HF2440

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