HF 4999

04/08/26   REVISOR  SS/HL  26-08411
This Document can be made available
in alternative formats upon request  State of Minnesota
  HOUSE OF REPRESENTATIVES
  NINETY-FOURTH SESSION
  H. F. No.  4999
04/16/2026     Authored by Baker
  The bill was read for the first time and referred to the Committee on Workforce, Labor, and Economic Development Finance and Policy
1.1A bill for an act
1.2relating to economic development; terminating prior appropriations to the
1.3PROMISE grant program; amending Laws 2025, First Special Session chapter 6,
1.4article 1, section 2, subdivision 2.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6Section 1. Laws 2025, First Special Session chapter 6, article 1, section 2, subdivision 2,
1.7is amended to read:
1.8Subd. 2. Business and Community Development  50,693,000  44,345,000
1.9Appropriations by Fund
1.10General  48,393,000  42,045,000
1.11Remediation  700,000  700,000
1.12Workforce
1.13Development  1,600,000  1,600,000
1.14(a) $2,287,000 each year is for the greater
1.15Minnesota business development public
1.16infrastructure grant program under Minnesota
1.17Statutes, section 116J.431. This appropriation
1.18is available until June 30, 2029.
1.19(b) $350,000 each year is for the
1.20administration of the Energy Transition Office
1.21under Minnesota Statutes, section 116J.5491.
1.22(c) $500,000 each year is for grants to small
1.23business development centers under Minnesota
Section 1.  1
04/08/26   REVISOR   SS/HL   26-08411
2.1  Statutes, section 116J.68. Money made
2.2  available under this paragraph may be used to
2.3  match funds under the federal Small Business
2.4  Development Center (SBDC) program under
2.5  United States Code, title 15, section 648, to
2.6  provide consulting and technical services or
2.7  to build additional SBDC network capacity to
2.8  serve entrepreneurs and small businesses.
2.9  (d) $2,725,000 each year is for the small
2.10 business assistance partnerships program
2.11 under Minnesota Statutes, section 116J.682.
2.12 All grant awards shall be for two consecutive
2.13 years. Grants shall be awarded in the first year.
2.14 The department may use up to five percent of
2.15 the appropriation for administrative purposes.
2.16 The base for this appropriation is $1,725,000
2.17 in fiscal year 2028 and each year thereafter.
2.18 (e) $1,772,000 each year is for contaminated
2.19 site cleanup and development grants under
2.20 Minnesota Statutes, sections 116J.551 to
2.21 116J.558. This appropriation is available until
2.22 June 30, 2029. The base for this appropriation
2.23 is $1,022,000 in fiscal year 2028 and each year
2.24 thereafter.
2.25 (f) $700,000 each year is from the remediation
2.26 fund for contaminated site cleanup and
2.27 development grants under Minnesota Statutes,
2.28 sections 116J.551 to 116J.558. This
2.29 appropriation is available until June 30, 2029.
2.30 (g) $139,000 each year is for the Center for
2.31 Rural Policy and Development.
2.32 (h) $25,000 each year is for the administration
2.33 of state aid for the Destination Medical Center
Section 1.  2
04/08/26   REVISOR   SS/HL   26-08411
3.1  Corporation under Minnesota Statutes,
3.2  sections 469.40 to 469.47.
3.3  (i) $710,000 the first year and $711,000 the
3.4  second year are for the host community
3.5  economic development program established
3.6  in Minnesota Statutes, section 116J.548. The
3.7  base for this appropriation is $875,000 in fiscal
3.8  year 2028 and each year thereafter.
3.9  (j)(1) $1,500,000 each year is for grants to
3.10 local communities to increase the number of
3.11 quality child care providers to support
3.12 economic development. Fifty percent of grant
3.13 funds must go to communities located outside
3.14 the seven-county metropolitan area as defined
3.15 in Minnesota Statutes, section 473.121,
3.16 subdivision 2.
3.17 (2) Grant recipients must obtain a 50 percent
3.18 nonstate match to grant funds in either cash
3.19 or in-kind contribution, unless the
3.20 commissioner waives the requirement. Grant
3.21 funds available under this paragraph must be
3.22 used to implement projects to reduce the child
3.23 care shortage in the state, including but not
3.24 limited to funding for child care business
3.25 start-ups or expansion, training, facility
3.26 modifications, direct subsidies or incentives
3.27 to retain employees, or improvements required
3.28 for licensing, and assistance with licensing
3.29 and other regulatory requirements. In awarding
3.30 grants, the commissioner must give priority
3.31 to communities that have demonstrated a
3.32 shortage of child care providers.
