Legislative Update
Dear friends and neighbors,
Week two of the 2026 legislative session is officially behind us—and let me tell you, it came out swinging! Big numbers, big decisions, and big opportunities are already shaping the future of Minnesota.
Want the inside scoop on what happened? Click the photo below to watch last week’s session update and catch up on everything you need to know.
In other news, Friday morning, the February budget forecast landed, and guess what? The numbers don’t lie. They matter because they show what happens when you actually practice fiscal discipline—something House Republicans have been championing year after year while others were busy spending first and asking questions later. Friday’s forecast proves that discipline works—and it gives us a real shot at steering Minnesota back on course.
Let me be crystal clear: Minnesota families deserve better than lawmakers pretending that reckless spending equals “progress.” If we want our state to thrive—not just this year, but five, ten, twenty years down the road—we have to legislate smarter. Fiscal responsibility isn’t optional—it’s non-negotiable. Every bill we pass should either solve a real problem efficiently… or get out of the way!
Now for some good news: we have a real chance to pass a bipartisan tax conformity bill that actually helps working Minnesotans keep more of what they earn. No tax on tips. No tax on overtime. If you’re putting in extra hours or earning those hard-earned gratuities, you should be able to keep that money—plain and simple
And let’s not forget our Main Street heroes—the family-owned shops, small manufacturers, restaurants, and our farmers—the people who keep our communities humming. They don’t need more red tape. They don’t need more taxes. They need room to grow and succeed.
Here’s the part we absolutely cannot ignore: Minnesotans are overtaxed. Again, the forecast shows higher-than-expected tax revenue. The government isn’t hurting for cash—families are. That means tax hikes and new spending proposals? Off the table. Period. Our focus should stay on lowering costs, protecting family budgets, and creating a climate where businesses and workers can actually flourish.
Now, let’s address the elephant in the room: structural imbalance. Translation? We still have a spending problem. Last year’s efforts helped, but the job isn’t finished. Fiscal responsibility may not be glamorous, but it’s absolutely essential if we want long-term stability instead of short-term political wins.
Another big takeaway: fraud prevention. Health and human services costs have already started dropping thanks to basic fraud checks—and that’s minimal effort from the administration. Imagine what could happen if we put a serious anti-fraud plan into motion: real oversight, real accountability, real consequences for fraudsters. Not partisan politics—just common sense.
Here’s a fun twist: many of the fraud prevention ideas now being floated by House Democrats and the Governor? They were first proposed by Republicans. That tells me there’s room for agreement—and I’m ready to work with anyone serious about cleaning this up and protecting taxpayer dollars.
At the end of the day, Friday’s forecast reinforces what I’ve been saying all along: pro-business policies, economic growth, and fiscal responsibility are the real solutions—not bigger government and higher taxes. If Minnesota wants to fully ride the national economic rebound, we need to reverse the harmful policies that are holding us back.
This session gives us a real chance to hit reset: relief for workers, accountability in government, growth for local businesses, and a future where Minnesota thrives without digging itself into deeper debt. I’m ready for the work ahead and committed to policies that make life more affordable, government more responsible, and Minnesota’s future brighter.
As always, thank you for staying engaged. The best conversations happen when you share your thoughts, so keep reaching out—I’m listening!
Until next time,
— Representative Joe McDonald
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