Countdown to the 2025 Legislative Session: What’s at stake for Minnesota businesses

By Doug Loon
President and CEO
Minnesota Chamber of Commerce

We at the Chamber are paying close attention to the start of the 2025 legislative session, which begins next week. The balance of power at the Capitol, both in the House and Senate, is a focus of much attention and headlines. However, it's important to recognize the significant work ahead for the Legislature, and we encourage them to get organized and prepare for the session.

This year is a budget year, meaning the Legislature, in collaboration with the governor, must set the budget for the upcoming biennium, which starts in July. Between now and the adjournment date of May 19, the Legislature and the governor need to finalize the budget. Two years ago, lawmakers began their budget work with a nearly $18 billion surplus. By the end, that surplus was gone, and taxes had been raised by approximately $10 billion.

This new Legislature faces several steps to constitutionally balance the budget before adjournment. Failing to do so could result in a special session—something no one wants. A government shutdown due to budget impasses is equally undesirable.

Currently, the state's budget office forecasts that spending will exceed revenue in the next biennium. Fiscal discipline is essential to avoid further challenges. For the business community, raising taxes could slow economic growth, hinder the state's economic potential, and make future budget balancing even harder. To ease this process, it’s critical to avoid tax increases and new regulatory mandates that could stifle business growth.

The balance of power in both chambers adds complexity to the session. In the Senate, a tie at 33-33 follows the unfortunate passing of former Senate Majority Leader Carrie Dziedzic last month. This situation requires the Senate to define its leadership and organization.

In the House, Republicans currently hold a 67-66 majority after a court ruled that the DFL candidate in District 40B did not meet residency requirements and could not be seated. Special elections in the coming months will further shape the balance of power.

Regardless of the legislative makeup, there is much work to do on behalf of the business community. We appreciate your support and engagement as we navigate these challenges.

Next week marks our annual Session Priorities Dinner, with over 1,600 attendees expected. This event brings together the business community, community leaders and elected officials from across the state. It serves as a vital forum to discuss Minnesota's economic potential, the importance of a balanced budget and the need to avoid additional taxes and regulations that hinder success. If you would like to attend and have not registered yet, I recommend you do so as we are almost sold out!

Thank you for your continued support of the Minnesota Chamber! Be sure to listen to our Minnesota Business Podcast next week where I’ll discuss the latest happenings as session kicks off next Tuesday.