US EditionWalz Unveils 2026 Supplemental Budget Focused on Affordability, Workforce Adapting to AI and Taxing Tech Companies
The budget includes $444 million for Dependent Care Credits, a historic 0.075% sales tax cut, and a social media tax on tech firms with over 100,000 users to fund AI workforce initiatives.
- On Tuesday, Gov. Tim Walz unveiled a supplemental budget at the St. Paul Eastside YMCA, proposing $444 million in child care credits, a social media tax, and recovery support for families affected by immigration enforcement.
- A February forecast showed improved budget outlook, giving lawmakers room for new proposals as Walz and caucus leaders prepare negotiations extending until the Legislature adjourns on May 18.
- The budget allocates $444 million to expand Dependent Care Credits, benefiting an estimated 104,800 families by increasing allowable expenses by $3,000 for one child and $6,000 for two or more under age 5.
- By slowing program growth, the administration projects a $1.8 billion balance for fiscal years 2028-29 while cutting $370 million in spending and reducing the structural deficit by nearly 20%.
- Revenue provisions include a social media tax on platforms with over 100,000 monthly users and a first-ever 0.075% sales tax cut, while a new Governor's Council on the Future AI Economy will guide workforce preparation initiatives.
25 Articles
25 Articles
Walz’s budget proposal calls for studies, councils and blue ribbon commissions
In his final budget proposal as governor, Tim Walz wants the Legislature to expand the state’s child care tax credit and reduce grants used to care for disabled Minnesotans. Walz also wants to “complete a comprehensive study” on how to reform the flawed computer systems that administer social services, and create a council to help businesses and workers adjust to an economy that may soon be ruled by artificial intelligence. These ideas were part…
Minnesota Reformer
Walz proposes tax on social media companies, cuts to human services spending
Gov. Tim Walz spoke about his budget proposals at St. Paul Eastside YMCA on March 17, 2026. (Photo by Michelle Griffith/Minnesota Reformer)Gov. Tim Walz on Tuesday proposed changes to Minnesota’s budget, including taxing the wealthy, reducing spending on disability services and using the money for middle-class affordability measures. Last year, Minnesota lawmakers passed a $66 billion two-year budget that took a step toward resolving a multi-bil…
Star Tribune
Mankato Free PressWalz pitches child care tax credit, new social media tax in his final budget
The changes are meant to lower costs for middle class families, the governor says.
Post Bulletin
Gov. Tim Walz’s supplemental budget features investments in child care, social media tax
ST. PAUL — Gov. Tim Walz released his supplemental budget on Tuesday, March 17, with investments in child care, fraud prevention, housing support and a few new tax changes. A February budget forecast showed an improved budget outlook for the state and more wiggle room for lawmakers and Walz. The state is working with a $3.7 billion surplus for 2026-27, and what once was a $6 billion budget deficit for 2028-29 is now looking to be a $377 million …
New tech tax part of Walz budget plan that includes other tax cuts, recovery assistance
Gov. Tim Walz proposed levying a tax on social media companies to counteract economic disruptions from artificial intelligence. Walz also wants relief payments to those affected by federal immigration actions, as well as more child care refunds and affordable housing.
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