Federal policies impact Minnesota’s progress
Federal policy decisions in areas from health care to nutrition to the environment have a real impact on Minnesotans’ daily lives. The federal government is also an important source of funding for public services provided at the state and local levels, and federal tax decisions influence our state tax system as well. Our federal work focuses on whether federal policies support or hinder Minnesota’s progress toward building a broader prosperity for all.
Resources on federal actions impacting Minnesota
The federal reconciliation bill (H.R. 1), signed into law on July 4, 2025, did a number of things that make meeting the needs of everyday people more difficult in Minnesota and states across the country. H.R. 1:
- Made unprecedented funding cuts to health care, food support, and other services Minnesotans count on to be healthy and get by;
- Shifted substantial responsibility for funding and delivering basic needs services to the states and counties;
- Enacted expensive tax cuts that gave the biggest benefits to high-income people; and
- Funded a massive expansion of the existing deportation and detention regime.
These federal budget decisions are flowing down to state, local and tribal governments, affecting families and communities across the country. In Minnesota, for example, the federal policy changes will eventually cost almost $2 billion in funding cuts to the state budget over the course of four years.
The first of many federal policy changes took effect in the fall of 2025, and policymakers, nonprofit and community organizations, and advocates have been preparing for how these funding cuts and policy changes are and will affect Minnesotans. We are compiling federal and state resources to stay informed and understand who will be impacted.
Publications
Post
ICE spike means 32,000 fewer jobs in Minnesota
October 8, 2026 • Carly Eckstrom
Federal Issues, Immigration, Income and Inclusive Economy, Income and Work
It is increasingly clear that the program of mass deportation being carried out by the current administration is hurting American… Continue reading ICE spike means 32,000 fewer jobs in Minnesota
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Minnesota Budget Project raises concerns over a proposed federal rule that could make funding essential health care services more difficult
October 8, 2026 • Jessie Luévano
Federal Issues, Health Care
The federal government recently proposed new restrictions that that will make financing affordable health care more difficult for states. We… Continue reading Minnesota Budget Project raises concerns over a proposed federal rule that could make funding essential health care services more difficult
Brief
H.R. 1 Report: How Minnesota responds to federal harms to Medicaid and where we should go from here
September 8, 2026 • Jessie Luévano
Federal Issues, Health Care
Medicaid is vital for Minnesotans’ health and well-being Federal actions since July 2025 have made sweeping changes that harm Medicaid… Continue reading H.R. 1 Report: How Minnesota responds to federal harms to Medicaid and where we should go from here
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Minnesota Budget Project weighs in on proposed federal Medicaid restrictions
August 14, 2026 • Jessie Luévano
Federal Issues, Health Care
The federal government recently proposed new restrictions that could cause health coverage loss for more Minnesotans under Medicaid work reporting requirements. During the public comment period where organizations and individuals could weigh in, the Minnesota Budget Project submitted the following letter.
Brief
Health coverage at risk for 128,000 Minnesotans subject to new Medicaid work reporting requirements
May 14, 2026 • Jessie Luévano
Federal Issues, Health Care
In Minnesota, roughly 1 million people have health care coverage through Medicaid, also known as Medical Assistance (MA).[1] Nationally, about… Continue reading Health coverage at risk for 128,000 Minnesotans subject to new Medicaid work reporting requirements