AGP Executive Report

Immigration Funding Fight: Sen. Tina Smith used the Senate floor to oppose a nearly $70B Homeland Security package that would keep ICE and Border Patrol funded through 2029, arguing Minnesota “won the battle” of Operation Metro Surge but the “secret police” damage still lingers. Higher Ed Costs: Wisconsin’s UW regents approved a fourth tuition increase in four years, with a 2% in-state undergraduate tuition hike and higher fees, citing rising costs after a long tuition freeze. Cannabis Market Watch: Minnesota’s Office of Cannabis Management held a listening tour, saying monthly legal sales jumped from under $5M in the first month to about $16M less than a year later. Energy Bills: A new national analysis shows residential electricity prices rising fast in many states, driven by grid investment and demand. Public Finance Oversight: Minnesota State Auditor Julie Blaha released a 2023 report showing special districts’ revenues rose 7% and expenditures 3% as they deliver services statewide. Local Business & Infrastructure: Marshall’s downtown Highway 19 intersection work is progressing, but reopening is still weeks away, with rain slowing concrete and sewer/storm work.

Immigration Funding: The U.S. Senate has cleared a nearly $70B package for the Department of Homeland Security, setting up more money for President Trump’s mass deportation push as the bill heads to the House. Minnesota Medicaid Fallout: Minnesota DHS completed a federal revalidation review of 5,583 high-risk Medicaid providers; 3,411 were slated for unenrollment, meaning more than 60% of high-risk providers failed the standards and thousands of families could be left scrambling. Local Government Finance: State Auditor Julie Blaha released the 2023 Minnesota Special Districts Finances Report, showing governmental fund revenues up 7% and expenditures up 3% across more than 600 special districts. Retail/Convenience Expansion: Bosselman Pump & Pantry plans to buy 21 Hy-Vee Fast & Fresh standalone stores, including one in Lakeville, Minnesota, with rebranding targeted for mid-July. Agriculture Business: CHS will close three southeast Minnesota grain elevators (Kasson, Ostrander, Wykoff) as margins tighten and the region shifts toward processing markets. Higher Ed Budget: The University of Minnesota proposed a fiscal 2027 operating budget focused on student affordability, workforce investment, and mission-driven growth.

Rare Earths & Federal Funding: Phoenix Tailings won a $66 million U.S. Department of Energy grant to scale rare-earth separation, partnering with MIT and the University of Minnesota to build a more integrated domestic refining pipeline. Election Tech Rules: Minnesota’s AI deepfake ban is back in the spotlight as Peggy Flanagan’s campaign accuses a super PAC ad of using an AI-altered image, teeing up another court fight over what’s allowed in election season. Ukraine Aid Vote: The U.S. House passed a bipartisan Ukraine package with new Russia sanctions, but the Senate faces a steep path to reach the 60-vote threshold. Public Safety Contract Debate: Minneapolis is weighing whether to extend and expand ShotSpotter gunfire-detection sensors, with supporters citing faster response and critics questioning whether it improves outcomes. Medicaid Pressure on Providers: Minnesota is dealing with major Medicaid revalidation fallout, with thousands of “high-risk” providers cut off from funding after state reviews. Small Business Spotlight: Granite Falls’ Korthuis Jewelry received an SBA family-owned small business award, highlighting how federal support and local advising help succession and growth.

Medicaid Shake-Up: Minnesota DHS says more than 3,400 “high-risk” Medicaid providers will be disenrolled after a review, with thousands cut off due to incomplete or inaccurate data, failed site visits, or background-check issues—raising fears of service disruptions for vulnerable Minnesotans. Work Requirements: New federal Medicaid work rules are set to tighten starting Jan. 1, requiring many recipients to complete 80 hours a month of work, education, or community service, with advocates warning coverage losses could worsen. Fraud Crackdown: The FBI launched a new “Most Wanted Fraudsters” list, while federal prosecutors announced major fraud charges tied to Medicaid and other schemes, underscoring the enforcement push. Consumer Pressure: A Fed Beige Book update says middle-class Americans are stretching budgets as credit card use rises and inflation pressures persist, with energy costs linked to the Iran war cited as a driver. Local Business/Tech: Google and Intersect began building a 1+ GW co-located data center and generation complex in Texas, a reminder of how power demand is reshaping data-center investment. Sports Business: MLB trade talk is heating up as teams weigh contention and labor uncertainty, with Tarik Skubal emerging as a likely centerpiece.

