Federal Budget Information
Federal Shutdown
The federal government shutdown began on October 1, 2025 at the start of federal fiscal year 2026. Shutdowns occur when there is a lapse in spending authorization because Congress does not pass appropriations bills or continuing resolutions (CRs) before the start of a new fiscal year. Passing appropriations or CRs is what ends a shutdown and authorizes the federal government to resume spending; appropriations bills and continuing resolutions require 60 Senate votes to pass.
The state of Minnesota relies on federal programs to help support many of our own services and programs and we are monitoring the impacts of the shutdown closely. The longer a federal shutdown lasts, the greater the impact on federal agencies and entities that rely on federal programs, like the state of Minnesota. Federal agencies may have to furlough employees and halt disbursement as authorized funds run out, which blocks entities that have federal awards from accessing their funding. The document below contains information on current fiscal and service impacts of the federal shutdown on Minnesota programs; it does not reflect anticipated future impacts of the federal shutdown.
For additional information about current impacts of the federal shutdown on state programs, please see the websites below:
Department of Children, Youth & Families
This webpage is maintained by the Minnesota Department of Children, Youth & Families (DCYF) and contains additional information about the impacts of the federal shutdown on the Supplemental Nutrition Assistance Program (SNAP), Minnesota Family Investment Program (MFIP) and Head Start.
Department of Commerce - Energy Assistance Program
This webpage is maintained by the Minnesota Department of Commerce and contains additional information about the impacts of the federal shutdown on the Energy Assistance Program (EAP) that provides benefits to help eligible Minnesotans pay their energy bills.
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 State Agency Assessment of Initial Impacts
This video is a recording of Minnesota state agency leaders presenting an assessment of initial impacts of the 2025 reconciliation bill (Public Law 119-21) on Minnesota programs. This video was recorded in August 2025.
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.
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 10/28/25.
Importance of Federal Funding to Minnesotans
Impacts of 2025 Reconciliation on Medicaid, SNAP, and Clean Energy
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.
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.
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.
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.
Contact Us: federal.investments.mmb@state.mn.us
