Gov. Tim Walz is pitching his first budget under the new Trump era as a counterweight to the incoming president’s threats to impose tariffs, which he says will raise costs on everyday Minnesotans. His plan would lower Minnesota’s sales tax rate for the first time in state history by .

House and Senate Republicans balked at Walz’s recommendations and signaled they would resist any new taxes or fees.

Tim Walz on Thursday unveiled his plan for the next two-year budget, proposing to implement the first sales tax rate reduction in Minnesota history and rein in spending on some of the state's fastest-growing programs.

Governor Tim Walz and Lieutenant Governor Peggy Flanagan presented their 2025 biennial budget, which included the first sales tax in the state's history.

The state of Minnesota is spending more money than it’s bringing in, and if current trends continue, the state will spend down the current balance as soon as 2027. DFL Gov. Tim Walz wants to address the issue mostly by slowing state spending on disability services,

He wants to cut the statewide sales tax by 0.075% — which is $0.075 on a $100 purchase — moving it to 8.6% from 8.675%.

Gov. Tim Walz's budget proposal would make changes to sales tax collections and trim state spending in an effort to stave off a steep shortfall in future years.

Minnesota Gov. Tim Walz presented his two-year budget proposal, and in it he proposed a cut to sales tax but also proposed to raise the sales tax on certain services. FOX 9's Corin Hoggard has the latest.