ARTICLE 1

APPROPRIATIONS

ARTICLE 2

EMPLOYMENT AND ECONOMIC DEVELOPMENT POLICY

Section 1. new text begin APPROPRIATIONS.
new text end

Sec. 2. new text begin DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT
new text end

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin Subd. 7. new text end

new text begin Subd. 8. new text end

new text begin Subd. 9. new text end

Sec. 3. new text begin EXPLORE MINNESOTA
new text end

Section 1.

Subd. 2.

Sec. 2.

Sec. 7. APPROPRIATIONS.

Sec. 3.

Subdivision 1.

Sec. 4.

Subd. 1a.

Sec. 5.

Subd. 2.

Sec. 6.

Subd. 2.

new text begin EFFECTIVE DATE. new text end

Sec. 7.

Subd. 4.

Sec. 8.

Subd. 2.

new text begin Total Appropriation
new text end

new text begin Business and Community Development
new text end

new text begin Workforce Development Services
new text end

new text begin General Support Services
new text end

new text begin Minnesota Trade Office
new text end

new text begin Vocational Rehabilitation
new text end

new text begin Services for the Blind
new text end

new text begin Broadband Development
new text end

new text begin Paid Leave
new text end

Purpose.

Partnership program.

Pathways program.

Definitions.

Business and Community Development

deleted text begin Revolving loan funddeleted text end new text begin Minnesota expanding opportunity accountnew text end .

Business and Community Development

Engrossments
Introduction PDF	Posted on 03/17/2025
1st Engrossment PDF	Posted on 04/21/2025

new text begin (a) The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2026" and "2027" used in this article mean that the appropriations
listed under them are available for the fiscal year ending June 30, 2026, or June 30, 2027,
respectively. "The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The
biennium" is fiscal years 2026 and 2027.
new text end

new text begin (b) If an appropriation in this article is enacted more than once in the 2025 regular or
special legislative session, the appropriation must be given effect only once.
new text end

new text begin $
new text end

new text begin 181,873,000
new text end

new text begin $
new text end

new text begin 147,099,000
new text end

new text begin Appropriations by Fund new text end
	new text begin 2026 new text end	new text begin 2027 new text end
new text begin General new text end	new text begin 109,352,000 new text end	new text begin 110,122,000 new text end
new text begin Remediation new text end	new text begin 700,000 new text end	new text begin 700,000 new text end
new text begin Workforce Development new text end	new text begin 31,277,000 new text end	new text begin 31,277,000 new text end
new text begin Family and Medical Benefit Insurance new text end	new text begin 40,544,000 new text end	new text begin 5,000,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 46,067,000 new text end	new text begin 46,067,000 new text end
new text begin Remediation new text end	new text begin 700,000 new text end	new text begin 700,000 new text end
new text begin Workforce Development new text end	new text begin 1,350,000 new text end	new text begin 1,350,000 new text end

new text begin (a) $350,000 each year is for the
administration of the energy transition office
under Minnesota Statutes, section 116J.5491.
new text end

new text begin (b) $500,000 each year is for grants to small
business development centers under Minnesota
Statutes, section 116J.68. Money made
available under this paragraph may be used to
match funds under the federal Small Business
Development Center (SBDC) program under
United States Code, title 15, section 648, to
provide consulting and technical services or
to build additional SBDC network capacity to
serve entrepreneurs and small businesses.
new text end

new text begin (c) $2,725,000 each year is for the small
business assistance partnerships program
under Minnesota Statutes, section 116J.682.
All grant awards shall be for two consecutive
years. Grants shall be awarded in the first year.
The department may use up to five percent of
the appropriation for administrative purposes.
new text end

new text begin (d) $1,772,000 each year is for contaminated
site cleanup and development grants under
Minnesota Statutes, sections 116J.551 to
116J.558. This appropriation is available until
expended.
new text end

new text begin (e) $700,000 each year is from the remediation
fund for contaminated site cleanup and
development grants under Minnesota Statutes,
sections 116J.551 to 116J.558. This
appropriation is available until expended.
new text end

new text begin (f) $139,000 each year is for the Center for
Rural Policy and Development.
new text end

new text begin (g) $25,000 each year is for the administration
of state aid for the Destination Medical Center
Corporation under Minnesota Statutes,
sections 469.40 to 469.47.
new text end

new text begin (h) $875,000 each year is for the host
community economic development program
established in Minnesota Statutes, section
116J.548.
new text end

new text begin (i)(1) $1,500,000 each year is for grants to
local communities to increase the number of
quality child care providers to support
economic development. Fifty percent of grant
funds must go to communities located outside
the seven-county metropolitan area as defined
in Minnesota Statutes, section 473.121,
subdivision 2.
new text end

new text begin (2) Grant recipients must obtain a 50 percent
nonstate match to grant funds in either cash
or in-kind contribution, unless the
commissioner waives the requirement. Grant
funds available under this subdivision must
be used to implement projects to reduce the
child care shortage in the state, including but
not limited to funding for child care business
start-ups or expansion, training, facility
modifications, direct subsidies or incentives
to retain employees, or improvements required
for licensing, and assistance with licensing
and other regulatory requirements. In awarding
grants, the commissioner must give priority
to communities that have demonstrated a
shortage of child care providers.
new text end

new text begin (3) Within one year of receiving grant funds,
grant recipients must report to the
commissioner on the outcomes of the grant
program, including but not limited to the
number of new providers, the number of
additional child care provider jobs created, the
number of additional child care slots, and the
amount of cash and in-kind local funds
invested. Within one month of all grant
recipients reporting on program outcomes, the
commissioner must report the grant recipients'
outcomes to the chairs and ranking members
of the legislative committees with jurisdiction
over early learning and child care and
economic development.
new text end

new text begin (j) $500,000 each year is for the Office of
Child Care Community Partnerships. Of this
amount:
new text end

new text begin (1) $450,000 each year is for administration
of the Office of Child Care Community
Partnerships; and
new text end

new text begin (2) $50,000 each year is for the Labor Market
Information Office to conduct research and
analysis related to the child care industry.
new text end

new text begin (k) $1,000,000 each year is for a grant to the
Minnesota Initiative Foundations. This
appropriation is available until June 30, 2029.
The Minnesota Initiative Foundations must
use grant funds under this section to:
new text end

new text begin (1) facilitate planning processes for rural
communities resulting in a community solution
action plan that guides decision making to
sustain and increase the supply of quality child
care in the region to support economic
development;
new text end

new text begin (2) engage the private sector to invest local
resources to support the community solution
action plan and ensure quality child care is a
vital component of additional regional
economic development planning processes;
new text end

new text begin (3) provide locally based training and technical
assistance to rural child care business owners
individually or through a learning cohort.
Access to financial and business development
assistance must prepare child care businesses
for quality engagement and improvement by
stabilizing operations, leveraging funding from
other sources, and fostering business acumen
that allows child care businesses to plan for
and afford the cost of providing quality child
care; and
new text end

