The Minneapolis Intergovernmental Relations Committee received comprehensive updates Tuesday on state and federal legislative actions affecting the city, beginning with acknowledgment of the recent assassination of Speaker Hortman and shooting of the Hoffmans.

Director Topinka reported that the 2025 state legislative session resulted in a $66 billion budget for fiscal years 2026-27, down from $72 billion in the previous biennium. The city avoided cuts to Local Government Aid despite initial discussions of potential reductions, though the local cannabis aid account was repealed, eliminating an estimated $250,000 annually for Minneapolis.

The session produced mixed results for city priorities. Minneapolis secured $1 million for KMOJ's new facility and funding for traffic calming measures that could provide approximately $500,000 annually. However, the $5.7 million Water Yard project funding was not included in the bonding bill, prompting ongoing discussions between city staff and community organizations about next steps.

On the federal level, Senior Government Relations Representative Lauren Olson outlined significant proposed cuts in the federal reconciliation bill and fiscal year 2026 budget. The proposals include a 22% overall cut in discretionary spending, with substantial reductions to HUD programs, Health and Human Services, and other areas that directly impact local communities.

Committee Chair Aurin Chowdhury praised the IGR team's work during what she called an "extremely difficult legislative session," noting their success in preventing Local Government Aid cuts and securing key infrastructure funding despite challenging budget conditions.