SF1832

SF1832 (Legislative Session 94 (2025-2026))

Biennial budget establishment for the Department of Employment and Economic Development and Explore Minnesota

Related bill: HF2440

AI Generated Summary

This bill proposes a biennial budget for the Minnesota Department of Employment and Economic Development (DEED) and Explore Minnesota for fiscal years 2026 and 2027. It includes various policy changes, appropriations, and funding allocations for economic development, workforce services, business assistance programs, and infrastructure investments.

Key Provisions:

Budget Allocations:
- Total appropriations for DEED:
  - $181.87 million in FY 2026
  - $147.09 million in FY 2027
- Funds will be distributed across business development, workforce training, and economic assistance programs.
Business and Community Development:
- $46.07 million each year for business and community development initiatives.
- $8 million annually for the Minnesota Job Creation Fund.
- $12.37 million annually for the Minnesota Investment Fund to support business growth.
- Funding for childcare expansion, rural business grants, small business technical assistance, and redevelopment programs.
Workforce Development:
- $35.75 million per year for workforce development programs.
- Funding directed for youth workforce programs, job training, career counseling, and employment assistance programs.
- Includes $8 million annually for the "Drive for Five" initiative to promote careers in high-demand industries.
Paid Family and Medical Leave:
- $40.54 million in FY 2026 and $5 million in FY 2027 from the family and medical benefit insurance account.
Vocational Rehabilitation and Services for the Blind:
- Over $39 million per year for state vocational rehabilitation programs.
- $8.4 million annually for services assisting blind Minnesotans.
Minnesota Forward Fund:
- Funds designated to match state investments with federal economic development opportunities.
- $50 million allocated for business incentives under federal programs.
Policy Changes and Amendments:
- Increases the grant cap for workforce training programs from $400,000 to $500,000.
- Expands the Minnesota Forward Fund to support high-tech and manufacturing projects.
- Modifies rules for workforce programs and economic support initiatives.
Explore Minnesota:
- Tourism promotion funding with a 6:1 private-sector match requirement.

Overall, the bill seeks to enhance Minnesota’s business environment, workforce readiness, and economic competitiveness by funding various programs and initiatives supporting businesses, workers, and communities across the state.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 23, 2025	Senate	Floor	Action	Introduction and first reading
February 23, 2025	Senate	Floor	Action	Referred to	Jobs and Economic Development

Citations

[
  {
    "analysis": {
      "added": [
        "Greater Minnesota business infrastructure grant program funding."
      ],
      "removed": [],
      "summary": "New amendments are made to the Minnesota Statutes section 116J.431, modifying business development funding.",
      "modified": []
    },
    "citation": "116J.431"
  },
  {
    "analysis": {
      "added": [
        "Transfer to the special revenue account."
      ],
      "removed": [],
      "summary": "Amendments to section 116J.8733 affecting the Minnesota Expanding Opportunity Fund Program.",
      "modified": []
    },
    "citation": "116J.8733"
  },
  {
    "analysis": {
      "added": [
        "Increase in maximum single grant amount."
      ],
      "removed": [],
      "summary": "Changes in section 116L.04 related to the partnership program grant limits.",
      "modified": []
    },
    "citation": "116L.04"
  },
  {
    "analysis": {
      "added": [
        "Clarifies 'net impact' and 'pre-enrollment' definitions."
      ],
      "removed": [],
      "summary": "Definitions under section 116L.98 are amended for program evaluation.",
      "modified": []
    },
    "citation": "116L.98"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Amendments to section 469.54 regarding economic development programs.",
      "modified": []
    },
    "citation": "469.54"
  },
  {
    "analysis": {
      "added": [
        "Funding for maintaining prior rate increases."
      ],
      "removed": [],
      "summary": "Additions to the employment services for Minnesotans with severe disabilities under section 268A.15.",
      "modified": []
    },
    "citation": "268A.15"
  },
  {
    "analysis": {
      "added": [
        "Grants for programs to support employment."
      ],
      "removed": [],
      "summary": "Funding changes for mental illness employment support under section 268A.13.",
      "modified": []
    },
    "citation": "268A.13"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Modifications involving employment support services under section 268A.14.",
      "modified": []
    },
    "citation": "268A.14"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Grants to centers for independent living are expanded under section 268A.11.",
      "modified": []
    },
    "citation": "268A.11"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Provisions for employment services funding under section 268A.16.",
      "modified": []
    },
    "citation": "268A.16"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Metropolitan area definition under section 473.121 used in fund allocation.",
      "modified": []
    },
    "citation": "473.121"
  },
  {
    "analysis": {
      "added": [
        "Annual allocation for family and medical insurance."
      ],
      "removed": [],
      "summary": "Paid leave policies financed through section 268B funds.",
      "modified": []
    },
    "citation": "268B"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Usage requirements for private sector contributions under section 116U.05.",
      "modified": []
    },
    "citation": "116U.05"
  }
]