new text begin (4) recruit child care programs to participate
in quality rating and improvement
measurement programs. The Minnesota
Initiative Foundations must work with local
partners to provide low-cost training,
professional development opportunities, and
continuing education curricula. The Minnesota
Initiative Foundations must fund, through local
partners, an enhanced level of coaching to
rural child care providers to obtain a quality
rating through measurement programs.
new text end

new text begin (l) $8,000,000 each year is for the Minnesota
job creation fund under Minnesota Statutes,
section 116J.8748. Of this amount, the
commissioner of employment and economic
development may use up to three percent for
administrative expenses. This appropriation
is available until expended.
new text end

new text begin (m) $12,370,000 each year is for the
Minnesota investment fund under Minnesota
Statutes, section 116J.8731. Of this amount,
the commissioner of employment and
economic development may use up to three
percent for administration and monitoring of
the program. This appropriation is available
until expended. Notwithstanding Minnesota
Statutes, section 116J.8731, money
appropriated to the commissioner for the
Minnesota investment fund may be used for
the redevelopment program under Minnesota
Statutes, sections 116J.575 and 116J.5761, at
the discretion of the commissioner. Grants
under this paragraph are not subject to the
grant amount limitation under Minnesota
Statutes, section 116J.8731.
new text end

new text begin (n) $2,246,000 each year is for the
redevelopment program under Minnesota
Statutes, sections 116J.575 and 116J.5761.
new text end

new text begin (o) $1,000,000 each year is for the Minnesota
emerging entrepreneur loan program under
Minnesota Statutes, section 116M.18. Funds
available under this paragraph are for transfer
into the emerging entrepreneur program
special revenue fund account created under
Minnesota Statutes, chapter 116M, and are
available until expended. Of this amount, up
to four percent is for administration and
monitoring of the program.
new text end

new text begin (p) $12,000 each year is for a grant to the
Upper Minnesota Film Office.
new text end

new text begin (q) $4,195,000 each year is for the Minnesota
job skills partnership program under
Minnesota Statutes, sections 116L.01 to
116L.17. If the appropriation for either year
is insufficient, the appropriation for the other
year is available. This appropriation is
available until expended.
new text end

new text begin (r) $1,350,000 each year from the workforce
development fund is for jobs training grants
under Minnesota Statutes, section 116L.41.
new text end

new text begin (s) $250,000 each year is for the publication,
dissemination, and use of labor market
information under Minnesota Statutes, section
116J.401.
new text end

new text begin (t) $3,000,000 each year is for transfer to the
CanStartup revolving loan account established
under Minnesota Statutes, section 116J.659,
subdivision 3. Of this amount, up to four
percent may be used for administrative
purposes. Any unencumbered balances
remaining in the first year do not cancel but
are available for the second year.
new text end

new text begin (u) $1,000,000 each year is for the
CanNavigate program established under
Minnesota Statutes, section 116J.6595. Of this
amount, up to four percent may be used for
administrative purposes. Any unencumbered
balances remaining in the first year do not
cancel but are available for the second year.
new text end

35,748,000

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 13,746,000 new text end	new text begin 13,746,000 new text end
new text begin Workforce Development new text end	new text begin 22,002,000 new text end	new text begin 22,002,000 new text end

new text begin (a) $500,000 each year from the general fund
and $500,000 each year from the workforce
development fund are for rural career
counseling coordinators in the workforce
service areas and for the purposes specified
under Minnesota Statutes, section 116L.667.
new text end

new text begin (b) $750,000 each year is for the women and
high-wage, high-demand, nontraditional jobs
grant program under Minnesota Statutes,
section 116L.99. Of this amount, up to five
percent is for administration and monitoring
of the program.
new text end

new text begin (c) $2,546,000 each year from the general fund
and $4,604,000 each year from the workforce
development fund are for the pathways to
prosperity competitive grant program. Of this
amount, up to five percent is for administration
and monitoring of the program.
new text end

new text begin (d) $500,000 each year is from the workforce
development fund for current Minnesota
affiliates of OIC of America, Inc. This
appropriation shall be divided equally among
the eligible centers.
new text end

new text begin (e) $1,000,000 each year is for competitive
grants to organizations providing services to
relieve economic disparities in the Southeast
Asian community through workforce
recruitment, development, job creation,
assistance of smaller organizations to increase
capacity, and outreach. Of this amount, up to
five percent is for administration and
monitoring of the program.
new text end

new text begin (f) $1,000,000 each year is for a competitive
grant program to provide grants to
organizations that provide support services for
individuals, such as job training, employment
preparation, internships, job assistance to
parents, financial literacy, academic and
behavioral interventions for low-performing
students, and youth intervention. Grants made
under this section must focus on low-income
communities, young adults from families with
a history of intergenerational poverty, and
communities of color. Of this amount, up to
five percent is for administration and
monitoring of the program.
new text end

new text begin (g) $750,000 each year from the general fund
and $3,348,000 each year from the workforce
development fund are for the youth-at-work
competitive grant program under Minnesota
Statutes, section 116L.562. Of this amount,
up to five percent is for administration and
monitoring of the youth workforce
development competitive grant program. All
grant awards shall be for two consecutive
years. Grants shall be awarded in the first year.
new text end

new text begin (h) $1,000,000 each year is from the
workforce development fund for the
youthbuild program under Minnesota Statutes,
sections 116L.361 to 116L.366.
new text end

new text begin (i) $4,050,000 each year is from the workforce
development fund for the Minnesota youth
program under Minnesota Statutes, sections
116L.56 and 116L.561.
new text end

new text begin (j) $1,275,000 each year is for the
transformative career pathways workforce
grants under Minnesota Statutes, section
116L.43. The department may use up to five
percent of this appropriation for
administration, monitoring, and oversight of
the program.
new text end

new text begin (k) $25,000 each year is for a grant to the
University of Minnesota Tourism Center for
ongoing system maintenance, management,
and content updates of an online hospitality
training program in partnership with Explore
Minnesota Tourism. This training program
must be made available at no cost to
Minnesota residents in an effort to address
critical workforce shortages in the hospitality
and tourism industries and assist in career
development.
new text end

new text begin (l) $150,000 each year is for prevailing wage
staff under Minnesota Statutes, section
116J.871, subdivision 2.
new text end

new text begin (m) $750,000 each year is for the Office of
New Americans under Minnesota Statutes,
section 116J.4231.
new text end

new text begin (n) $2,000,000 each year is for the CanTrain
program established under Minnesota Statutes,
section 116L.90. Of this amount, up to four
percent may be used for administrative
purposes.
new text end

new text begin (o) $3,000,000 each year is for the Service to
Success initiative. Of this amount:
new text end

new text begin (1) $600,000 each year is for the Office of
Public Service, established under Minnesota
Statutes, section 116J.9921;
new text end

new text begin (2) $150,000 each year is for transfer to the
Department of Education to support career
pathways development;
new text end

new text begin (3) $2,250,000 each year is for grants to
expand service opportunities, including but
not limited to ServeMinnesota Innovation Act,
Minnesota Statutes, sections 124D.37 to
124D.45; the Domestic and Volunteer Service
Act of 1973, United States Code, title 42,
section 4950; and the National and
Community Service Act of 1990, United States
Code, title 42, section 12501. Of this amount,
up to ten percent may be used for
administration of the grants; and
new text end

