MINNEAPOLIS — Gov. Tim Walz announced on Friday that Minnesota has been ranked as one of the top states to raise a family. Walz credits this ranking to a study done through WalletHub, which put Minnesota in a second-place.

Gov. Tim Walz is pitching his first budget under the new Trump era as a counterweight to the incoming president’s threats to impose tariffs, which he says will raise costs on everyday Minnesotans. His plan would lower Minnesota’s sales tax rate for the first time in state history by .

Gov. Tim Walz on Thursday pitched a tighter two-year budget, complete with spending pullbacks and other measures to keep a potential deficit at bay. He also proposed a lower state sales tax rate but called for extending the tax’s reach to financial services.

Minnesota Gov. Tim Walz presented his two-year budget proposal on Thursday amid an ongoing power struggle at the Capitol.

Minnesota Gov. Tim Walz called for spending cuts Thursday in a $65.9 billion two-year budget proposal that includes a modest reduction in the overall state sales tax but new taxes on services like legal and financial advice.

In regards to the statewide sales tax, Walz is proposing a .075% reduction to the tax rate alongside provisions to expand the sales tax base to close so-called "loopholes" for service providers, such as bankers and attorneys.

Governor Walz’s party has lost control of the Minnesota Legislature and faces mounting criticism as a budget deficit looms.

Walz focused on tackling fraud, cutting state spending and long-term fiscal stability in Minnesota’s 2026-27 budget.

Gov. Tim Walz pitched the first sales tax cut in Minnesota history and curbs to state spending on Thursday as he rolled out his latest budget proposal. Why it matters: It's the DFL governor's opening salvo to a deeply divided Legislature,