Minnesota officials, agencies brace for impacts of federal government shutdown
Gloomy skies above the Minnesota Capitol on April 16, 2024, as showers and storms approach the Twin Cities from the southwest
Andrew Krueger | MPR News File
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[MUSIC PLAYING] NINA MOINI: It's our top story today. State leaders outlined some of the potential impacts of the federal budget shutdown today, including thousands of federal employees at risk of being furloughed, and funding for nutrition programs in clean energy projects in limbo. Dana Ferguson joins me now from the Capitol to discuss. Thanks for taking the time, Dana.
DANA FERGUSON: Yeah, you're welcome, Nina.
NINA MOINI: So here we are in day two of this federal government shutdown. What did Governor Tim Walz and some of the people working on the budget have to say about how this is playing out here in Minnesota?
DANA FERGUSON: Yeah, they said the state had been doing some preparation over the last few weeks, sort of expecting that this might be the outcome. They anticipated that Congress might not be able to agree on a resolution that could keep the federal government open. And they said the initial impacts aren't that significant for programs run by the state. Many had enough funding to keep them going. But as the shutdown draws out, it could impact programs that thousands of Minnesotans rely on. Here's Budget Director Anna Minge.
AHNA MINGE: We know that the longer a shutdown lasts, the more likely that critical services, such as Head Start or veterans' benefits, will be impacted over time.
DANA FERGUSON: She said SNAP and WIC benefits could run out by November. State lawmakers heard from folks who administer SNAP, the program that some as food stamps, and they said they already had concerns. They're facing new federal regulations, and more people are looking to food shelves and other programs to get the food that they need.
NINA MOINI: And the shutdown could impact federal workers, as well, here in the state. Do we know how many there are or how many could be furloughed at this point?
DANA FERGUSON: Yeah. Not including US Postal Service workers, Nina, there are about 18,000 federal employees in Minnesota. Minge said it's not clear, based on federal guidance so far that has just started coming out, how many would be temporarily out of work.
AHNA MINGE: We don't know at this time exactly how many of those employees will be furloughed. But we know that each department is impacted in different ways. For example, for example, the Department of Veterans Affairs published contingency plans, suggest that they will furlough very few workers, while the Department of Agriculture looks like they will furlough about half or discontinue about half of their FTEs.
DANA FERGUSON: And the Trump administration has also threatened to lay off federal employees furloughed during the shutdown. So the pressure is on.
NINA MOINI: Yeah. And Minnesota could also stand to see, like we mentioned at the top, some of this funding around clean energy efforts pulled by the White House. What do you about that so far, Dana?
DANA FERGUSON: Well, Politico reported yesterday that the White House budget director wants to pull project funding for 16 states that didn't support President Donald Trump's election bid last year. And Minnesota is on that list. Minge says much of the funding in question is going to private entities in the state. But it could also hit some grant money that goes to the Minnesota Department of Commerce right now.
NINA MOINI: And more attention for Minnesota, the governor ran on the ticket last fall against the president as a VP candidate. What did he have to say?
DANA FERGUSON: Yeah, Walz was pretty direct in calling out the funding cut as political. And he said, that's just not acceptable.
TIM WALZ: If we need to challenge in court, we'll challenge in court. But this idea that you've got to go and kiss the ring, or you've got to go and give some type of award to get basic services that he swore an oath to defend, that is outrageous. So no, I will not change how we approach that.
DANA FERGUSON: He is fresh off of a trip to Ireland, where he met with dignitaries and business leaders. And Walz said folks in other countries are just perplexed by the current moment in our country.
NINA MOINI: Dana, I know you and our colleagues in the newsroom outlined some of the other impacts Minnesota is seeing due to the shutdown here on day two. Can you talk about where those are at this point?
DANA FERGUSON: Yeah, you bet. Dan Crocker, based in Duluth, reports that Voyageurs National Park is still open, but staffing and some services are limited there. And some high-profile lawsuits filed here are on hold while resources at the US Department of Justice are diverted away from civil cases.