new text begin (4) the base for this appropriation is $500,000
in fiscal year 2028 and each year thereafter.
new text end

new text begin Of this amount, up to $150,000 may be
transferred to the Department of Education to
support career pathways development.
new text end

new text begin (p) $8,000,000 each year is from the
workforce development fund for the Drive for
Five Initiative to conduct outreach and provide
job skills training, career counseling, case
management, and supportive services for
careers in technology, labor, the caring
professions, manufacturing, and educational
and professional services. This is a onetime
appropriation.
new text end

new text begin (q) Of the amount appropriated in paragraph
(p), the commissioner must make $4,500,000
each year available through a competitive
request for proposal process. The grant awards
must be used to provide education and training
in the five industries identified in paragraph
(p). Education and training may include:
new text end

new text begin (1) student tutoring and testing support
services;
new text end

new text begin (2) training and employment placement in
high-wage and high-growth employment;
new text end

new text begin (3) assistance in obtaining industry-specific
certifications;
new text end

new text begin (4) remedial training leading to enrollment in
employment training programs or services;
new text end

new text begin (5) real-time work experience;
new text end

new text begin (6) career and educational counseling;
new text end

new text begin (7) work experience and internships; and
new text end

new text begin (8) supportive services.
new text end

new text begin (r) Of the amount appropriated in paragraph
(p), $2,000,000 each year must be awarded
through competitive grants made to trade
associations or chambers of commerce for job
placement services. Grant awards must be used
to encourage workforce training efforts to
ensure that efforts are aligned with employer
demands and that graduates are connected with
employers that are currently hiring. Trade
associations or chambers of commerce must
partner with employers with current or
anticipated employment opportunities and
nonprofit workforce training partners
participating in this program. The trade
associations or chambers of commerce must
work closely with the industry sector training
providers in the five industries identified in
paragraph (p). Grant awards may be used for:
new text end

new text begin (1) employer engagement strategies to align
employment opportunities for individuals
exiting workforce development training
programs. Strategies may include business
recruitment, job opening development,
employee recruitment, and job matching.
Trade associations must utilize the state's labor
exchange system;
new text end

new text begin (2) diversity, inclusion, and retention training
of their members to increase the business'
understanding of welcoming and retaining a
diverse workforce; and
new text end

new text begin (3) industry-specific training.
new text end

new text begin (s) Of the amount appropriated in paragraph
(p), $1,500,000 each year is to hire, train, and
deploy business services representatives in
local workforce development areas throughout
the state. Business services representatives
must work with an assigned local workforce
development area to address the hiring needs
of Minnesota's businesses by connecting job
seekers and program participants in the
CareerForce system. Business services
representatives serve in the classified service
of the state and operate as part of the agency's
Employment and Training Office. The
commissioner shall develop and implement
training materials and reporting and evaluation
procedures for the activities of the business
services representatives. The business services
representatives must:
new text end

new text begin (1) serve as the primary contact for businesses
in that area;
new text end

new text begin (2) actively engage employers by assisting
with matching employers to job seekers by
referring candidates, convening job fairs, and
assisting with job announcements;
new text end

new text begin (3) work with the local area board and its
partners to identify candidates for openings in
small and midsize companies in the local area;
and
new text end

new text begin (4) engage in workforce innovation solutions.
new text end

new text begin (t) Base level adjustments. The general fund
base is $11,246,000 in fiscal year 2028 and
$11,246,000 in fiscal year 2029. The
workforce development base is $14,002,000
in fiscal year 2028 and $14,002,000 in fiscal
year 2029.
new text end

6,605,000

7,375,000

new text begin Appropriations by Fund new text end
new text begin General Fund new text end	new text begin 6,510,000 new text end	new text begin 7,280,000 new text end
new text begin Workforce Development new text end	new text begin 95,000 new text end	new text begin 95,000 new text end

new text begin $1,269,000 each year from the general fund
is for transfer to the Minnesota Housing
Finance Agency for operating the Olmstead
Compliance Office.
new text end

2,242,000

new text begin (a) $300,000 each year is for the STEP grants
in Minnesota Statutes, section 116J.979.
new text end

new text begin (b) $180,000 each year is for the Invest
Minnesota marketing initiative in Minnesota
Statutes, section 116J.9781.
new text end

new text begin (c) $270,000 each year is for the Minnesota
Trade Offices under Minnesota Statutes,
section 116J.978.
new text end

39,191,000

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 31,361,000 new text end	new text begin 31,361,000 new text end
new text begin Workforce Development new text end	new text begin 7,830,000 new text end	new text begin 7,830,000 new text end

new text begin (a) $14,300,000 each year is for the state's
vocational rehabilitation program under
Minnesota Statutes, chapter 268A.
new text end

new text begin (b) $11,495,000 each year from the general
fund and $6,830,000 each year from the
workforce development fund are for extended
employment services for persons with severe
disabilities under Minnesota Statutes, section
268A.15. Of the amounts appropriated from
the general fund, $4,500,000 each year is for
maintaining prior rate increases to providers
of extended employment services for persons
with severe disabilities under Minnesota
Statutes, section 268A.15.
new text end

new text begin (c) $2,555,000 each year is for grants to
programs that provide employment support
services to persons with mental illness under
Minnesota Statutes, sections 268A.13 and
268A.14.
new text end

new text begin (d) $3,011,000 each year is for grants to
centers for independent living under
Minnesota Statutes, section 268A.11.
new text end

new text begin (e) $1,000,000 each year is from the workforce
development fund for grants under Minnesota
Statutes, section 268A.16, for employment
services for persons, including transition-age
youth, who are deaf, deafblind, or
hard-of-hearing. If the amount in the first year
is insufficient, the amount in the second year
is available in the first year.
new text end

8,425,000

new text begin Of this amount, $500,000 each year is for
senior citizens who are becoming blind. At
least one-half of the funds for this purpose
must be used to provide training services for
seniors who are becoming blind. Training
services must provide independent living skills
to seniors who are becoming blind to allow
them to continue to live independently in their
homes.
new text end

1,001,000

40,544,000

5,000,000

new text begin $40,544,000 the first year and $5,000,000 the
second year are from the family and medical
benefit insurance account for the purposes of
Minnesota Statutes, chapter 268B.
new text end

new text begin $
new text end

new text begin 17,981,000
new text end

new text begin $
new text end

new text begin 18,108,000
new text end

new text begin $500,000 each year must be matched from
nonstate sources to develop maximum private
sector involvement in tourism. Each $1 of state
incentive must be matched with $6 of private
sector money. "Matched" means revenue to
the state or documented in-kind, soft match,
or cash expenditures directly expended to
support Explore Minnesota under Minnesota
Statutes, section 116U.05. The incentive in
fiscal year 2026 is based on fiscal year 2025
private sector contributions. The incentive in
fiscal year 2027 is based on fiscal year 2026
private sector contribution. This incentive is
ongoing.
new text end

Minnesota Statutes 2024, section 116J.8752, subdivision 2, is amended to read:

The Minnesota forward fund account is created to increase the state's
competitiveness by providing the state the authority and flexibility to facilitate private
investment. The fund serves as a closing fund to allow the authority and flexibility to
negotiate incentives to better compete with other states for business retention, expansion
and attraction of projects in existing and new industries, new text begin and new text end develop properties for business
usedeleted text begin , and leverage to meet matching requirements of federal fundingdeleted text end for resiliency in economic
security and economic enhancement opportunities that provide the public high-quality
employment opportunities.