Medicaid Crackdown in Minnesota: Minnesota DHS revalidation is triggering terminations and “limbo” for more than 1,000 Medicaid providers, with disability groups calling the process rushed and destabilizing for people who rely on services. Social Security Funding Warning: A new analysis says Social Security’s trust fund could be exhausted by 2032, forcing an immediate 24% benefit cut—averaging more than $500 per month in 29 states, including Minnesota. Local Health Care Disruption: A Rochester physical therapy clinic says a state license termination could disrupt disability services for 120+ people, as DHS ramps up revalidation of high-risk Medicaid providers. Agriculture Watch: The U.S. detected the New World screwworm fly in Texas for the first time in decades, prompting a quarantine and raising stakes for cattle producers. Business & Capital Markets: 3D Systems priced a $50M upsized public offering; Celcuity priced an upsized $500M convertible notes deal. Sports Business: The Twins traded pitcher Simeon Woods Richardson to Toronto for cash, while the NBA Finals opened with a court-landing fan incident during Knicks’ Game 1 win.

Fed & Inflation Watch: The latest Fed Beige Book says the U.S. economy is still growing but more unevenly, with higher-income households holding up while middle- and low-income consumers feel affordability pressure—showing up in weaker retail demand, more credit card use, and shifts toward used and hybrid cars. Big Policy Impact (Minnesota): A new analysis warns Social Security could face an automatic 24% benefit cut in 2032, with Minnesota retirees among those hit hardest—about a $530 average monthly reduction. Major Minnesota Infrastructure: Gov. Walz announced Minnesota secured more than $1 billion in federal funding for the Blatnik Bridge replacement, clearing the way for the largest public works project in state history. Food Prices & Competition: An antitrust settlement bars Agri Stats from sharing sensitive data among meat processors, spotlighting how consolidation may be tied to higher grocery costs. Local Business & Growth: Skyline Windows named Doug Zacharias chief commercial officer, signaling continued expansion in building products and façade systems. Community & Nonprofits: West Central Initiative awarded $600,000 in grants to 72 organizations, including CornerStone and FCDC in Frazee.

Medicaid Fallout: A FOX 9 investigation says Minnesota Medicaid fraudsters owe millions but some are being discharged from probation after making only minimal payments, raising questions about how the state handles restitution and provider accountability. Health Care Access: Separate reporting highlights that thousands of Medicaid service providers are stuck in limbo after Minnesota’s fraud crackdown and revalidation deadline, putting medical services at risk. Retirement Investing Rules: Michigan AG Dana Nessel joined a 24-state coalition opposing a Trump administration proposal that would steer retirement savings toward riskier alternative assets, arguing it could expose millions to losses. Local Housing Finance: In Marshall, a developer scaled back an affordable housing plan from 60 to 42 units, citing higher construction costs and the need to close financing gaps. Business & Media: Minneapolis ad-tech firm Marketing Architects expanded its Nielsen partnership to use national TV measurement for forecasting and pricing. Community Calendar: Rochester’s free “Thursdays Downtown” returns weekly June 11–Aug. 13, adding youth vendor booths. Sports Business: The Twins beat the White Sox 6-4 at Target Field, setting up Wednesday’s series finale.

Hospitality impact from immigration crackdown: A new North Star Policy Action analysis says Minnesota’s “Operation Metro Surge” drained about $71 million in wages from the leisure and hospitality sector, cutting jobs and hours after federal agents flooded the Twin Cities. Local housing and public finance: Heritage Park in Minneapolis is in court receivership, with MPHA studying whether to sell or redevelop remaining parcels—raising questions about how public institutions shape long-term housing outcomes. Border leadership shakeup: U.S. Customs and Border Protection named Rosario “Pete” Vasquez as Border Patrol chief after DHS leadership changes, including fallout from the Minneapolis crackdown. Banking payments for small business: Rebolt launched a bank-owned payment utility aimed at putting instant payments inside community banks’ existing online platforms. Manufacturing expansion: SunOpta is investing more than $25 million to expand fruit snack production at its Omak, Wash., plant, boosting capacity by 25% as demand rises. Minnesota business leadership: Winona State appointed Ted Butler as vice president for finance and administration/CFO effective July 6. Regulation and labor costs: A new overview shows more than 20 states raised minimum wages in 2026, including Minnesota, while the federal floor remains unchanged.

