Supplemental workforce and economic development bill passed by House

A conference committee is likely forthcoming for the workforce and economic development supplemental budget bill.

By a 74-52 vote Friday, the House passed HF5205/SF5289*,  as amended to include the House language and sent it back to the Senate for concurrence. A conference committee is expected to work out the differences between the two bills.

“This bill accomplishes a strong balance of investment in both rural and metro Minnesota communities. It touches all corners of Minnesota and even includes projects and priorities of my colleagues across the aisle. I’m proud that we were able to build a strong, responsible supplemental budget bill. It’s an excellent follow up to the historic investments we made last year,” Rep. Hodan Hassan (DFL-Mpls) said in a statement. She sponsors the bill with Senate President Bobby Joe Champion (DFL-Mpls).

The supplemental budget bill would make appropriations in three areas:

• $16.75 million for employment and training programs;
• $3.43 million to Explore Minnesota Tourism; and
• $2.97 million to the Department of Employment and Economic Development, for grants funding business and community development organizations.

Most appropriations are one-time funding in fiscal year 2025; DEED funds and Explore Minnesota Tourism funds would come from the General Fund, while employment and training program funding would come from the Workforce Development Fund.

Rep. Hodan Hassan

[MORE: View the spreadsheet]

The bill would expand the definition of “dislocated worker” for the purposes of the state dislocated worker program to include: certain spouses of active duty United States armed forces members; injured and ill individuals without workers’ compensation cases needing support to re-enter or remain in the workforce; and adults with low income, adults receiving public assistance, and adults deficient in basic skills.

The only Republican-offered amendment came from Rep. Isaac Schultz (R-Elmdale Township). Voted down, it have ensured the definition of a dislocated worker would not include an individual “who is an undocumented immigrant.”

Workforce programs

The $16.75 million for workforce training programs would fund more than 40 organizations and municipalities. Some of the larger appropriations include:

• $2 million to the PFund Foundation for grants supporting LGBTQ individuals and their families relocating to Minnesota;
• $2 million to Brooklyn Park for a biotech innovation district;
• $1 million to Lakeview Methodist Health Care to expand child care program capacity;
• $1 million to WomenVenture for supporting child care providers;
• $1 million to the Minnesota Black Chamber of Commerce;
• $1 million to African Immigrants Community Services for workforce development for new Americans;
• $750,000 to the Riverside Plaza Tenant Association for training in health care, technology, and construction or skilled trades industries; and
• $700,000 to the Shakopee area workforce development scholarship pilot program.

Explore Minnesota Tourism

The two largest and most high-profile items to be funded through Explore Minnesota Tourism, would be $1 million in assistance for both the 2026 World Junior Hockey Championships and the 2026 Special Olympics USA Games. Each event is expected to bring hundreds of thousands of visitors to the metro area and boost hotel, restaurant and other hospitality businesses.

Other tourism office programs that would be funded are:

• $725,000 for the Explore Minnesota Film Office;
• $400,000 for Ka Joog for Somali community and cultural festivals and events; and
• $300,000 for a film production jobs program at the Explore Minnesota Film Office.

“The passage of this bill means that Minnesota will get a new film office to fuel our economy in many sectors including the creative, hospitality, and building trades,” Rep. Liz Lee (DFL-St. Paul) said in a statement. “In the last decade, the $23.7 million investment that our state made in the film rebate program generated nearly a 5-fold return of more than $108.7 million of in-state spending. A dedicated state agency will be able to do even more when it positions us more competitively against other states. Minnesota now has the potential to attract productions, generate jobs, and ultimately contribute to the cultural and economic vibrancy of our state.” 

DEED grants for business, community development

Hassan said the Department of Employment and Economic Development grants would aid both businesses and workers. She said that impact would be felt from the Twin Cities, where communities are still trying to recover from pandemic shutdowns and civil unrest, all the way to the Arrowhead.

Items funded in the bill include:

• $2.5 million for Launch MN to, per its website, “accelerate the growth of startups and amplify Minnesota as a national leader in innovation”;
• $1 million for the Entrepreneur Fund;
• $800,000 for the New American Development Center;
• $500,000 million for the Coalition of Asian American Leaders;
• $500,000 for the Arrowhead Economic Opportunity Agency;
• $500,000 for the Asian Economic Development Association; and
• $497,000 for Propel Nonprofits.