Laws 2023, chapter 53, article 21, section 7, as amended by Laws 2024, chapter
120, article 1, section 12; Laws 2024, chapter 125, article 8, section 9; and Laws 2024,
chapter 127, article 53, section 9, is amended to read:

(a) $50,000,000 in fiscal year 2024 is appropriated from the Minnesota forward fund
account to the commissioner of employment and economic development deleted text begin for providing
businesses with matching funds required by federal programsdeleted text end . Money awarded under this
program is made retroactive to February 1, 2023, for applications and projects. The
commissioner may use up to two percent of this appropriation for administration. This is a
onetime appropriation and is available until deleted text begin June 30, 2027deleted text end new text begin spentnew text end . deleted text begin Any funds that remain
unspent are canceled to the general fund.
deleted text end

(b) $100,000,000 in fiscal year 2024 is appropriated from the Minnesota forward fund
account to the commissioner of employment and economic development to match existing
federal funds made available in the Consolidated Appropriations Act, Public Law 117-328.
This appropriation must be used to (1) construct and operate a bioindustrial manufacturing
pilot innovation facility, biorefinery, or commercial campus utilizing agricultural feedstocks
or (2) for a Minnesota aerospace center for research, development, and testing, or both (1)
and (2). This appropriation is not subject to the grant limit requirements of Minnesota
Statutes, section 116J.8752, subdivisions 4, paragraph (b), and 5. Notwithstanding Minnesota
Statutes, section 116J.8752, subdivision 4, paragraph (a), this appropriation may include
land acquisition as an eligible use to construct a bioindustrial manufacturing pilot innovation
facility, a biorefinery, and an aerospace center for research, development, and testing. The
commissioner may use up to two percent of this appropriation for administration. This is a
onetime appropriation and is available until deleted text begin June 30, 2027deleted text end new text begin spentnew text end . deleted text begin Any funds that remain
unspent are canceled to the general fund.
deleted text end

(c) $240,000,000 in fiscal year 2024 is appropriated from the Minnesota forward fund
account to the commissioner of employment and economic development to match federal
funds made available in the Chips and Science Act, Public Law 117-167. Money awarded
under this program is made retroactive to February 1, 2023, for applications and projects.
This appropriation is not subject to Minnesota Statutes, section 116J.8752, subdivision 5.
The commissioner may use up two percent for administration. This is a onetime appropriation
and is available until deleted text begin June 30, 2027deleted text end new text begin spentnew text end . deleted text begin Any funds that remain unspent are canceled to
the general fund.
deleted text end

(d) The commissioner may use the appropriation under paragraph (c) to allocate up to
15 percent of the total project cost with a maximum of $75,000,000 per project for the
purpose of constructing, modernizing, or expanding commercial facilities on the front- and
back-end fabrication of leading-edge, current-generation, and mature-node semiconductors;
funding semiconductor materials and manufacturing equipment facilities; and for research
and development facilities.

(e) The commissioner may use the appropriation under paragraph (c) to award:

(1) grants to institutions of higher education for developing and deploying training
programs and to build pipelines to serve the needs of industry; and

(2) grants to increase the capacity of institutions of higher education to serve industrial
requirements for research and development that coincide with current and future requirements
of projects eligible under this section. Grant money may be used to construct and equip
facilities that serve the purpose of the industry. The maximum grant award per institution
of higher education under this section is $5,000,000 and may not represent more than 50
percent of the total project funding from other sources. Use of this funding must be supported
by businesses receiving funds under clause (1).

(f) Money appropriated in paragraphs (a), (b), and (c) may be transferred between
appropriations within the Minnesota forward fund account by the commissioner of
employment and economic development with approval of the commissioner of management
and budget. The commissioner must notify the Legislative Advisory Commission at least
15 days prior to changing appropriations under this paragraph.

Minnesota Statutes 2024, section 116L.04, subdivision 1, is amended to read:

(a) The partnership program may provide
grants-in-aid to educational or other nonprofit educational institutions using the following
guidelines:

(1) the educational or other nonprofit educational institution is a provider of training
within the state in either the public or private sector;

(2) the program involves skills training that is an area of employment need; and

(3) preference will be given to educational or other nonprofit training institutions which
serve economically disadvantaged people, minorities, or those who are victims of economic
dislocation and to businesses located in rural areas.

(b) A single grant to any one institution shall not exceed deleted text begin $400,000deleted text end new text begin $500,000new text end . A portion
of a grant may be used for preemployment training.

(c) Each institution must provide for the dissemination of summary results of a
grant-funded project, including, but not limited to, information about curriculum and all
supporting materials developed in conjunction with the grant. Results of projects developed
by any Minnesota State Colleges and Universities system institution must be disseminated
throughout the system.

new text begin (d) At the discretion of the board, higher education institutions may charge up to a
30-percent increase on the direct project costs, not including equipment costs.
new text end

Minnesota Statutes 2024, section 116L.04, subdivision 1a, is amended to read:

new text begin (a) new text end The pathways program may provide grants-in-aid
for developing programs which assist in the transition of persons from welfare to work and
assist individuals at or below 200 percent of the federal poverty guidelines. The program
is to be operated by the board. The board shall consult and coordinate with program
administrators at the Department of Employment and Economic Development to design
and provide services for temporary assistance for needy families recipients.

new text begin (b) new text end Pathways grants-in-aid may be awarded to educational or other nonprofit training
institutions or to workforce development intermediaries for education and training programs
and services supporting education and training programs that serve eligible recipients.

Preference shall be given to projects that:

(1) provide employment with benefits paid to employees;

(2) provide employment where there are defined career paths for trainees;

(3) pilot the development of an educational pathway that can be used on a continuing
basis for transitioning persons from welfare to work; and

(4) demonstrate the active participation of Department of Employment and Economic
Development workforce centers, Minnesota State College and University institutions and
other educational institutions, and local welfare agencies.

new text begin (c) new text end Pathways projects must demonstrate the active involvement and financial commitment
of a participating business. Pathways projects must be matched with cash or in-kind
contributions on at least a one-half-to-one ratio by a participating business.

new text begin (d) new text end A single grant to any one institution shall not exceed deleted text begin $400,000deleted text end new text begin $500,000new text end . A portion
of a grant may be used for preemployment training.

new text begin (e) At the discretion of the board, higher education institutions may charge up to a
30-percent increase on the direct project costs, not including equipment costs.
new text end

Minnesota Statutes 2024, section 116L.98, subdivision 2, is amended to read:

(a) For the purposes of this section, the terms defined in this
subdivision have the meanings given.