Fed independence: Former Fed chair Jerome Powell used the JFK Profile in Courage Award to warn that politicizing the central bank would erode public trust and credibility. Minnesota health care finance: A rushed Medicaid revalidation left thousands of Minnesota care providers suddenly cut off from funding, threatening services and jobs. Local transportation & small business: The Lyndale Avenue South redesign debate in Minneapolis is pitting business owners worried about parking against bicyclists pushing for safer bike lanes. Food safety: The Minnesota Department of Agriculture issued a consumer advisory for certain Milkjam Creamery ice cream and non-dairy frozen desserts due to possible metal fragments. Mining & capital markets: Mesabi Metallics agreed to sell half its royalty interest for $265 million, backing its Minnesota iron ore production ramp-up. Disaster lending: SBA reminded eligible Minnesota businesses and private nonprofits to apply by June 30 for low-interest disaster loans tied to 2025 storms and flooding. Community commerce: New Ulm’s 2026 farmers market and car & bike “Roll-In” series return this summer, with vendor and event details.

Federal Funding Cuts: The Trump administration’s budget office says it’s canceling $1.5B in blue-state grants, including Minnesota, citing “waste and mismanagement,” with targets including DOT and CDC projects. Local Business Pressure: Downtown Rochester’s Mezza9 Cafe announced it will close June 30, blaming rising costs, high rent, and weak foot traffic. Public Safety & Infrastructure: The U.S. Army Corps of Engineers awarded a $290,000 contract to repair erosion damage to the Redwood River levee near Marshall, with work expected to wrap up by late 2026. Banking & Housing Finance: Viking Bank added Nancy Rice as a mortgage loan officer, expanding local lending support for purchases, refinances and construction loans. Legal Reform Spotlight: A sister of an exonerated Minnesota man is pushing lawmakers to pass the “Marvina Haynes Act,” aimed at providing support for families affected by wrongful convictions. Media Industry: TEGNA stations including KARE in Minneapolis won 50 Regional Edward R. Murrow Awards, highlighting local journalism performance. Sports Business Angle: SunOpta (Eden Prairie HQ) opened an expanded fruit-snack production line in Omak, Wash., investing $25M to boost capacity by 25%.

Minnesota biotech: University of Minnesota investigator Dr. Supriya Gupta presented new Phase 1b data for Imugene’s off-the-shelf CAR-T therapy azer-cel at ASCO in Chicago, reporting responses across six blood-cancer subtypes in CAR-T-naïve patients, including DLBCL (67%), MZL (83%), CLL (100%), PCNSL (50%), FL (100%) and Waldenström macroglobulinaemia (results continued in the report). Fed independence: Outgoing Fed Chair Jerome Powell used the JFK Profile in Courage Award to warn that letting a president remove Fed officials over policy differences would destroy the central bank’s credibility and public trust. Local governance & public safety: Minneapolis residents reacted to the resignation of embattled Police Chief Brian O’Hara amid findings tied to concealment of evidence, with some residents citing improved crime outcomes while others demanded stronger protection during federal raids. Global business: Minneapolis-based Castlelake confirmed it’s in early stages of considering a possible offer for easyJet, while easyJet criticized the “opportunistic timing” of takeover chatter amid Middle East-driven fuel and demand pressures. Trade/markets: AP reports oil and Asian stocks hit fresh highs as investors weigh AI optimism and expectations around Iran ceasefire talks.

Minnesota Politics & Economy: The GOP governor endorsement fight is still roiling after Kendall Qualls’ upset win over expected favorite Lisa Demuth—an outcome that could reshape the August primary and the money race. Sports Front Office: The Vikings have hired Seahawks assistant GM Nolan Teasley as general manager, ending a search that left the franchise scrambling after Kwesi Adofo-Mensah’s firing. Immigration Enforcement & Accountability: A Minnesota-linked ICE agent accused of assault and a false police report has been detained in Texas pending extradition, keeping pressure on how federal enforcement is carried out locally. Business & Consumer Finance: A Rochester man is charged after allegedly using a counterfeit U.S. savings bond to open accounts and withdraw cash, a reminder that fraud keeps finding new angles. Policy Watch: States are pushing back on Medicaid work requirements as budget crunches force cuts elsewhere, raising the stakes for health coverage and state finances. Local Culture & Community: A Shakopee prison is hosting a national-style book award voted on by incarcerated readers, with plans to expand prison libraries.