3.33 (3) Within one year of receiving grant funds,
3.34 grant recipients must report to the
3.35 commissioner on the outcomes of the grant
Section 1.  3
04/08/26   REVISOR   SS/HL   26-08411
4.1  program, including but not limited to the
4.2  number of new providers, the number of
4.3  additional child care provider jobs created, the
4.4  number of additional child care slots, and the
4.5  amount of cash and in-kind local funds
4.6  invested. Within one month of all grant
4.7  recipients reporting on program outcomes, the
4.8  commissioner must report the grant recipients'
4.9  outcomes to the chairs and ranking minority
4.10 members of the legislative committees with
4.11 jurisdiction over early learning and child care
4.12 and economic development.
4.13 (k) $500,000 each year is for the Office of
4.14 Child Care Community Partnerships. Of this
4.15 amount:
4.16 (1) $450,000 each year is for administration
4.17 of the Office of Child Care Community
4.18 Partnerships; and
4.19 (2) $50,000 each year is for the Labor Market
4.20 Information Office to conduct research and
4.21 analysis related to the child care industry.
4.22 (l) $1,000,000 each year is for grants in equal
4.23 amounts to each of the Minnesota Initiative
4.24 Foundations. This appropriation is available
4.25 until June 30, 2029. The Minnesota Initiative
4.26 Foundations must use grant money under this
4.27 paragraph to:
4.28 (1) facilitate planning processes for rural
4.29 communities resulting in a community solution
4.30 action plan that guides decision making to
4.31 sustain and increase the supply of quality child
4.32 care in the region to support economic
4.33 development;
Section 1.  4
04/08/26   REVISOR   SS/HL   26-08411
5.1  (2) engage the private sector to invest local
5.2  resources to support the community solution
5.3  action plan and ensure quality child care is a
5.4  vital component of additional regional
5.5  economic development planning processes;
5.6  (3) provide locally based training and technical
5.7  assistance to rural child care business owners
5.8  individually or through a learning cohort.
5.9  Access to financial and business development
5.10 assistance must prepare child care businesses
5.11 for quality engagement and improvement by
5.12 stabilizing operations, leveraging funding from
5.13 other sources, and fostering business acumen
5.14 that allows child care businesses to plan for
5.15 and afford the cost of providing quality child
5.16 care; and
5.17 (4) recruit child care programs to participate
5.18 in quality rating and improvement
5.19 measurement programs. The Minnesota
5.20 Initiative Foundations must work with local
5.21 partners to provide low-cost training,
5.22 professional development opportunities, and
5.23 continuing education curricula. The Minnesota
5.24 Initiative Foundations must fund through local
5.25 partners an enhanced level of coaching to rural
5.26 child care providers to obtain a quality rating
5.27 through measurement programs.
5.28 (m) $4,954,000 the first year and $4,955,000
5.29 the second year are for the Minnesota job
5.30 creation fund under Minnesota Statutes,
5.31 section 116J.8748. Of this amount, the
5.32 commissioner of employment and economic
5.33 development may use up to three percent for
5.34 administrative expenses. This appropriation
5.35 is available until June 30, 2029. The base for
Section 1.  5
04/08/26   REVISOR   SS/HL   26-08411
6.1  this appropriation is $5,600,000 in fiscal year
6.2  2028 and each year thereafter.
6.3  (n) $12,370,000 each year is for the Minnesota
6.4  investment fund under Minnesota Statutes,
6.5  section 116J.8731. Of this amount, the
6.6  commissioner of employment and economic
6.7  development may use up to three percent for
6.8  administration and monitoring of the program.
6.9  This appropriation is available until June 30,
6.10 2029. Notwithstanding Minnesota Statutes,
6.11 section 116J.8731, money appropriated to the
6.12 commissioner for the Minnesota investment
6.13 fund may be used for the redevelopment
6.14 program under Minnesota Statutes, sections
6.15 116J.575 and 116J.5761, at the discretion of
6.16 the commissioner. Grants under this paragraph
6.17 are not subject to the grant amount limitation
6.18 under Minnesota Statutes, section 116J.8731.