(b) "Credential" means deleted text begin postsecondarydeleted text end degrees, diplomas, licenses, and certificates
awarded in recognition of an individual's attainment of measurable technical or occupational
skills necessary to obtain employment or advance with an occupation. This definition does
not include certificates awarded by workforce investment boards or work-readiness
certificates.

(c) "Exit" means to have not received service under a workforce program for 90
consecutive calendar days. The exit date is the last date of service.

(d) "Net impact" means the use of matched control groups and regression analysis to
estimate the impacts attributable to program participation net of other factors, including
observable personal characteristics and economic conditions.

(e) "Pre-enrollment" means the period of time before an individual was enrolled in a
workforce program.

Laws 2023, chapter 53, article 20, section 2, subdivision 2, as amended by Laws
2024, chapter 120, article 1, section 6, is amended to read:

195,061,000

139,104,000

Appropriations by Fund
General	193,011,000	137,054,000
Remediation	700,000	700,000
Workforce Development	1,350,000	1,350,000

(a) $2,287,000 each year is for the greater
Minnesota business development public
infrastructure grant program under Minnesota
Statutes, section 116J.431. This appropriation
is available until June 30, 2027.

(b) $500,000 each year is for grants to small
business development centers under Minnesota
Statutes, section 116J.68. Money made
available under this paragraph may be used to
match funds under the federal Small Business
Development Center (SBDC) program under
United States Code, title 15, section 648, to
provide consulting and technical services or
to build additional SBDC network capacity to
serve entrepreneurs and small businesses.

(1) $1,500,000 is for innovation grants to
eligible Minnesota entrepreneurs or start-up
businesses to assist with their operating needs;

(2) $500,000 is for administration of Launch
Minnesota; and

(3) $500,000 is for grantee activities at Launch
Minnesota.

(d)(1) $500,000 each year is for grants to
MNSBIR, Inc., to support moving scientific
excellence and technological innovation from
the lab to the market for start-ups and small
businesses by securing federal research and
development funding. The purpose of the grant
is to build a strong Minnesota economy and
stimulate the creation of novel products,
services, and solutions in the private sector;
strengthen the role of small business in
meeting federal research and development
needs; increase the commercial application of
federally supported research results; and
develop and increase the Minnesota
workforce, especially by fostering and
encouraging participation by small businesses
owned by women and people who are Black,
Indigenous, or people of color. This is a
onetime appropriation.

(2) MNSBIR, Inc., shall use the grant money
to be the dedicated resource for federal
research and development for small businesses
of up to 500 employees statewide to support
research and commercialization of novel ideas,
concepts, and projects into cutting-edge
products and services for worldwide economic
impact. MNSBIR, Inc., shall use grant money
to:

(i) assist small businesses in securing federal
research and development funding, including
the Small Business Innovation Research and
Small Business Technology Transfer programs
and other federal research and development
funding opportunities;

(ii) support technology transfer and
commercialization from the University of
Minnesota, Mayo Clinic, and federal
laboratories;

(iii) partner with large businesses;

(iv) conduct statewide outreach, education,
and training on federal rules, regulations, and
requirements;

(v) assist with scientific and technical writing;

(vi) help manage federal grants and contracts;
and

(vii) support cost accounting and sole-source
procurement opportunities.

(e) $10,000,000 the first year is for new text begin transfer to
new text end the Minnesota Expanding Opportunity Fund
Program new text begin special revenue account new text end under
Minnesota Statutes, section 116J.8733. This
is a onetime deleted text begin appropriationdeleted text end new text begin transfernew text end and is
available until June 30, 2025.

(f) $6,425,000 each year is for the small
business assistance partnerships program
under Minnesota Statutes, section 116J.682.
All grant awards shall be for two consecutive
years. Grants shall be awarded in the first year.
The department may use up to five percent of
the appropriation for administrative purposes.
The base for this appropriation is $2,725,000
in fiscal year 2026 and each year thereafter.

(g) $350,000 each year is for administration
of the community energy transition office.

(h) $5,000,000 each year is transferred from
the general fund to the community energy
transition account for grants under Minnesota
Statutes, section 116J.55. This is a onetime
transfer.

(i) $1,772,000 each year is for contaminated
site cleanup and development grants under
Minnesota Statutes, sections 116J.551 to
116J.558. This appropriation is available until
expended.

(j) $700,000 each year is from the remediation
fund for contaminated site cleanup and
development grants under Minnesota Statutes,
sections 116J.551 to 116J.558. This
appropriation is available until expended.

(k) $389,000 each year is for the Center for
Rural Policy and Development. The base for
this appropriation is $139,000 in fiscal year
2026 and each year thereafter.

(l) $25,000 each year is for the administration
of state aid for the Destination Medical Center
under Minnesota Statutes, sections 469.40 to
469.47.

(m) $875,000 each year is for the host
community economic development program
established in Minnesota Statutes, section
116J.548.

(n) $6,500,000 each year is for grants to local
communities to increase the number of quality
child care providers to support economic
development. Fifty percent of grant money
must go to communities located outside the
seven-county metropolitan area as defined in
Minnesota Statutes, section 473.121,
subdivision 2. The base for this appropriation
is $1,500,000 in fiscal year 2026 and each year
thereafter.

Grant recipients must obtain a 50 percent
nonstate match to grant money in either cash
or in-kind contribution, unless the
commissioner waives the requirement. Grant
money available under this subdivision must
be used to implement projects to reduce the
child care shortage in the state, including but
not limited to funding for child care business
start-ups or expansion, training, facility
modifications, direct subsidies or incentives
to retain employees, or improvements required
for licensing, and assistance with licensing
and other regulatory requirements. In awarding
grants, the commissioner must give priority
to communities that have demonstrated a
shortage of child care providers.

Within one year of receiving grant money,
grant recipients must report to the
commissioner on the outcomes of the grant
program, including but not limited to the
number of new providers, the number of
additional child care provider jobs created, the
number of additional child care openings, and
the amount of cash and in-kind local money
invested. Within one month of all grant
recipients reporting on program outcomes, the
commissioner must report the grant recipients'
outcomes to the chairs and ranking members
of the legislative committees with jurisdiction
over early learning and child care and
economic development.

(o) $500,000 each year is for the Office of
Child Care Community Partnerships. Of this
amount:

(1) $450,000 each year is for administration
of the Office of Child Care Community
Partnerships; and

(2) $50,000 each year is for the Labor Market
Information Office to conduct research and
analysis related to the child care industry.

(p) $3,500,000 each year is for grants in equal
amounts to each of the Minnesota Initiative
Foundations. This appropriation is available
until June 30, 2027. The base for this
appropriation is $1,000,000 in fiscal year 2026
and each year thereafter. The Minnesota
Initiative Foundations must use grant money
under this section to:

(1) facilitate planning processes for rural
communities resulting in a community solution
action plan that guides decision making to
sustain and increase the supply of quality child
care in the region to support economic
development;

(2) engage the private sector to invest local
resources to support the community solution
action plan and ensure quality child care is a
vital component of additional regional
economic development planning processes;

(3) provide locally based training and technical
assistance to rural business owners
individually or through a learning cohort.
Access to financial and business development
assistance must prepare child care businesses
for quality engagement and improvement by
stabilizing operations, leveraging funding from
other sources, and fostering business acumen
that allows child care businesses to plan for
and afford the cost of providing quality child
care; and

(4) recruit child care programs to participate
in quality rating and improvement
measurement programs. The Minnesota
Initiative Foundations must work with local
partners to provide low-cost training,
professional development opportunities, and
continuing education curricula. The Minnesota
Initiative Foundations must fund, through local
partners, an enhanced level of coaching to
rural child care providers to obtain a quality
rating through measurement programs.

