FILE - Minnesota State Capitol

The Minnesota State Capitol in Saint Paul, Minnesota.

(The Center Square) – About $1.4 billion federal stimulus money landed in Minnesota's account on Tuesday, state budget officials said.

That's 2021's share. Another $1.4 billion will arrive next year.

The money is key to Minnesota's unfinished legislative budget. Although the GOP and Democrats have partial agreements, billions of dollars of spending aren’t yet decided.

A deal reached last week seeks a $52 billion budget to use the COVID-19 flexible fund for:

  • $75 million for summer learning
  • $7 million for state government and operating deficiency and remote work
  • $12 million for continued operations of the Minnesota Zoo

Legislative leaders agreed to increase the budget reserve level from $1.59 billion to $2.37 billion.

  • Any policy and finance provisions included in a final omnibus bill must be agreed to by legislative leaders.
  • All three leaders agree the “appropriate” commissioners and committee chairs shall work cooperatively together to reach an agreement within the target provided.

The deal includes $440 million in state tax breaks for businesses that received federal Paycheck Protection Program loans and exemption of taxes for the first $10,200 of 2020 unemployment insurance.

The Legislature must hammer out disagreements, including Gov. Tim Walz’s emergency powers, California car regulations, police reform, eviction moratorium, price gouging rules, and more.

Separately, Walz's administration told legislative leaders Tuesday it plans to route $70 million in federal money via child care assistance grants, foster care, and nutrition programs.

The Legislature must meet a Friday deadline of 5 p.m. to complete finance spreadsheets to prepare for a June special session in which sides will battle for a two-year budget negotiation.

If they don’t pass a budget by June 30, the government shuts down.

Staff Reporter

Scott McClallen is a staff writer covering Michigan and Minnesota for The Center Square. A graduate of Hillsdale College, his work has appeared on Forbes.com and FEE.org. Previously, he worked as a financial analyst at Pepsi.