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
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 9/8/25.
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.
Key Changes to Federal Tax Policy
There are no changes to state tax laws as a result of the 2025 reconciliation bill, 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.
Rural Health Transformation Program: Public Comments
The State of Minnesota is seeking input to assist with the development of the Rural Health Transformation Program application. Please provide input to the Rural Health Transformation Plan by September 26, 2025 by completing this survey: Rural Health Transformation Plan: Public Comments
For questions, or to request an alternative form to submit your responses, please contact: rural.transformation.mdh@state.mn.us
Contact Us: federal.investments.mmb@state.mn.us