(q) $8,000,000 each year is for the Minnesota
job creation fund under Minnesota Statutes,
section 116J.8748. Of this amount, the
commissioner of employment and economic
development may use up to three percent for
administrative expenses. This appropriation
is available until expended. Notwithstanding
Minnesota Statutes, section 116J.8748, money
appropriated for the job creation fund may be
used for redevelopment under Minnesota
Statutes, sections 116J.575 and 116J.5761, at
the discretion of the commissioner.

(r) $12,370,000 each year is for the Minnesota
investment fund under Minnesota Statutes,
section 116J.8731. Of this amount, the
commissioner of employment and economic
development may use up to three percent for
administration and monitoring of the program.
This appropriation is available until expended.
Notwithstanding Minnesota Statutes, section
116J.8731, money appropriated to the
commissioner for the Minnesota investment
fund may be used for the redevelopment
program under Minnesota Statutes, sections
116J.575 and 116J.5761, at the discretion of
the commissioner. Grants under this paragraph
are not subject to the grant amount limitation
under Minnesota Statutes, section 116J.8731.

(s) $4,246,000 each year is for the
redevelopment program under Minnesota
Statutes, sections 116J.575 and 116J.5761.
The base for this appropriation is $2,246,000
in fiscal year 2026 and each year thereafter.
This appropriation is available until expended.

(t) $1,000,000 each year is for the Minnesota
emerging entrepreneur loan program under
Minnesota Statutes, section 116M.18. Money
available under this paragraph is for transfer
into the emerging entrepreneur program
special revenue fund account created under
Minnesota Statutes, chapter 116M, and are
available until expended. Of this amount, up
to four percent is for administration and
monitoring of the program.

(u) $325,000 the first year is for the Minnesota
Film and TV Board. The appropriation is
available only upon receipt by the board of $1
in matching contributions of money or in-kind
contributions from nonstate sources for every
$3 provided by this appropriation, except that
up to $50,000 is available on July 1 even if
the required matching contribution has not
been received by that date. This is a onetime
appropriation.

(v) $12,000 each year is for a grant to the
Upper Minnesota Film Office.

(w) $500,000 the first year is for a grant to the
Minnesota Film and TV Board for the film
production jobs program under Minnesota
Statutes, section 116U.26. This appropriation
is available until June 30, 2027. This is a
onetime appropriation.

(x) $4,195,000 each year is for the Minnesota
job skills partnership program under
Minnesota Statutes, sections 116L.01 to
116L.17. If the appropriation for either year
is insufficient, the appropriation for the other
year is available. This appropriation is
available until expended.

(y) $1,350,000 each year from the workforce
development fund is for jobs training grants
under Minnesota Statutes, section 116L.41.

(z) $47,475,000 the first year and $50,475,000
the second year are for the PROMISE grant
program. This is a onetime appropriation and
is available until June 30, 2027. Any
unencumbered balance remaining at the end
of the first year does not cancel but is available
the second year. Of this amount:

(1) $475,000 each year is for administration
of the PROMISE grant program;

(2) $7,500,000 each year is for grants in equal
amounts to each of the Minnesota Initiative
Foundations to serve businesses in greater
Minnesota. Of this amount, $600,000 each
year is for grants to businesses with less than
$100,000 in revenue in the prior year; and

(3) $39,500,000 the first year and $42,500,000
the second year are for grants to the
Neighborhood Development Center. Of this
amount, the following amounts are designated
for the following areas:

(i) $16,000,000 each year is for North
Minneapolis' West Broadway, Camden, or
other Northside neighborhoods. Of this
amount, $1,000,000 each year is for grants to
businesses with less than $100,000 in revenue
in the prior year;

(ii) $13,500,000 each year is for South
Minneapolis' Lake Street, 38th and Chicago,
Franklin, Nicollet, and Riverside corridors.
Of this amount, $750,000 each year is for
grants to businesses with less than $100,000
in revenue in the prior year;

(iii) $10,000,000 each year is for St. Paul's
University Avenue, Midway, Eastside, or other
St. Paul neighborhoods. Of this amount,
$750,000 each year is for grants to businesses
with less than $100,000 in revenue in the prior
year;

(iv) $1,000,000 the first year is for South
Minneapolis' Hennepin Avenue Commercial
corridor, South Hennepin Community
corridor, and Uptown Special Service District;
and

(v) $3,000,000 the second year is for grants
to businesses in the counties of Anoka, Carver,
Dakota, Hennepin, Ramsey, Scott, and
Washington, excluding the cities of
Minneapolis and St. Paul.

(aa) $15,150,000 each year is for the
PROMISE loan program. This is a onetime
appropriation and is available until June 30,
2027. Of this amount:

(1) $150,000 each year is for administration
of the PROMISE loan program;

(2) $3,000,000 each year is for grants in equal
amounts to each of the Minnesota Initiative
Foundations to serve businesses in greater
Minnesota; and

(3) $12,000,000 each year is for grants to the
Metropolitan Economic Development
Association (MEDA). Of this amount, the
following amounts are designated for the
following areas:

(i) $4,500,000 each year is for North
Minneapolis' West Broadway, Camden, or
other Northside neighborhoods;

(ii) $4,500,000 each year is for South
Minneapolis' Lake Street, 38th and Chicago,
Franklin, Nicollet, and Riverside corridors;
and

(iii) $3,000,000 each year is for St. Paul's
University Avenue, Midway, Eastside, or other
St. Paul neighborhoods.

(bb) $1,500,000 each year is for a grant to the
Metropolitan Consortium of Community
Developers for the community wealth-building
grant program pilot project. Of this amount,
up to two percent is for administration and
monitoring of the community wealth-building
grant program pilot project. This is a onetime
appropriation.

(cc) $250,000 each year is for the publication,
dissemination, and use of labor market
information under Minnesota Statutes, section
116J.401.

(dd) $5,000,000 the first year is for a grant to
the Bloomington Port Authority to provide
funding for the Expo 2027 host organization.
The Bloomington Port Authority must enter
into an agreement with the host organization
over the use of money, which may be used for
activities, including but not limited to
finalizing the community dossier and staffing
the host organization and for infrastructure
design and planning, financial modeling,
development planning and coordination of
both real estate and public private partnerships,
and reimbursement of costs the Bloomington
Port Authority incurred. In selecting vendors
and exhibitors for Expo 2027, the host
organization shall prioritize outreach to,
collaboration with, and inclusion of businesses
that are majority owned by people of color,
women, and people with disabilities. The host
organization and Bloomington Port Authority
may be reimbursed for expenses 90 days prior
to encumbrance. This appropriation is
contingent on approval of the project by the
Bureau International des Expositions. If the
project is not approved by the Bureau
International des Expositions, the money shall
transfer to the Minnesota investment fund
under Minnesota Statutes, section 116J.8731.
Any unencumbered balance remaining at the
end of the first year does not cancel but is
available for the second year.