NINA MOINI: Dana, thanks for bringing us the latest. Appreciate it.
DANA FERGUSON: You're welcome. Thanks, Nina.
NINA MOINI: That's Dana Ferguson, a political correspondent for MPR News.
DANA FERGUSON: Yeah, you're welcome, Nina.
NINA MOINI: So here we are in day two of this federal government shutdown. What did Governor Tim Walz and some of the people working on the budget have to say about how this is playing out here in Minnesota?
DANA FERGUSON: Yeah, they said the state had been doing some preparation over the last few weeks, sort of expecting that this might be the outcome. They anticipated that Congress might not be able to agree on a resolution that could keep the federal government open. And they said the initial impacts aren't that significant for programs run by the state. Many had enough funding to keep them going. But as the shutdown draws out, it could impact programs that thousands of Minnesotans rely on. Here's Budget Director Anna Minge.
AHNA MINGE: We know that the longer a shutdown lasts, the more likely that critical services, such as Head Start or veterans' benefits, will be impacted over time.
DANA FERGUSON: She said SNAP and WIC benefits could run out by November. State lawmakers heard from folks who administer SNAP, the program that some as food stamps, and they said they already had concerns. They're facing new federal regulations, and more people are looking to food shelves and other programs to get the food that they need.
NINA MOINI: And the shutdown could impact federal workers, as well, here in the state. Do we know how many there are or how many could be furloughed at this point?
DANA FERGUSON: Yeah. Not including US Postal Service workers, Nina, there are about 18,000 federal employees in Minnesota. Minge said it's not clear, based on federal guidance so far that has just started coming out, how many would be temporarily out of work.
AHNA MINGE: We don't know at this time exactly how many of those employees will be furloughed. But we know that each department is impacted in different ways. For example, for example, the Department of Veterans Affairs published contingency plans, suggest that they will furlough very few workers, while the Department of Agriculture looks like they will furlough about half or discontinue about half of their FTEs.
DANA FERGUSON: And the Trump administration has also threatened to lay off federal employees furloughed during the shutdown. So the pressure is on.
NINA MOINI: Yeah. And Minnesota could also stand to see, like we mentioned at the top, some of this funding around clean energy efforts pulled by the White House. What do you about that so far, Dana?
DANA FERGUSON: Well, Politico reported yesterday that the White House budget director wants to pull project funding for 16 states that didn't support President Donald Trump's election bid last year. And Minnesota is on that list. Minge says much of the funding in question is going to private entities in the state. But it could also hit some grant money that goes to the Minnesota Department of Commerce right now.
NINA MOINI: And more attention for Minnesota, the governor ran on the ticket last fall against the president as a VP candidate. What did he have to say?
DANA FERGUSON: Yeah, Walz was pretty direct in calling out the funding cut as political. And he said, that's just not acceptable.
TIM WALZ: If we need to challenge in court, we'll challenge in court. But this idea that you've got to go and kiss the ring, or you've got to go and give some type of award to get basic services that he swore an oath to defend, that is outrageous. So no, I will not change how we approach that.
DANA FERGUSON: He is fresh off of a trip to Ireland, where he met with dignitaries and business leaders. And Walz said folks in other countries are just perplexed by the current moment in our country.
NINA MOINI: Dana, I know you and our colleagues in the newsroom outlined some of the other impacts Minnesota is seeing due to the shutdown here on day two. Can you talk about where those are at this point?
DANA FERGUSON: Yeah, you bet. Dan Crocker, based in Duluth, reports that Voyageurs National Park is still open, but staffing and some services are limited there. And some high-profile lawsuits filed here are on hold while resources at the US Department of Justice are diverted away from civil cases.
NINA MOINI: Dana, thanks for bringing us the latest. Appreciate it.
DANA FERGUSON: You're welcome. Thanks, Nina.
NINA MOINI: That's Dana Ferguson, a political correspondent for MPR News.
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