Its passage allows the state to get an extension to continue using standard driver's licenses to board planes until October 2020.
The federal requirements were first put in place by Congress in 2005 as a terrorism response measure, but some states resisted what they saw as a heavy-handed rule that raised privacy concerns.
The votes, 120-11 in the House and 57-8 in the Senate, came Wednesday to help end the saga of bringing Real ID to the state.
Gov. Mark Dayton and top Republicans have been trading offers in private meetings this week to solve a $1 billion gap in budget negotiations. Daudt balked at the idea but said he would hear out Gazelka.
The impasse is reminiscent of what happened in 2011, the last time Dayton and a Republican-controlled Legislature faced off to pass a two-year state budget.
"I think this is fair and equitable, half and half - meet halfway", Dayton said.
Minnesotans can continue to use their current driver's license as a form of identification to board domestic flights until January 22, 2018.
"What Minnesotans need to know is that once the governor signs the bill that they are going to be able to fly come January of 2018 without hindrance", Smith said.
Minnesota has adopted the federal Real ID standards for driver's licenses after years of debate.
Because of when their driver's license expires, some people may choose to renew their license early in order to get a REAL ID compliant card once they become available.
State officials expect to begin issuing the new IDs sometime next year.
While prospects for settling the budget remained cloudy, the Real ID agreement constituted actual progress on a long-unresolved issue. Warren Limmer, R-Maple Grove. House Speaker Kurt Daudt says, "His offer was about two-thirds his direction and one-third our direction, and frankly that's just not helpful with just a few days left".
"Gov. Dayton says GOP lawmakers made a "serious" budget offer this morning", Hauser tweeted.