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State and local government financing and operations bill passes and heads to governor

By Alex Smith

Minnesota's HF 2438, a taxation bill covering the financing and operation of state and local government, has now passed both chambers and was presented to the governor on May 20, 2026. The bill addresses how the state and local governments are funded and operated under Minnesota tax law.

The bill was sponsored by Davids along with four co-sponsors. The House passed the conference committee report on May 17, 2026, by a vote of 126 to 8. The conference committee had adopted a delete-everything amendment before the House took up the final version. The bill was then presented to the governor three days later on May 20, 2026 (source: https://openstates.org/mn/bills/2025-2026/HF2438/).

The bill now awaits action by the governor, who may sign it into law, allow it to become law without a signature, or veto it.