Bill
HF 4999
HF 4999 ends PROMISE grant funding by July 1, 2026, reallocates its resources to other economic development programs and onetime grants with reporting and match requirements.
Purpose and intent
- This bill terminates the prior appropriation for the PROMISE grant program and makes related adjustments to economic development funding carried in Laws 2025, First Special Session (chapter 6, article 1).
- The overarching aim is to remove ongoing PROMISE grant funding and reallocate, adjust, or repurpose those resources within the state’s economic development portfolio.
Key provisions and changes
- Section 1: Legislative amendments to funding tables
- Revisions to the “Appropriations by Fund” for the Business and Community Development, Workforce Development, and related programs.
- Specific adjustments include:
- General Fund and other designated funds amounts updated in the published appropriation subsection.
- Several named programs retain or adjust funding levels (examples include Minnesota's public infrastructure grant program under Minn. Stat. 116J.431; Energy Transition Office administration; SBDC-related activities; small business development centers; and contaminated site cleanup and redevelopment programs).
- Fixed annual appropriations for various programs (e.g., host community economic development; child care provider grants; Minnesota Initiative Foundations; Minnesota Job Creation Fund; Minnesota Investment Fund; redevelopment programs; Upper Minnesota Film Office; CanNavigate; MNSBIR, Inc.; Neighborhood Development Center; Community and Economic Development Associates (CEDA); Coalition of Asian American Leaders; WomenVenture; Latino Economic Development Center; Isuroon; and other targeted microenterprise and rural development initiatives).
- Notable PROMISE-related line items:
- PROMISE Grant Program: A major, targeted set-aside previously within the PROMISE program is explicitly continued as a separate, dedicated appropriation (line item called PROMISE grant program, described with a first-year amount and distribution details). This bill includes a separate provision to terminate funding for the PROMISE program altogether in Section 2 (see below). In the text of Section 1, there is a substantial PROMISE-related allocation described (as part of a broader package) to be used for several federal and state-aligned activities, including Equal distribution to Minnesota Initiative Foundations and Neighborhood Development Center, and a dedicated onetime grant to specific entities. These PROMISE-related allocations are described as available through June 30, 2029 in some cases, with base and matching considerations noted.
- Section 1, subparts (including items labeled with letters a–ee)
- (a) through (d), (e)–(t): Detailed annual funding allocations for a wide array of workforce, business development, and redevelopment programs, including bases and expiration dates (some funds have two-year grant periods, match requirements for nonstate funds, and reporting requirements for outcomes).
- (j) Highlights: A significant investment mechanism for child care as an economic development driver, including a 50% nonstate match and reporting on outcomes within one year of grant funding.
- (k) Office of Child Care Community Partnerships funding and related admin and research components.
- (l) Minnesota Initiative Foundations funding to support rural planning, private sector engagement, local training, and quality child care improvements.
- (m) Minnesota Job Creation Fund; (n) Minnesota Investment Fund; (o) Redevelopment program; (p) Upper Minnesota Film Office; (q) Minnesota Job Skills Partnership program; (r) Jobs training grants under 116L.41; (s) Labor market information publication; (t) CanNavigate; (u) MNSBIR, Inc. (onetime grant to advance R&D and federal funding through a Minnesota-focused resource for startups and small businesses).
- (v) PROMISE-related allocations: It describes $5,523,000 in the first year for PROMISE-related activities held by MNSBIR and associated distributions to neighborhood development, greater Minnesota, and North Minneapolis areas, with suballocations and reporting requirements.
- (w) Community partners: Several onetime and annual grants to regional economic development partners, including CEDA and the Neighborhood Development Center, with explicit one-time status and carryover of unencumbered funds to the second year.
- (aa) Through (dd): Additional targeted grants to minority-focused organizations (African Development Center, Coalition of Asian American Leaders, WomenVenture, Latino Economic Development Center, Isuroon) for capacity building, microenterprise support, and related services. Many of these are one-time appropriations with deadlines to report outcomes and usage specifics, and with time-limited availability (through 2027 or 2028 in several cases).
- Section 2: Funding termination
- Subsection explicitly terminates funding for the PROMISE grant program.
- Any remaining PROMISE funds would be canceled back to the General Fund.
- Effective date for Section 2 is July 1, 2026.
Effective date
- Section 1 (funding provisions) effectiveness appears to align with the legislative session’s July 1, 2026 date, while Section 2 (PROMISE termination) is effective July 1, 2026.
Affected entities and impacts
- State government offices and departments administering economic development, workforce development, child care, and redevelopment programs.
- PROMISE grant program recipients and the PROMISE funding stream specifically.
- Regional and rural economic development partners (Neighborhood Development Center, Minnesota Initiative Foundations, CEDA, African Development Center, Coalition of Asian American Leaders, WomenVenture, Latino Economic Development Center, Isuroon, Enterprise Minnesota, and others listed in the bill).
- Communities outside the seven-county Minneapolis-St. Paul area are specifically targeted for some grants, with matching requirements and reporting duties.
- Recipients must meet reporting requirements on program outcomes, job creation, provider numbers, and leveraging of federal funds where applicable.
Procedural and timeline aspects
- Process: The bill was introduced (HF No. 4999), referred to the Committee on Workforce, Labor, and Economic Development Finance and Policy, and scheduled for consideration.
- Termination timeline: PROMISE grant funding terminated as of July 1, 2026. Any remaining PROMISE funds would be canceled back to the General Fund.
- Funding periods: Many line items are multi-year grants (e.g., two-year grant cycles, available through 2029), with annual appropriations and base adjustments for subsequent years. Several programs have sunset dates (June 30, 2029) or earlier, and some onetime appropriations with reporting deadlines (e.g., December 15, 2028 for WomenVenture reporting).
Bottom line
- HF 4999 seeks to terminate the PROMISE grant program funding while preserving and adjusting a broad array of economic development, workforce, and small business support programs. It introduces substantial onetime and multi-year appropriations to various nonprofit and community organizations, with explicit reporting requirements and, in many cases, matching funds or local contributions. The PROMISE program would ended as of mid-2026, with any remaining funds canceled back to the General Fund.
Compiled from official sources — confirm details with the bill’s official record.
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