2025 LEGISLATIVE OUTCOMES
The Jobs bill funds many key economic and workforce development programs, including support for small business technical assistance, employee training programs, increased child care capacity, brownfield redevelopment, and funds to help communities attract and retain employers. These programs have a significant impact on business and economic development in Minnesota are critical to help build a thriving economy throughout the state.
However, workforce and economic development efforts also faced significant budget challenges during the 2025 session. Leadership set targets to cut $30 million in spending for FY26-27 and cut $40 million for FY28-29. While the GMNP pushed for additional investments in key areas, we spent many hours fighting against cuts to critical economic development programs.
GMNP Workforce & Economic Development Priorities
- Advocate for ongoing funding for the Drive for Five workforce training program and ensure the program is effective in training and placing workers in high-demand occupations.
- Monitor the Job Training Incentive Program (JTIP) and the Minnesota Job Skills Partnership Programs to ensure appropriate funding and resource deployment.
- Monitor funding for key economic development programs including the Minnesota Investment Fund, Job Creation Fund, Minnesota Forward Fund, redevelopment funds, small business programs, Competitiveness Fund, and the Climate Innovation Finance Authority.
Key Funding Allocations - Economic Development
| Program | FY26-27 | FY28-29 |
|---|---|---|
| BDPI | $4.574M (base) | $4.574M (base) |
| Small Business Assistance Partnerships Program | $5.45M (base) | $3.45M (-$2M cut) |
| Child Care Economic Development Grants | $3M (base) | $3M (base) |
| Office of Child Care Community Partnerships | $1M (base) | $1M (base) |
| Minnesota Investment Fund (MIF) | $24.74M (base) | $24.74M (base) |
| Job Creation Fund (JCF) | $9.9M (-$6.1M cut) | $11.2M (-$4.8M cut) |
| Redevelopment Grants | $2.492M (-$2M cut) | $11.2M (-$4.8M cut) |
| Cleanup Funds | $3.544M (base) + $1.4M remediation fund | $2.044M (-$1.5M cut) |
Key Funding Allocations - Workforce Development
| Program | FY26-27 | FY28-29 |
|---|---|---|
| Drive for Five | $12M | Not in base |
| Pathways to Prosperity | $21M (adds $6.858M) | $14.896M (base) |
| Job Training Incentive Program (JTIP) | $2.7M | $2.7M |
| Minnesota Job Skills Partnership | $8.39M | $8.39M |
| Comprehensive Review of Department Grant Processes | $150K | - |
| Task Force on Workforce Development Reform | $150K | - |