(ee) $5,000,000 the first year is for a grant to
the Neighborhood Development Center for
small business programs, including training,
lending, business services, and real estate
programming; small business incubator
development in the Twin Cities and outside
the seven-county metropolitan area; and
technical assistance activities for partners
outside the seven-county metropolitan area;
and for high-risk, character-based loan capital
for nonrecourse loans. This is a onetime
appropriation. Any unencumbered balance
remaining at the end of the first year does not
cancel but is available for the second year.

(ff) $5,000,000 the first year is for transfer to
the emerging developer fund account in the
special revenue fund. Of this amount, up to
five percent is for administration and
monitoring of the emerging developer fund
program under Minnesota Statutes, section
116J.9926, and the remainder is for a grant to
the Local Initiatives Support Corporation -
Twin Cities to serve as a partner organization
under the program. This is a onetime
appropriation.

(gg) $5,000,000 the first year is for the
Canadian border counties economic relief
program under article 5. Of this amount, up
to $1,000,000 is for Tribal economic
development and $2,100,000 is for a grant to
Lake of the Woods County for the forgivable
loan program for remote recreational
businesses. This is a onetime appropriation
and is available until June 30, 2026.

(hh) $1,000,000 each year is for a grant to
African Economic Development Solutions.
This is a onetime appropriation and is
available until June 30, 2026. Of this amount:

(1) $500,000 each year is for a loan fund that
must address pervasive economic inequities
by supporting business ventures of
entrepreneurs in the African immigrant
community; and

(2) $250,000 each year is for workforce
development and technical assistance,
including but not limited to business
development, entrepreneur training, business
technical assistance, loan packing, and
community development services.

(ii) $1,500,000 each year is for a grant to the
Latino Economic Development Center. This
is a onetime appropriation and is available
until June 30, 2025. Of this amount:

(1) $750,000 each year is to assist, support,
finance, and launch microentrepreneurs by
delivering training, workshops, and
one-on-one consultations to businesses; and

(2) $750,000 each year is to guide prospective
entrepreneurs in their start-up process by
introducing them to key business concepts,
including business start-up readiness. Grant
proceeds must be used to offer workshops on
a variety of topics throughout the year,
including finance, customer service,
food-handler training, and food-safety
certification. Grant proceeds may also be used
to provide lending to business startups.

(jj) $627,000 the first year is for a grant to
Community and Economic Development
Associates (CEDA) to provide funding for
economic development technical assistance
and economic development project grants to
small communities across rural Minnesota and
for CEDA to design, implement, market, and
administer specific types of basic community
and economic development programs tailored
to individual community needs. Technical
assistance grants shall be based on need and
given to communities that are otherwise
unable to afford these services. Of the amount
appropriated, up to $270,000 may be used for
economic development project implementation
in conjunction with the technical assistance
received. This is a onetime appropriation. Any
unencumbered balance remaining at the end
of the first year does not cancel but is available
the second year.

(kk) $2,000,000 the first year is for a grant to
WomenVenture to:

(1) support child care providers through
business training and shared services programs
and to create materials that could be used, free
of charge, for start-up, expansion, and
operation of child care businesses statewide,
with the goal of helping new and existing child
care businesses in underserved areas of the
state become profitable and sustainable; and

(2) support business expansion for women
food entrepreneurs throughout Minnesota's
food supply chain to help stabilize and
strengthen their business operations, create
distribution networks, offer technical
assistance and support to beginning women
food entrepreneurs, develop business plans,
develop a workforce, research expansion
strategies, and for other related activities.

Eligible uses of the money include but are not
limited to:

(i) leasehold improvements;

(ii) additions, alterations, remodeling, or
renovations to rented space;

(iii) inventory or supplies;

(iv) machinery or equipment purchases;

(v) working capital; and

(vi) debt refinancing.

Money distributed to entrepreneurs may be
loans, forgivable loans, and grants. Of this
amount, up to five percent may be used for
the WomenVenture's technical assistance and
administrative costs. This is a onetime
appropriation and is available until June 30,
2026.

By December 15, 2026, WomenVenture must
submit a report to the chairs and ranking
minority members of the legislative
committees with jurisdiction over agriculture
and employment and economic development.
The report must include a summary of the uses
of the appropriation, including the amount of
the appropriation used for administration. The
report must also provide a breakdown of the
amount of funding used for loans, forgivable
loans, and grants; information about the terms
of the loans issued; a discussion of how money
from repaid loans will be used; the number of
entrepreneurs assisted; and a breakdown of
how many entrepreneurs received assistance
in each county.

(ll) $2,000,000 the first year is for a grant to
African Career, Education, and Resource, Inc.,
for operational infrastructure and technical
assistance to small businesses. This
appropriation is available until June 30, 2025.

(mm) $5,000,000 the first year is for a grant
to the African Development Center to provide
loans to purchase commercial real estate and
to expand organizational infrastructure. This
appropriation is available until June 30, 2025.
Of this amount:

(1) $2,800,000 is for loans to purchase
commercial real estate targeted at African
immigrant small business owners;

(2) $364,000 is for loan loss reserves to
support loan volume growth and attract
additional capital;

(3) $836,000 is for increasing organizational
capacity;

(4) $300,000 is for the safe 2 eat project of
inclusive assistance with required restaurant
licensing examinations; and

(5) $700,000 is for a center for community
resources for language and technology
assistance for small businesses.

(nn) $7,000,000 the first year is for grants to
the Minnesota Initiative Foundations to
capitalize their revolving loan funds, which
address unmet financing needs of for-profit
business start-ups, expansions, and ownership
transitions; nonprofit organizations; and
developers of housing to support the
construction, rehabilitation, and conversion
of housing units. Of the amount appropriated:

(1) $1,000,000 is for a grant to the Southwest
Initiative Foundation;

(2) $1,000,000 is for a grant to the West
Central Initiative Foundation;

(3) $1,000,000 is for a grant to the Southern
Minnesota Initiative Foundation;

(4) $1,000,000 is for a grant to the Northwest
Minnesota Foundation;

(5) $2,000,000 is for a grant to the Initiative
Foundation of which $1,000,000 is for
redevelopment of the St. Cloud Youth and
Family Center; and

(6) $1,000,000 is for a grant to the Northland
Foundation.

(oo) $500,000 each year is for a grant to
Enterprise Minnesota, Inc., to reach and
deliver talent, leadership, employee retention,
continuous improvement, strategy, quality
management systems, revenue growth, and
manufacturing peer-to-peer advisory services
to small manufacturing companies employing
35 or fewer full-time equivalent employees.
This is a onetime appropriation. No later than
February 1, 2025, and February 1, 2026,
Enterprise Minnesota, Inc., must provide a
report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over economic development that
includes:

(1) the grants awarded during the past 12
months;

(2) the estimated financial impact of the grants
awarded to each company receiving services
under the program;

(3) the actual financial impact of grants
awarded during the past 24 months; and

(4) the total amount of federal funds leveraged
from the Manufacturing Extension Partnership
at the United States Department of Commerce.

