What the 2025 session outcomes mean for your business

By Doug Loon
President and CEO
Minnesota Chamber of Commerce

I’m coming to you this week from Washington, D.C., where we’ve been hosting our annual D.C. Fly-In. We’ve had a great group – more than 60 business leaders from Minnesota – joining us for meetings with the Environmental Protection Agency, Small Business Administration and our congressional delegation. It’s a chance to elevate Minnesota’s business priorities on the national stage.

Back home, the Legislature wrapped up its special session early Tuesday morning. There was some speculation they wouldn’t be able to get it done in one day, but in fact, they did. They passed a budget, a bonding bill and moved forward on a number of Chamber priorities.

First and foremost, meaningful permitting reform is now headed to the Governor’s desk. This is a significant step forward in improving efficiency for industrial permits critical to economic development while maintaining protections for Minnesota’s natural resources. These reforms reflect recommendations from the Minnesota Chamber Foundation’s permitting study, and we’re pleased to see bipartisan support for this effort. There’s more work to do, but this is real progress.

Another big win came in the form of tax policy, specifically the expansion of the Research and Development Tax Credit, which is now partially refundable. This helps support innovation and investment in R&D across businesses of all sizes. In addition, state incentives for data centers were preserved and strengthened, protecting current investments and encouraging new development in this fast-growing sector.

The reinsurance program was also extended, helping to stabilize the individual health insurance market and reduce cost pressures on employers and employees. That’s a win for business and for Minnesotans who rely on affordable healthcare.

There were also a number of harmful workplace mandates that did not advance, including proposals to allow striking workers to collect unemployment insurance, raise the minimum wage to $20/hour, and impose new job posting and CEO pay ratio requirements. We were able to prevent many of these measures from becoming law.

However, in the area of workplace regulations, progress was limited. While there were minor administrative adjustments to the earned sick and safe time mandate, and a slight reduction in the payroll tax cap for paid family and medical leave, more significant changes were not adopted. The law remains set to take effect on January 1, 2026, and we will continue working to make it more workable for employers, especially small businesses.

In total, 14 bills were passed in the special session, finalizing a $66 billion budget. The session reflected a more balanced legislative environment, with a tied House and a one-vote majority in the Senate. The Chamber appreciates lawmakers who worked to make thoughtful, business-minded decisions, protecting the private sector while ensuring Minnesota can grow and thrive.

We kept some harmful proposals off the table, made measurable progress in key areas and set the stage for more work to come in next year’s session. Stay tuned for detailed bill summaries in the days ahead, and make sure to join us during our Statewide Policy Tour happening throughout June. We’ll be visiting communities across the state to talk about the outcomes of the session and what they mean for your business.

We appreciate your support and your partnership in standing up for Minnesota’s economic future. We look forward to getting back to Minnesota today and continuing to advocate on your behalf. I will catch up with you on next week’s episode of the Minnesota Business Podcast.