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 .

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

The state of Minnesota is spending more money than it’s bringing in, and if current trends continue, the state will spend down the current balance as soon as 2027. DFL Gov. Tim Walz wants to address the issue mostly by slowing state spending on disability services,