Capitol View for January 15

Good morning. It’s Martin Luther King Jr. Day and caucus day in Iowa.

Tune in at 9 am for a special edition of Politics Friday. On a Monday? Yes, a Monday. Today is the kickoff of voting in the 2024 presidential race. Brian will chat with political reporter Clay Masters about what’s shaping up in Iowa, Minnesota Secretary of State Steve Simon about preparations underway in Minnesota, and political pros, Republican Jennifer DeJournett and DFLer Corey Day, about the landscape ahead. We’ll be back to regularly scheduled programming Feb. 16, the first week of the Legislative Session.

Gov. Tim Walz took a road trip to Iowa this weekend, and U.S. Sen. Tina Smith is due there today. The Minnesota Democrats are appearing on behalf of President Joe Biden as Republicans await the outcome of the nomination voting opener. Democrats pushed Iowa back in the process so nothing will be decided tonight on their end of the ballot. Former President Donald Trump is widely expected to win Iowa, with all eyes on the margin. Walz is road-testing a new line about the GOP hopefuls. “They're just different flavors of the same Kool Aid,” he told MPR’s Clay Masters. He said something similar during a national TV appearance on Meet The Press.

The Minnesota Republican Party is out of power in St. Paul and still lacks a credible U.S. Senate candidate against Sen. Amy Klobuchar. But the party is also trying to patch up fissures in its own ranks as it tries to regroup. The Minnesota House is the main state focus. The Star Tribune’s Briana Bierschbach and Ryan Faircloth outline the party’s struggles and the internal calls to do better at rowing in the same direction.

Minnesota pillow mogul Mike Lindell is losing a friendly spot to advertise. MyPillow commercials will no longer appear on Fox News after a payment dispute. It’s the latest sign of struggle for Lindell, an outspoken Trump supporter who faces ongoing lawsuits and other fallout over his false claims about the 2020 election.

Governor Tim Walz, U.S. Rep. Pete Stauber and other Minnesota leaders are making a last-ditch attempt to convince the IRS not to tax Minnesota rebate taxes as income. While other states have been able to bill similar programs as “pandemic era relief”, Dana reports that Walz signed the tax rebate check bill into law 12 days after the federal pandemic emergency declaration expired. The pressure from both parties for the IRS to reverse their decision comes ahead of the Jan. 29 opening day for taxpayers to file taxes. As it currently stands, taxpayers will have to claim the rebate check as income when filing federal returns in 2023. Walz told Masters on Sunday that he’s “not super hopeful” the IRS will change course.

More retirements are hitting the Minnesota Legislature. Seven-term Rep. Deb Kiel, R-Crookston, said she’ll leave after this term. So will sixth-term Rep. John Petersburg, R-Waseca. Both announced their departures in their home districts. The “leaving” list is growing and is now at more than a dozen.

Not a lot of student loans left? You may be eligible for forgiveness. In a move that was previously scheduled for July, the Biden administration announced Friday it will erase the debts of thousands of federal student loan borrowers. This applies to any undergraduate or graduate student who initially borrowed less than $21,000. In order for someone to be eligible, they need to have been on a repayment plan for at least 10 years. It’s part of Biden’s new SAVE plan, which exempts more of a borrower’s income from the monthly payment math and does not accumulate interest beyond what a borrower can afford to pay each month. The plan is becoming a key vehicle for Biden’s debt relief efforts following the Supreme Court snuff of his original debt relief plan. Beginning in February, borrowers enrolled in the SAVE program will be notified if their debts qualify for cancellation, with no further action required.