Restoring stability and advancing growth as Minnesota enters a critical legislative session

By Doug Loon
President and CEO
Minnesota Chamber of Commerce

It has been a very busy week at the Chamber, with an even busier week ahead. Before previewing what’s coming next, I want to take a moment to reflect on the recent immigration enforcement surge here in Minnesota.

We are encouraged that cooperation between local, state, and federal officials has prevailed and that we are now moving toward restoring stability in our communities for employers, employees and the families who power our economy. Predictability and public safety are essential components of a successful state. Reducing uncertainty allows businesses to refocus on serving customers, supporting their workforce and keeping Minnesota’s economy moving forward.

We were pleased with the recent announcement from Border Czar Tom Homan and look forward to continued reassurance that the drawdown will proceed in the coming days and weeks. Our priority is to ensure that Minnesota’s economy remains stable and positioned for long-term success.

Turning to the 2026 legislative session, which begins next Tuesday, we are entering a period that presents both real strengths and real challenges. Rising costs and demographic realities make pro-growth policies more urgent than ever. This aligns directly with the Chamber’s Economic Imperative for Growth strategy. A strong private-sector economy funds our quality of life, and this session must focus on competitiveness – not complacency.

Our core message is simple: Minnesota must champion investment, job creation and economic growth if we want long-term success.

On taxes, there is a clear opportunity for improvement. Recent federal policy changes trigger the need for state conformity, including provisions such as bonus depreciation, Section 179 expensing for small and mid-sized businesses, and research and development expensing. These policies encourage business investment and growth, particularly for small businesses, and failure to act would put Minnesota at a disadvantage.

We are also hearing consistently from members about workplace mandates such as paid family and medical leave. As implementation moves forward, practical adjustments are needed to ensure the program works effectively for both employers and employees.

Last session demonstrated that bipartisan progress is possible. Permitting reforms supported by the Chamber were signed into law through an evenly divided Legislature. That progress shows that balance and collaboration can reduce delays and uncertainty in the environmental permitting process. While more work remains, that success provides a template for what can be achieved this session.

Cost pressures remain a major concern. Energy, healthcare, and housing costs all directly affect employers trying to grow and workers trying to afford life in Minnesota. Policymakers must recognize that costs matter as they consider legislation in the weeks ahead.

My hope is that both sides of the aisle will come together to address these priorities and help unleash Minnesota’s full economic potential. Our upcoming Session Priorities event next Tuesday will give business leaders an important opportunity to share these concerns directly with policymakers as the session begins.

Thank you for your continued support of the Chamber. We look forward to connecting with you on next week’s episode of the Minnesota Business Podcast. Have a great weekend!