HF2440

HF2440 (Legislative Session 94 (2025-2026))

Biennial budget for Department of Employment and Economic Development and Explore Minnesota established, various policy changes made, reports required, and money appropriated.

Related bill: SF1832

AI Generated Summary

Purpose of the Bill

The bill is designed to establish a biennial budget for the Minnesota Department of Employment and Economic Development (DEED) and Explore Minnesota. It aims to allocate funding, make policy changes, and require reports to enhance economic development, address workforce needs, and support various community programs across the state.

Main Provisions

Appropriations: The bill allocates funding for fiscal years 2026 and 2027 to various departments, focusing on job creation, community development, workforce training, and small business support.
Business and Community Development: It provides grants for energy transition, small business development, contaminated site cleanup, child care support, and community energy transition among other initiatives.
Workforce Development: The bill supports rural career counseling, high-wage and high-demand job training for women, workforce development programs for disadvantaged communities, and provides funds for job skills training and economic disparities relief, particularly in the Southeast Asian community.
Vocational Rehabilitation: Funding is provided for rehabilitation programs for individuals with disabilities and grants for independent living centers.

Significant Changes to Existing Law

Grant Increases: The bill increases the maximum allowable grant for certain educational or training institutions from $400,000 to $500,000.
New Programs: It introduces new programs and funds such as the PROMISE grant program and the Drive for Five Initiative to boost workforce and economic support.
Flexibility in Fund Use: It allows for more flexible use of existing funds to better compete with other states for business investments and to support federal program requirements.

Relevant Terms

Biennial budget
Business development
Workforce training
Child care support
Vocational Rehabilitation
Economic disparities
PROMISE grant program
Emerging entrepreneur program

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 16, 2025	House	Floor	Action	Introduction and first reading, referred to	Workforce, Labor, and Economic Development Finance and Policy

Citations

[
  {
    "analysis": {
      "added": [
        "New allocation to match federal funds for small business development consulting and technical services."
      ],
      "removed": [],
      "summary": "The bill allocates funds for grants to small business development centers, allowing them to match funds under federal programs like the Small Business Development Center (SBDC) program.",
      "modified": []
    },
    "citation": "116J.68"
  },
  {
    "analysis": {
      "added": [
        "Federal matching program for allocation of state funds to small businesses."
      ],
      "removed": [],
      "summary": "References the federal code related to the SBDC program for utilization of matched funds.",
      "modified": [
        "Clarification of fund usage towards federal matching requirements."
      ]
    },
    "citation": "15 section 648"
  },
  {
    "analysis": {
      "added": [
        "New financial appropriations for site cleanup and development."
      ],
      "removed": [],
      "summary": "Funds are appropriated for contaminated site cleanup and development grants under these Minnesota Statutes.",
      "modified": [
        "Clarification on fund availability until expended for contaminated site grants."
      ]
    },
    "citation": "116J.551 to 116J.558"
  },
  {
    "analysis": {
      "added": [
        "Allocations for additional redevelopment projects."
      ],
      "removed": [],
      "summary": "Appropriation towards redevelopment programs, allowing flexibility in fund usage.",
      "modified": [
        "Enables discretion in reassigning funds between investment and redevelopment programs."
      ]
    },
    "citation": "116J.575 and 116J.5761"
  },
  {
    "analysis": {
      "added": [
        "New appropriations for extended job skills training program."
      ],
      "removed": [],
      "summary": "The statute outlines the framework for Minnesota's job skills partnership program, receiving consistent funding.",
      "modified": [
        "Funding timelines and flexibility extended for program execution."
      ]
    },
    "citation": "116L.01 to 116L.17"
  },
  {
    "analysis": {
      "added": [
        "Budget allocations for continued job training initiatives."
      ],
      "removed": [],
      "summary": "Describes the allocation of workforce development funds for job training grants.",
      "modified": [
        "Slight changes in fund allocation for job training grants each year."
      ]
    },
    "citation": "116L.41"
  },
  {
    "analysis": {
      "added": [
        "Clarifies geographic focus for economic development and childcare grants."
      ],
      "removed": [],
      "summary": "Defines geographic areas related to funding allocations outside the seven-county metropolitan area.",
      "modified": []
    },
    "citation": "473.121 subdivision 2"
  }
]