part of the $254 million funding that will deliver leadership’s agreement to reduce vehicle registration fees in Minnesota. This will equate to a $145 reduction in tab fees on a $50,000 vehicle.

Hennepin County Medical Center Funding (HCMC)

The 2026 Legislative Session provided funding for HCMC is part of a nearly $660 million agreement between House and Senate leaders and Gov. Tim Walz.  

The legislature passed $205 million from the state’s general fund to stabilize the funding for HCMC this year. The HCMC deal also includes an additional $500 million over five years for healthcare systems and hospitals with financial hardship who are at risk of closure due to uncompensated care. An additional $30 million will be set aside for distressed hospitals across Minnesota. The bill also establishes a new board that consists of between 11 and 15 directors with 70% of members with the professional training and expertise needed to govern a health system and safety net hospital.

HCMC accounts for 20 percent of all uncompensated care in Minnesota, according to Hennepin Healthcare.

Grand Casino Arena

The $600 million Grand Casino Arena/Roy Wilkins Auditorium project needed the extension of St. Paul’s half-cent sales tax to get completed.  That did not get passed this year. The city’s full request would have amounted to $200 million in state funding. The facility is used by Minnesotans from border to border with the MN WILD only occupying the arena for one-third of the year. It also generates enough sales tax revenue from surrounding businesses to cover bond payments to help get this project across the finish line.

So, what did get passed? The legislature passed $50 million as a start of the planning for the construction of the arena ($10 million) and improvements to the auditorium ($40 million). This leaves the city short $150 million of the total amount needed to start the project.

Housing

The 2026 Housing omnibus bill includes a provision allowing cities and counties the option to invest in fixed income mutual funds with a primary focus on housing. These cities and counties already have the authority in statute to invest in equity index funds which are far riskier. Investing in a fixed income fund focused on housing would allow additional multi-family housing to be built in Minnesota by Carpenters. There are several funds with a proven track record of building additional housing in Minnesota.

Elk Creek Solar - Motion Granted

April 13, 2026

Read Full Ramsey County District Court Ruling >>

The Ramsey County District Court judge reviewed the evidence and arguments presented at a January 2025 hearing. On Monday, April 13th, the court granted Elk Creek’s petition. The decision clarified that the court found sufficient grounds to immediately halt DLI’s enforcement efforts while affirming Elk Creek’s interpretation of the governing statutes.

Additionally, the judge ruled that the Elk Creek Solar project, as permitted by the Minnesota Public Utilities Commission, operates on the “supply side” of the service point, placing it under the jurisdiction of the NESC rather than DLI. The court held that there is an exemption in Minnesota Statute that applies to Elk Creek’s project.

Consequently, the court permanently prohibits DLI from enforcing electrical permit or inspection actions against Elk Creek or similar non-public utility entities working within the scope of this statutory exemption. This ruling paves the way for numerous large-scale projects to be completed by developers who use primarily union carpenters. The misinterpretation and application of the statute has prevented us from doing years worth of solar work.