ST. PAUL – The House Environment and Natural Resources Finance and Policy Committee revealed its $2.28 billion omnibus finance bill for the 2026-27 biennium on Thursday, signaling the start of discussions on environmental funding and policies. However, committee co-chairs cautioned that the bill is a “starting point” and emphasized that more work is still to come.
The bill, HF2439, was passed with a “delete-all” amendment, which means it contains no policy provisions at this stage. The legislation does not include any of Governor Tim Walz’s recommended operating adjustments for key environmental agencies, such as the Pollution Control Agency (PCA), the Department of Natural Resources (DNR), and the Board of Water and Soil Resources (BWSR).
Committee co-chairs, Rep. Josh Heintzeman (R-Nisswa) and Rep. Peter Fischer (DFL-Maplewood), described the bill as a “bare bones” proposal. They stressed that it was designed primarily to meet the House deadline for committee approval of finance bills. Both co-chairs promised to continue refining the budget and to incorporate policies from earlier committee discussions into the final bill.
“We will find the common ground that we need to find to get an agreement,” said Heintzeman, the bill’s sponsor.
Financial Adjustments and Cuts
The committee has made some financial decisions regarding the $10 million budget cut it received from House leadership compared to the February base. According to the amended bill and accompanying spreadsheets, the reductions will be allocated as follows:
$5 million from a 2024 appropriation to the DNR for prairie and grassland enhancement, as well as wetland restoration on state-owned wildlife management areas.
$3 million from a 2025 appropriation to the PCA for local government climate resiliency and water infrastructure grants.
$2 million from a 2025 appropriation to BWSR for conservation easements, restoration, and climate-related projects like carbon sequestration.
Public Testimony Highlights Concerns
The committee received input from 17 letters and nearly a dozen in-person testifiers, including the heads of the agencies facing cuts. DNR Commissioner Sarah Strommen, along with PCA Commissioner Katrina Kessler and BWSR Director John Jaschke, voiced concerns about the impact of the proposed reductions.
Strommen warned that without the governor’s proposed $16.9 million operational increase, Minnesotans would see a decline in services, including reduced maintenance of state parks, shorter camping seasons, and fewer customer service hours.
Kessler echoed these concerns, stating that the PCA’s ability to monitor pollution, issue permits, and clean up contamination would be significantly hindered without the recommended $12.16 million increase.
Jaschke highlighted that BWSR’s core functions, including soil and water conservation and wetland policy implementation, would be compromised by the $2 million cut. He also pointed out the absence of the governor’s proposed $463,000 biennial increase for operational needs.
Next Steps
The bill now moves to the House Ways and Means Committee for further review. While this initial proposal does not include any policy changes, lawmakers are expected to continue working on the budget and integrate feedback from stakeholders as they work toward a finalized omnibus finance bill.
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