Gov. Tim Walz is pitching his first budget under the Trump era as a counterweight to the incoming president’s threats to impose tariffs, which he says will raise costs on everyday Minnesotans. His plan would lower Minnesota’s sales tax rate for the first time in state history by .

Walz focused on tackling fraud, cutting state spending and long-term fiscal stability in Minnesota’s 2026-27 budget.

By Dana Ferguson Gov. Tim Walz on Thursday pitched a tighter two-year budget, complete with spending pullbacks and other measures to keep a potential deficit at bay. He also proposed a lower state sales tax rate that would be widened to include some financial services.

ST PAUL, Minn. — Minnesota DFL Gov. Tim Walz and Lt. Gov. Peggy Flanagan are set to unveil their administration's budget plan for 2025 during a news conference on Thursday.

Governor Tim Walz and Lieutenant Governor Peggy Flanagan presented their 2025 biennial budget, which included the first sales tax in the state's history.

Governor Tim Walz rolled out his 2025 biennial budget on Thursday and it includes the first sales tax cut in state history. Walz also is proposing adding sales tax to other previously untaxed services,

Governor Tim Walz and Lieutenant Governor Peggy Flanagan presented their 2025 biennial budget Thursday, calling for a reduction in spending and the first sales tax cut in state history. The budget proposal also calls for closing tax loopholes for services offered by wealth managers and lawyers.