HIBBING — The Coalition of Greater Minnesota Cities presented its 2025 legislative session report in Hibbing on July 9, with a focus on the expected regional impacts from the Legislature’s work.
The lobbyist group cited the impact of a divided government on decision-making processes that would impact Minnesotans.
“The election brought a divided government not seen since 1978,” Bradley Peterson, spokesperson for CGMC, said of the unprecedented session.
The session was exceptional for a number of reasons, including the DFL House boycott that impacted the first three weeks of session. Once the divided house agreed on a power-sharing arrangement with bipartisan co-chairs of committees, equal numbers of Republicans and Democrats on those committees and the appointment of Rep. Lisa Demuth as speaker, the session was able to move forward in a normal fashion, according to CGMC. 
Though the state budget forecast showed a small surplus for the next biennium, the deficit of $6 billion in the following two-year cycle threatens local government aid programs.
Both the governor and the Legislature opted to reduce spending in the current year’s budget to get ahead of the future deficit.
Much of the work this year focused on protecting key programs from cuts while the Legislature focused on passing a bonding bill to address key infrastructure needs across the state, according to the CGMC report.
The Senate Tax Bill, authored by Sen. Ann Rest, proposed spending on new items and cuts to various programs, including a $20 million cut to local government aid.
While lawmakers voted that local government aid funding remain intact for another year, the fiscal strain in future years could potentially impact that in following sessions.
Following the 2024 rejection of the bonding bill, there were multiple calls for a bonding measure to be passed during the 2025 legislative session. The governor introduced his own version of the bill to be discussed.
The bonding bill impacts Public Facilities Authority funds, Business Development Public Infrastructure grants, local infrastructure projects across greater Minnesota, greater Minnesota Child Care Facilities grants, and lead line inventory and replacement funding.
The 2025 bonding bill passed with significant investments on water and transportation infrastructure, funding for BPDI, and policy changes to the PFA program, including increased grant caps and a new program that will fund emerging contaminant projects, CGMC said.
The bonding bill provided $80 million for transportation, including $42 million for the Local Road Improvement Program, $20 million for the Local Bridge Replacement Program, and $5 million for Local Road Wetland Replacement.
 An EMS bill introduced to develop a sustainable program for rural emergency services was approved. The bill, introduced by Sen. Grant Hauschild and Rep. Natalie Zeleznikar, proposed an operating deficit grant program for struggling ambulance services. 
The program will be funded with $16 million from the general grant fund.
Minnesota cities, legislators, housing developers, and advocates agree on one thing: Minnesota needs more housing now, stated the report. The “Yes to Homes” package was rejected for this legislative session. 
“The stage is set for continued confrontation on the issue in 2026,” Peterson said.
At the forefront of conversation was the recent assassinations of Speaker Emerita Melissa Hortman, and her husband, Mark, as well as the attack on Senator John Hoffman and his wife, Yvette. 
The recent tragedy brought to light the potential security measures needed to mitigate the threat of political violence and to prevent it from happening again.