Minnesota Politics: Sen. Amy Klobuchar won the DFL endorsement for governor and named former Fergus Falls Mayor Ben Schierer as her running mate, setting up a jobs-and-affordability ticket for the 2026 campaign. Public Safety & Immigration: The DOJ reportedly subpoenaed Reddit and X for user names, addresses, and banking details tied to criticism of deportation efforts, while New Jersey defended a crackdown on anti-ICE protests outside the Delaney Hall detention center. Local Business & Community: North Mankato launched CityArt in the Alley to keep public art and business foot traffic going during Belgrade Avenue construction. Health & Finance: Willmar CPA Sara DeRoo was recognized again as a Forbes Best-In-State Top CPA, highlighting workforce development in accounting. Sports Front Office: The Vikings are reportedly hiring Seahawks GM Nolan Teasley, a major shake-up for Minnesota’s football operations. Crime: Red Wing police and federal agents arrested a business owner in a drug bust that seized about 5 pounds of suspected meth and cash.

Economic Development (Iron Range): The Iron Range Resources and Rehabilitation Board approved $500,000 in mining-tax funds for a new Border Lakes Brewing depot brewery and tap room in Ely, alongside other local grants and loans. Rural Schools Funding: Ely schools will receive $92,679 from the Taconite Economic Development Fund after Iron Range legislators approved a one-time allocation. Community Health & Infrastructure: Marshall crews are advancing water and sewer line work after major intersection closures, underscoring ongoing local infrastructure costs. Public Safety: Red Wing police and federal partners seized nearly five pounds of suspected meth and cash during warrants tied to a local business. Energy & Land Use: Pulsar Helium bought about 1,360 acres of surface land near its Topaz project, aiming to strengthen control as it moves toward production readiness. Local Business Climate: Rochester’s Frahm’s Service Center announced it’s closing, adding to Southeast Minnesota’s string of restaurant and shop shutdowns. Politics & Labor: DFL delegates endorsed Attorney General Keith Ellison for reelection by acclamation. Sports & Local Economy: Twin Cities Irish Fest launched an emergency fundraising push after a $185,000 deficit tied to rising vendor costs and deposits.

Minnesota Politics: Sen. Amy Klobuchar named former Fergus Falls Mayor Ben Schierer as her lieutenant governor running mate, banking on his rural economic development record and small-business background to strengthen support across greater Minnesota. Workforce & Education: Workforce Pell is moving from policy to practice as colleges prepare to apply for eligibility under the new federal rules, with guidance emphasizing that success won’t be owned by financial aid offices alone. Housing & Local Development: Mankato planning commissioners advanced a plan to convert a Motel 6 into 63 units of affordable housing for elderly and disabled residents, with city council review next. Business & Markets: Proxy fight at Medallion Financial heats up as ISS and Glass Lewis back BIMIZCI’s nominees and recommend withholding from key incumbents. Tech & Regulation: Kalshi sued Minnesota to block the state’s prediction market ban, arguing it conflicts with federal CFTC authority and First Amendment protections. Public Safety & Immigration: An ICE agent charged in a Minneapolis shooting during the Trump-era immigration crackdown was arrested in Texas, as Minnesota prosecutors press forward. Corporate Finance: Donaldson raised its quarterly cash dividend 6.7%, payable June 30.

Affordability Watch: A new national report finds 45.5% of U.S. households in 2024 couldn’t “make ends meet,” with the share falling after COVID but still stuck above 40% for years—raising pressure on food, health care, and debt. Fraud Crackdown: VP JD Vance’s task force says taxpayers were defrauded of billions, with billions recovered from small-business loans and Medicaid, as investigators push for more. Macro Signals: Moody’s Mark Zandi warns the U.S. economy is “struggling,” pointing to weaker growth, housing, and capital spending, while the Fed’s inflation gauge hits a three-year high. Minnesota Business & Tech: Mediacom launched a 5-Gig broadband tier across hundreds of thousands of Minnesota homes, aiming to expand to more than a million. Local Economy & Community: Minnesota lawmakers approved $4 million in bonding for New Ulm to replace its last lift station with a gravity sewer system. Legal/Policy: Kalshi sued Minnesota over the state’s prediction market ban, escalating a broader fight over regulation. Public Safety & Health: Southwest Minnesota EMS rolled out ambulance telemedicine with $9.9 million in federal funding.