State budget deal folds HCMC rescue into tax-cut package
Gov. Tim Walz and legislative leaders announced a bipartisan budget deal on May 13 at the Capitol in St. Paul that folds a rescue for Hennepin County Medical Center into a tax-cut and infrastructure package.[1]
The agreement includes a "historic" stabilization investment in Hennepin County Medical Center and added support for rural and critical-access hospitals meant to blunt federal funding cuts.[1] It also delivers property tax refunds, a reduction in car-tab fees and a major infrastructure bill, and leaders from both parties said the package saves HCMC while providing statewide affordability relief.[1]
Lawmakers' talks centered on offsetting federal funding cuts that had threatened HCMC and other safety-net hospitals, pushing leaders to combine hospital aid with tax relief.[1] Negotiators said packaging the rescue with popular tax measures helped build bipartisan support and speed approval in a session aimed at both health and affordability wins.[1]
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📌 Key Facts
- Gov. Tim Walz and legislative leaders reached a bipartisan budget deal announced May 13, 2026, at the Capitol in St. Paul.
- The agreement includes a "historic" stabilization investment in Hennepin County Medical Center and additional support for rural and critical-access hospitals, aimed at offsetting federal funding cuts.
- The package also features property tax refunds, a reduction in car tab fees, and a significant infrastructure bill, with both parties publicly characterizing the deal as "saving HCMC" while providing statewide affordability relief.
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