Purpose

• Create a Driver Education Financial Assistance Pilot Program to expand access to driver education courses and help eligible youth obtain driver licenses. The program is run by the Department of Public Safety and funded through a dedicated account, with the goal of increasing the number of youths who complete driver education and obtain licenses.

Main Provisions and What the Bill Seeks to Accomplish

• Establishment of a pilot program to award grants to eligible entities (schools, local government units, Tribes, or nonprofits) to support driver education for eligible youth aged 15 to 24.
• Creation of a Driver Education Financial Assistance Account in the state treasury’s special revenue fund to hold appropriations and earnings, and to pay for grants and certain administrative costs.
• Eligibility and participation:
  • Eligible entities must work with communities and recruit up to 200 eligible youth per location.
  • Eligible youth must meet one of several hardship criteria, including homelessness, foster care (including extended foster care), housing support, being a parent receiving assistance, being in juvenile diversion or restorative justice programs, being out of school or work and enrolled in a workforce program, or showing a demonstrated financial hardship and barriers to obtaining a license.
  • A community-driven process is required, with efforts to include urban, rural, suburban, and Tribal communities.
• Financial assistance details:
  • Each eligible youth can receive up to $2,000, with up to $700 usable for specified purposes.
  • Allowed uses include: paying for driver education and behind-the-wheel instruction, permit and license fees, road tests, other related courses or materials, and paying off certain prior fines or fees that block licensing.
  • Intermediaries running the program may be reimbursed for up to $100,000 to administer the program.
• Administrative and reporting requirements:
  • Participating entities must keep records of all awards and related expenses.
  • Administrative costs cannot exceed 15% of the total appropriation.
  • A data collection plan requires reporting on applications, awards, amounts, averages, successful licensing, and any fines/fees paid with the funds.
  • Annual reports are due, and a formal program report will be provided to legislative chairs and minority members by a specified date.
• Work group to study driver education access:
  • A work group, including at least one eligible youth and representatives from education, public safety, and economic development sectors, will analyze availability, geographic access, barriers for low-income students, and potential permanent funding sources.
  • The work group must be supported by staff, hold meetings by a deadline, and submit a written report with recommendations for changing driver education access and funding mechanisms.
  • Public members serve without compensation; gifts and grants may be accepted on behalf of the state to support the work group.
  • The work group expires after the report is submitted or by June 30, 2028, whichever comes first.
• Expiration of the pilot program:
  • The driver education pilot program expires on June 30, 2028.

How It Will Work in Practice (Administration & Implementation)

• The commissioner of Public Safety will coordinate the pilot with eligible entities and ensure a broad community reach.
• Eligible entities will apply to participate and must partner with schools and community organizations serving underserved and low-income populations.
• An intermediary organization will run a referral system to connect eligible youth to funds and driving-education pathways, with oversight and reimbursement for its administration.
• Participating youth can use funds to cover the costs of education, testing, and licensing activities, as well as removing licensing barriers caused by prior fines or fees.

Significant Changes to Existing Law

• Introduces a new Driver Education Financial Assistance Pilot Program and a dedicated funding mechanism (Driver Education Financial Assistance Account) within the special revenue fund.
• Establishes a formal process for grants to eligible entities and a defined maximum award per youth.
• Creates a structured data collection and reporting regime to monitor program outcomes.
• Delegates authority to form a work group charged with assessing statewide driver education availability and identifying permanent funding options.
• Expands eligibility criteria for receiving driver education financial assistance to include various hardship and protective-service categories (homelessness, foster care, housing support, juvenile diversion, MFIP, etc.).

Expiration and Funding

• Onetime appropriation of 3.85 million dollars in fiscal year 2026 from the general fund to the Department of Education to support the pilot program, reporting, and the work group.
• The pilot program and related reporting/work group provisions expire by June 30, 2028, or earlier if the required reports are completed.

Relevant Terms - drivers education - financial assistance pilot program - eligible youth - eligible entities - Department of Public Safety - special revenue fund - driver education financial assistance account - urban, rural, suburban, Tribal - intermediary - behind-the-wheel instruction - driving permit and license fees - road test - homelessness - McKinney-Vento Homeless Assistance Act - Homeless Youth Act - Foster care / extended foster care - Minnesota Family Investment Program (MFIP) - juvenile diversion / restorative justice - workforce program - data collection and reporting - work group - permanent funding mechanism - appropriation