Reconciliation

Reconciliation is special procedure that enables Congress to enact legislation on taxes, spending and the debt-limit with only a majority vote in the Senate, bypassing the sixty-vote filibuster. It is often used when one party controls Congress and the Presidency, as it allows the advancement of policy agendas without needing bipartisan support. The reconciliation process has been used to pass major legislation like the 2017 Tax Cuts and Jobs Act, The Affordable Care Act and the American Rescue Plan Act. The purpose of reconciliation is to align current law with the fiscal goals of a new budget resolution, but cannot change social security, Medicare or the budget process itself.

The 2025 budget reconciliation bill, Public Law No: 119-21 (also referred to as "H.R.1"), was passed on July 4th, 2025. You can learn more about reconciliation at the Library of Congress webpage, The Reconciliation Process: Frequently Asked Questions, or in the Federal Funds Information for States article, "Say What? Deciphering Federal Budgetspeak".

Minnesota Programs Impacted by the 2025 Reconciliation Bill (Public Law 119-21)

The information in the chart below includes the provisions of 2025 reconciliation that will impact Minnesota programs, state agencies, primary constituents, and the timeline for enactment. Please note that this chart does not include a complete list of provisions nor the impacts of 2025 reconciliation and is for informational purposes only.

If you require additional accessibility features for the information presented below, please email federal.investments.mmb@state.mn.us with your request.

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This information is sourced from Public Law No: 119-21 and curated in collaboration with Minnesota state agencies. It is for informational use only. Last updated on 9/8/25.

Importance of Federal Funding to Minnesotans

Impacts of 2025 Reconciliation on Medicaid, SNAP, and Clean Energy

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Medicaid in Minnesota

Changes to Medicaid can be found in Sec. 71107-71120 of the reconciliation bill passed on July 4, 2025. https://www.congress.gov/bill/119th-congress/house-bill/1/text.

Learn more about Medicaid in Minnesota

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Supplemental Nutrition Assistance

Program

Changes to the Supplemental Nutrition Assistance Program (SNAP) can be found in Sec. 10101-10107 of the reconciliation bill passed on July 4, 2025. https://www.congress.gov/bill/119th-congress/house-bill/1/text.

Learn more about SNAP in Minnesota

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Clean Energy Initiatives

Changes to clean energy initiatives can be found in multiple sections throughout the reconciliation bill passed on July 4, 2025. https://www.congress.gov/bill/119th-congress/house-bill/1/text.

Learn more about Clean Energy in Minnesota

Federal Taxes: Key Changes and Impacts to State Revenue

Key Changes to Federal Tax Policy

There are no changes to state tax laws as a result of the 2025 reconciliation bill (Public Law 119-21), but the changes to federal taxes enacted by the bill will impact Minnesota taxpayers. This document outlines the largest federal tax provisions that will have implications for both individuals and businesses in Minnesota; they apply to federal taxes administered by IRS. It is for informational use only and is not tax advice.

Federal Tax Impacts on State Revenue

There are no changes to state tax laws resulting from changes to the Internal Revenue Code enacted by the 2025 reconciliation bill (Public Law 119-21). This document contains estimated impacts to Minnesota state revenue if Minnesota chose to adopt certain federal tax changes into state law; it is not a comprehensive list of all federal tax changes and is not tax advice.

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