6.19 (o) $1,246,000 each year is for the
6.20 redevelopment program under Minnesota
6.21 Statutes, sections 116J.575 and 116J.5761.
6.22 (p) $12,000 each year is for a grant to the
6.23 Upper Minnesota Film Office.
6.24 (q) $4,195,000 each year is for the Minnesota
6.25 job skills partnership program under
6.26 Minnesota Statutes, sections 116L.01 to
6.27 116L.17. If the appropriation for either year
6.28 is insufficient, the appropriation for the other
6.29 year is available. This appropriation is
6.30 available until June 30, 2029.
6.31 (r) $1,350,000 each year from the workforce
6.32 development fund is for jobs training grants
6.33 under Minnesota Statutes, section 116L.41.
Section 1.  6
04/08/26   REVISOR   SS/HL   26-08411
7.1  (s) $250,000 each year is for the publication,
7.2  dissemination, and use of labor market
7.3  information under Minnesota Statutes, section
7.4  116J.401.
7.5  (t) $750,000 each year is for the CanNavigate
7.6  program established under Minnesota Statutes,
7.7  section 116J.6595. Of this amount, up to four
7.8  percent may be used for administrative
7.9  purposes. Any unencumbered balances
7.10 remaining in the first year do not cancel but
7.11 are available for the second year.
7.12 (u) $500,000 each year is for a grant to
7.13 MNSBIR, Inc., for support of the small
7.14 business research and development goals
7.15 provided in Minnesota Statutes, section 3.222.
7.16 This appropriation is onetime and is available
7.17 until June 30, 2027.
7.18 The purpose of the grant is to support moving
7.19 scientific excellence and technological
7.20 innovation from the lab to the market for
7.21 startups and small businesses by securing
7.22 federal research and development funding to
7.23 build a strong innovation economy and
7.24 stimulate the creation of novel products,
7.25 services, and solutions; strengthening the role
7.26 of startups and small businesses in meeting
7.27 federal research and development needs;
7.28 increasing the commercial application of
7.29 federally supported research results; and
7.30 developing and increasing the Minnesota
7.31 workforce, especially by fostering and
7.32 encouraging participation by small businesses
7.33 owned by people who are Black, Indigenous,
7.34 People of Color, and women.
Section 1.  7
04/08/26   REVISOR   SS/HL   26-08411
8.1  MNSBIR, Inc. shall use grant money to
8.2  become the federal research and development
8.3  dedicated resource for Minnesota small
8.4  businesses to support research and
8.5  commercialization of novel ideas, concepts,
8.6  and projects to develop cutting-edge products
8.7  and services for worldwide economic impact.
8.8  Grant money shall be used to:
8.9  (1) assist startups and small businesses in
8.10 securing federal research and development
8.11 funding including the small business
8.12 innovation research and small business
8.13 technology transfer programs;
8.14 (2) support technology transfer and
8.15 commercialization from the University of
8.16 Minnesota, Mayo Clinic, and federal
8.17 laboratories;
8.18 (3) collaborate with corporate venture groups
8.19 and large businesses nationally;
8.20 (4) conduct statewide outreach, education, and
8.21 training on federal rules, regulations, and
8.22 requirements;
8.23 (5) assist with scientific and technical writing;
8.24 (6) help manage federal grants and contracts;
8.25 and
8.26 (7) support cost accounting and federal
8.27 sole-source procurement opportunities.
8.28 (v) $5,523,000 the first year is for the
8.29 PROMISE grant program. This appropriation
8.30 is available until June 30, 2029. Of this
8.31 amount:
8.32 (1) $1,105,000 the first year is for grants in
8.33 equal amounts to each of the Minnesota
Section 1.  8
04/08/26   REVISOR   SS/HL   26-08411
9.1  Initiative Foundations to serve businesses in
9.2  greater Minnesota. Of this amount, $88,000
9.3  is for grants to businesses with less than
9.4  $100,000 in revenue the prior year; and
9.5  (2) $4,418,000 the first year is for grants to
9.6  the Neighborhood Development Center. Of
9.7  this amount, the following amounts are
9.8  designated for the following areas:
9.9  (i) $1,105,000 the first year is for North
9.10 Minneapolis' West Broadway, Camden, and
9.11 other Northside neighborhoods. Of this
9.12 amount, $88,000 is for grants to businesses
9.13 with less than $100,000 in revenue in the prior
9.14 year;
