In January 2023, Minnesota Governor Tim Walz pledged to transform Minnesota into the best state in the nation for children to grow up in. True to his word, less than five months later, Governor Walz signed a budget and additional legislation that align with his vision for the state.
Key Provisions of the New Laws:
Child Tax Credit:
One of the significant changes is the introduction of a state child tax credit aimed at supporting lower-income families in Minnesota. This credit, which can provide up to $1,750 per child with no limit on the number of children claimed, is considered the most generous in the United States. It is estimated that this credit will reduce child poverty by a third. Single parents earning $29,500 and couples earning $35,000 can claim the full credit, which gradually phases out based on income, filing status, and the number of children.
Over 215,000 families, encompassing more than 437,000 children, have already taken advantage of this credit in 2023. The average credit per child is $1,244, totaling $545 million in benefits.
Universal School Meals:
Another significant change is the implementation of universal school meals in participating schools across Minnesota. This initiative makes Minnesota the fourth state to offer free breakfast and lunch to students. The program has already resulted in a substantial increase in the number of meals served, with nearly 4.3 million additional breakfasts and 4.5 million more lunches provided to students compared to the previous year.
The state is expected to invest approximately $400 million over two years to support this program.
Paid Family and Medical Leave:
Starting in 2026, Minnesota will introduce a paid family and medical leave program that allows individuals to take up to 12 weeks for each period of leave, with a combined maximum of 20 weeks in a 12-month period. The amount workers receive during their leave will be based on their pay. This program will be the 13th of its kind in the United States, with benefits funded through payroll deductions on wages.
These progressive policies reflect Governor Walz's commitment to improving child well-being and supporting families across Minnesota.