(pp) $375,000 each year is for a grant to
PFund Foundation to provide grants to
LGBTQ+-owned small businesses and
entrepreneurs. Of this amount, up to five
percent may be used for PFund Foundation's
technical assistance and administrative costs.
This is a onetime appropriation and is
available until June 30, 2026. To the extent
practicable, money must be distributed by
PFund Foundation as follows:

(1) at least 33.3 percent to businesses owned
by members of racial minority communities;
and

(2) at least 33.3 percent to businesses outside
of the seven-county metropolitan area as
defined in Minnesota Statutes, section
473.121, subdivision 2.

(qq) $125,000 each year is for a grant to
Quorum to provide business support, training,
development, technical assistance, and related
activities for LGBTQ+-owned small
businesses that are recipients of a PFund
Foundation grant. Of this amount, up to five
percent may be used for Quorum's technical
assistance and administrative costs. This is a
onetime appropriation and is available until
June 30, 2026.

(rr) $5,000,000 the first year is for a grant to
the Metropolitan Economic Development
Association (MEDA) for statewide business
development and assistance services to
minority-owned businesses. This is a onetime
appropriation. Any unencumbered balance
remaining at the end of the first year does not
cancel but is available the second year. Of this
amount:

(1) $3,000,000 is for a revolving loan fund to
provide additional minority-owned businesses
with access to capital; and

(2) $2,000,000 is for operating support
activities related to business development and
assistance services for minority business
enterprises.

By February 1, 2025, MEDA shall report to
the commissioner and the chairs and ranking
minority members of the legislative
committees with jurisdiction over economic
development policy and finance on the loans
and operating support activities, including
outcomes and expenditures, supported by the
appropriation under this paragraph.

(ss) $2,500,000 each year is for a grant to a
Minnesota-based automotive component
manufacturer and distributor specializing in
electric vehicles and sensor technology that
manufactures all of their parts onshore to
expand their manufacturing. The grant
recipient under this paragraph shall submit
reports on the uses of the money appropriated,
the number of jobs created due to the
appropriation, wage information, and the city
and state in which the additional
manufacturing activity was located to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
economic development. An initial report shall
be submitted by December 15, 2023, and a
final report is due by December 15, 2025. This
is a onetime appropriation.

(tt)(1) $125,000 each year is for grants to the
Latino Chamber of Commerce Minnesota to
support the growth and expansion of small
businesses statewide. Funds may be used for
the cost of programming, outreach, staffing,
and supplies. This is a onetime appropriation.

(2) By January 15, 2026, the Latino Chamber
of Commerce Minnesota must submit a report
to the legislative committees with jurisdiction
over economic development that details the
use of grant funds and the grant's economic
impact.

(uu) $175,000 the first year is for a grant to
the city of South St. Paul to study options for
repurposing the 1927 American Legion
Memorial Library after the property is no
longer used as a library. This appropriation is
available until the project is completed or
abandoned, subject to Minnesota Statutes,
section 16A.642.

(vv) $250,000 the first year is for a grant to
LatinoLEAD for organizational
capacity-building.

(ww) $80,000 the first year is for a grant to
the Neighborhood Development Center for
small business competitive grants to software
companies working to improve employee
engagement and workplace culture and to
reduce turnover.

(xx)(1) $3,000,000 in the first year is for a
grant to the Center for Economic Inclusion for
strategic, data-informed investments in job
creation strategies that respond to the needs
of underserved populations statewide. This
may include forgivable loans, revenue-based
financing, and equity investments for
entrepreneurs with barriers to growth. Of this
amount, up to five percent may be used for
the center's technical assistance and
administrative costs. This appropriation is
available until June 30, 2025.

(2) By January 15, 2026, the Center for
Economic Inclusion shall submit a report on
the use of grant funds, including any loans
made, to the legislative committees with
jurisdiction over economic development.

(yy) $500,000 the first year is for a grant to
the Asian Economic Development Association
for asset building and financial empowerment
for entrepreneurs and small business owners,
small business development and technical
assistance, and cultural placemaking. This is
a onetime appropriation.

(zz) $500,000 each year is for a grant to
Isuroon to support primarily African
immigrant women with entrepreneurial
training to start, manage, and grow
self-sustaining microbusinesses, develop
incubator space for these businesses, and
provide support with financial and language
literacy, systems navigation to eliminate
capital access disparities, marketing, and other
technical assistance. This is a onetime
appropriation.

new text begin This section is effective retroactively to July 1, 2023.
new text end

Minnesota Statutes 2024, section 116J.8733, subdivision 4, is amended to read:

(a) deleted text begin The
commissioner shall establish a revolving loan fund to make loans to nonprofit corporations,
Tribal economic development entities, and community development financial institutions
for the purpose of increasing nonprofit corporation, Tribal economic development entity,
and community development financial institution capital and lending activities with
Minnesota small businesses.deleted text end new text begin A Minnesota expanding opportunity account is created in the
special revenue fund in the state treasury. Money in the account is appropriated to the
commissioner for revolving loans to nonprofit corporations for the purpose of increasing
nonprofit corporation capital and lending activities with Minnesota small businesses.
new text end

(b) Nonprofit corporationsdeleted text begin , Tribal economic development entities, and community
development financial institutionsdeleted text end that receive loans from the commissioner under the
program must establish appropriate accounting practices for the purpose of tracking eligible
loans.

new text begin (c) All loan repayments must be paid into the Minnesota expanding opportunity account
created in this section to fund additional loans.
new text end

Laws 2023, chapter 53, article 20, section 2, subdivision 2, as amended by Laws
2024, chapter 120, article 1, section 6, is amended to read:

new text begin APPROPRIATIONS
new text end

new text begin Available for the Year
new text end

new text begin Ending June 30
new text end

new text begin 2026
new text end

new text begin 2027
new text end

195,061,000

139,104,000

Appropriations by Fund
General	193,011,000	137,054,000
Remediation	700,000	700,000
Workforce Development	1,350,000	1,350,000

(1) $1,500,000 is for innovation grants to
eligible Minnesota entrepreneurs or start-up
businesses to assist with their operating needs;

(2) $500,000 is for administration of Launch
Minnesota; and

(3) $500,000 is for grantee activities at Launch
Minnesota.

(ii) support technology transfer and
commercialization from the University of
Minnesota, Mayo Clinic, and federal
laboratories;

(iii) partner with large businesses;

(iv) conduct statewide outreach, education,
and training on federal rules, regulations, and
requirements;

(v) assist with scientific and technical writing;

(vi) help manage federal grants and contracts;
and

(vii) support cost accounting and sole-source
procurement opportunities.

(e) $10,000,000 the first year is for the
Minnesota Expanding Opportunity Fund
Program under Minnesota Statutes, section
116J.8733. This is a onetime appropriation
and is available until June 30, 2025.