9.15 (ii) $1,105,000 the first year is for South
9.16 Minneapolis' Lake Street, 38th and Chicago,
9.17 Franklin, Nicollet, and Riverside corridors.
9.18 Of this amount, $88,000 is for grants to
9.19 businesses with less than $100,000 in revenue
9.20 in the prior year;
9.21 (iii) $1,104,000 the first year is for St. Paul's
9.22 University Avenue, Midway, Eastside, or other
9.23 St. Paul neighborhoods. Of this amount,
9.24 $88,000 is for grants to businesses with less
9.25 than $100,000 in revenue in the prior year;
9.26 and
9.27 (iv) $1,104,000 the first year is for grants to
9.28 businesses in the counties of Anoka, Carver,
9.29 Dakota, Hennepin, Ramsey, Scott, and
9.30 Washington, excluding the cities of
9.31 Minneapolis and St. Paul.
9.32 The base for this appropriation is $1,402,000
9.33 in fiscal year 2028 and each year thereafter.
9.34 Of this amount, $281,000 each year is for the
Section 1.  9
 04/08/26   REVISOR    SS/HL   26-08411
10.1  purposes of clause (1); $1,121,000 each year
10.2  is for the purposes of clause (2); $281,000
10.3  each year is for the purposes of clause (2),
10.4  item (i); $280,000 each year is for the purposes
10.5  of clause (2), item (ii); $280,000 each year is
10.6  for the purposes of clause (2), item (iii); and
10.7  $280,000 each year is for the purposes of
10.8  clause (2), item (iv).
10.9  (w) (v) $500,000 each year is for a grant to
10.10 the Neighborhood Development Center (NDC)
10.11 to support small business programs, including
10.12 training, lending, business services, and real
10.13 estate initiatives. Money may be used to assist
10.14 organizations outside of the seven-county
10.15 metropolitan area with technical assistance
10.16 and grants to help implement elements of
10.17 NDC's small business support model; provide
10.18 one-on-one technical assistance for
10.19 entrepreneurs; and support the operations and
10.20 marketing of a cybersecurity center. This is a
10.21 onetime appropriation. Any unencumbered
10.22 balance remaining at the end of the first year
10.23 does not cancel and is available for use in the
10.24 second year.
10.25 (x) (w) $627,000 the first year is for a grant
10.26 to Community and Economic Development
10.27 Associates (CEDA) to provide funding for
10.28 economic development technical assistance
10.29 and economic development project grants to
10.30 small communities across rural Minnesota and
10.31 for CEDA to design, implement, market, and
10.32 administer specific types of basic community
10.33 and economic development programs tailored
10.34 to individual community needs. Technical
10.35 assistance grants shall be based on need and
 Section 1.  10
 04/08/26   REVISOR   SS/HL   26-08411
11.1  given to communities that are otherwise
11.2  unable to afford these services. Of the amount
11.3  appropriated, up to $270,000 may be used for
11.4  economic development project implementation
11.5  in conjunction with the technical assistance
11.6  received. This is a onetime appropriation. Any
11.7  unencumbered balance remaining at the end
11.8  of the first year does not cancel but is available
11.9  the second year.
11.10 (y) (x) $200,000 the first year is for a grant to
11.11 the African Development Center for
11.12 capacity-building initiatives to support small
11.13 business growth and sustainability. This is a
11.14 onetime appropriation and is available until
11.15 June 30, 2027.
11.16 (z) (y) $250,000 each year is for a grant to
11.17 Enterprise Minnesota, Inc. to directly invest
11.18 in Minnesota manufacturers under the Made
11.19 in Minnesota program under Minnesota
11.20 Statutes, section 116O.115. This is a onetime
11.21 appropriation.
11.22 (aa) (z) $250,000 each year is for a grant to
11.23 Enterprise Minnesota, Inc., to reach and
11.24 deliver talent, leadership, employee retention,
11.25 continuous improvement, strategy, quality
11.26 management systems, revenue growth, and
11.27 manufacturing peer-to-peer advisory services
11.28 to small manufacturing companies employing
11.29 250 or fewer full-time equivalent employees
11.30 and for operations of Enterprise Minnesota.
