On Wednesday, Minnesota Department of Commerce Announced Coming Impact of Trump Budget Passed in July
St. Paul, Minn. – Senate Majority Erin Murphy (DFL-St. Paul) said today that the coming increases in health care costs for tens of thousands of Minnesotans are a direct result of the budget enacted by President Trump and the Republican Congress this summer.
“The Trump budget, recently enacted by a Republican U.S. Congress, has put the health care of 90,000 Minnesotans in jeopardy by eliminating the tax credits they need to afford coverage next year. This was done in Washington, D.C. to help pay for trillions of dollars in tax cuts skewed to benefit wealthy millionaires and billionaires. With complete control of the White House and Congress, Republicans preferred to shut down the federal government today rather than restore the tax credits. Without the help provided by the tax credits, Minnesota’s working families, farmers and self-employed business owners will see significant insurance premium increases. The Senate select committee on federal impacts will probe this issue specifically as one more example of the chaos coming out Washington that’s hurting our family budgets.”
Today the Minnesota Department of Commerce released new insurance rates for premiums on the individual market, including the MNsure marketplace, that will take effect for Minnesotans on January 1, 2026. Provisions in the federal budget passed by Republicans in Congress and their failure to extend enhanced premium tax credits drove these rate hikes. These federal changes will force Minnesotans to pay more for less coverage.
187,000 Minnesotans are covered on the individual market, and nearly 90,000 receive enhanced premium tax credits to make coverage more affordable. The expiration of the enhanced premium tax credits will lead to an average monthly increase of $177. These cost increases, and other federal changes like ending automatic renewals, are expected to cause over 62,000 Minnesotans to drop private coverage, on top of 140,000 losing coverage because of Medicaid cuts.
MN Senate Select Committee on Impact Federal Budget Discusses How Food Assistance Cuts Impact Minnesotans
Also on Wednesday, the Senate Select Subcommittee on Federal Impacts on Minnesotans and Economic Stability held its first hearing on the impact of the Trump budget. The committee, formed to navigate the Legislature’s effort to react to changes made by Congress and the Trump administration, heard from counties, experts and recipients of SNAP benefits on how changes to that program will affect Minnesotans.
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