Purpose

The bill creates a pilot program to provide financial help for young people to take drivers education and obtain a driver's license. It aims to expand access to driver education and licensing for eligible youth ages 15 to 24, especially in underserved areas.

Main provisions

• Establishment of a drivers education financial assistance pilot program within the Department of Public Safety to award grants to eligible entities (like school districts, cities, counties, Tribes, or nonprofit groups) to help eligible youth access driver education and licensing.
• Creation of a drivers education financial assistance account in the state special revenue fund to hold appropriations and earnings, which are only usable for the pilot program and related administrative costs.
• Eligible entities work with communities to run the program at urban, rural, suburban, and Tribal locations and to recruit up to 200 eligible youth per location.
• An intermediary will run the referral system and coordinate access and support for eligible youth to complete the driver license process. Intermediaries can be reimbursed for program administration costs (up to $100,000).
• Each eligible youth can receive up to $2,000 in financial assistance, with up to $700 allowed to be used for paying fines or fees that previously blocked obtaining a license.
• Eligible uses of funds include: paying for driver education and behind-the-wheel instruction, permit and license fees, road test costs, and other courses or materials that help obtain a license.
• Youth may also use funds to pay all or part of previous fines or fees that prevented a license.
• The program requires data collection on outcomes (applications, awards, average award, successful licenses, and fines paid) and annual reporting to the Legislature.
• A work group, including youth participants and representatives from education, public safety, and economic development, will study driver education availability and funding options, with a report due by February 1, 2026 and consideration of a permanent funding mechanism.

Funding and cost

• A one-time appropriation of 3,850,000 dollars in FY 2026 from the general fund to the Department of Education is provided for the drivers education financial assistance pilot program, the required reporting, and the work group.

Eligibility and participants

• Eligible entities: school districts, cities, counties, towns, local government units, federally recognized Tribes, or nonprofit organizations that assist low-income or disadvantaged youth.
• Eligible youth: ages 15 to 24 who meet at least one specified criterion (e.g., homelessness, foster care, housing assistance, being in a juvenile diversion program, low income, out of school/out of work but in a workforce program, or other demonstrated financial hardship with lack of a valid license).
• The program emphasizes a community-driven approach and requires collaboration with school districts and community-based organizations.

Administration and implementation

• The Department of Public Safety administers the pilot and coordinates with eligible entities.
• A referral system will be operated by an intermediary chosen by the commissioner to ensure access and support.
• Participating entities must maintain records and limit administrative costs to no more than 15% of the total appropriation.
• Funding may cover private or public driver education pathways and related services (instruction, permits, licenses, road tests, materials).

Data collection and reporting

• Entities must collect data on applications, awards, average award, successful license attainment, and amounts spent on fines or fees.
• Annual reports: by February 1 each year, entities report expenditures and grants from the previous year; by January 15, 2027, the commissioner must report to legislative chairs and ranking minority members on program activities.
• The reports will describe progress, barriers, and potential permanent funding methods for expanding driver education.

Work group

• A work group will study driver education availability in Minnesota, including input from an eligible youth who received a grant.
• Members may include representatives from public and private driver education programs and higher education institutions offering driver education instructor training.
• The work group will deliver recommendations by February 1, 2026, including changes to increase access and a permanent funding mechanism.
• Public members serve without compensation, but the group may accept gifts or grants for the state’s use.
• The work group expires when the report is submitted or by June 30, 2028, whichever comes first.

Expiration and sunset

• The pilot program expires on June 30, 2028.
• The appropriation and the work group are time-limited as part of the pilot.

Significant changes to existing law

• Establishes a new drivers education financial assistance account and a pilot to fund driver education for eligible youth.
• Creates a new referral system and work group to study driver education access and funding.
• Introduces specific eligibility criteria tied to housing status, foster care, juvenile justice involvement, and other forms of financial hardship to qualify for assistance.
• Sets caps on assistance per youth and allows use of funds to pay prior fines or fees that blocked licensing.

Relevant terms - drivers education - financial assistance - pilot program - Department of Public Safety - eligible entities - eligible youth - urban, rural, suburban, Tribal communities - intermediary - private or public driver education pathways - behind-the-wheel instruction - instructional permit - drivers license - road test - data collection - reporting - work group - McKinney-Vento Homeless Assistance Act - Homeless Youth Act - extended foster care - foster care - juvenile diversion - restorative justice - general fund / special revenue fund - one-time appropriation - up to $2,000 per youth; $700 allowed for fines/fees