11.31 This is a onetime appropriation. No later than
11.32 February 1, 2026, and February 1, 2027,
11.33 Enterprise Minnesota, Inc. must provide a
11.34 report to the chairs and ranking minority
11.35 members of the legislative committees with
 Section 1.  11
 04/08/26   REVISOR   SS/HL   26-08411
12.1  jurisdiction over economic development that
12.2  includes:
12.3  (1) the amount of money awarded during the
12.4  past 12 months;
12.5  (2) the estimated financial impact of the
12.6  money awarded to each company receiving
12.7  service under the program;
12.8  (3) the actual financial impact of the money
12.9  awarded during the past 24 months; and
12.10 (4) the total amount of federal money
12.11 leveraged from the Manufacturing Extension
12.12 Partnership at the United States Department
12.13 of Commerce.
12.14 (bb) (aa) $250,000 each year is for a grant to
12.15 the Coalition of Asian American Leaders to
12.16 support outreach, training, technical assistance,
12.17 peer network development, and direct financial
12.18 assistance targeted to Asian Minnesotan
12.19 women entrepreneurs and Asian-owned
12.20 businesses. This is a onetime appropriation
12.21 and is available until June 30, 2028.
12.22 (cc) (bb) $250,000 each year from the
12.23 workforce development fund is for a grant to
12.24 WomenVenture to support child care providers
12.25 through business training and shared services
12.26 programs and to create materials that may be
12.27 used, at no cost to child care providers, for
12.28 start-up, expansion, and operation of child care
12.29 businesses statewide, with the goal of helping
12.30 new and existing child care businesses in
12.31 underserved areas of the state become
12.32 profitable and sustainable.
12.33 Of this amount, up to five percent may be used
12.34 for WomenVenture's technical assistance and
 Section 1.  12
 04/08/26   REVISOR   SS/HL   26-08411
13.1  administrative costs. This is a onetime
13.2  appropriation and is available until June 30,
13.3  2028.
13.4  By December 15, 2028, WomenVenture must
13.5  submit a report to the chairs and ranking
13.6  minority members of the legislative
13.7  committees with jurisdiction over agriculture
13.8  and employment and economic development.
13.9  The report must include a summary of the uses
13.10 of the appropriation, including the amount of
13.11 the appropriation used for administration. The
13.12 report must also provide a breakdown of the
13.13 amount of funding used for loans, forgivable
13.14 loans, and grants; information about the terms
13.15 of the loans issued; a discussion of how money
13.16 from repaid loans will be used; the number of
13.17 entrepreneurs assisted; and a breakdown of
13.18 how many entrepreneurs received assistance
13.19 in each county.
13.20 (dd) (cc) $250,000 each year is for a grant to
13.21 the Latino Economic Development Center to
13.22 assist, support, finance, and launch
13.23 microentrepreneurs by delivering training,
13.24 workshops, and one-on-one consultations to
13.25 businesses; and to guide prospective
13.26 entrepreneurs in their start-up process by
13.27 introducing them to key business concepts,
13.28 including business start-up readiness. Grant
13.29 proceeds must be used to offer workshops on
13.30 a variety of topics throughout the year,
13.31 including finance, customer service,
13.32 food-handler training, and food-safety
13.33 certification. Grant proceeds may also be used
13.34 to provide lending to business startups. This
 Section 1.  13
 04/08/26   REVISOR  SS/HL  26-08411
14.1  is a onetime appropriation and is available
14.2  until June 30, 2027.
14.3  (ee) (dd) $150,000 each year is for a grant to
14.4  Isuroon for the following:
14.5  (1) providing loans to microbusinesses to
14.6  promote entrepreneurship and economic
14.7  growth in underserved communities;
14.8  (2) awarding grants to microbusinesses to
14.9  support start-up costs, capacity building, and
14.10 business sustainability;
14.11 (3) delivering technical assistance and training
14.12 to entrepreneurs, including support for
14.13 business operations, financial management,
14.14 and development strategies; and
14.15 (4) establishing and operating a business
14.16 incubator program to support microbusinesses
14.17 with shared resources, mentorship, and access
14.18 to professional networks.
14.19 This is a onetime appropriation and is
14.20 available until June 30, 2027.
14.21     EFFECTIVE DATE. This section is effective July 1, 2026.
14.22   Sec. 2. FUNDING TERMINATION.
14.23     Funding for the PROMISE grant program is terminated. Any remaining money is canceled
14.24 back to the general fund.
14.25     EFFECTIVE DATE. This section is effective July 1, 2026.
 Sec. 2.  14