Jobs and Economic Development

DFLers on the Jobs Committee in 2026 continued their focus on making investments across the entire state, supporting programs and organizations in our urban, suburban, exurban, and rural communities. These investments will have far-reaching, immediate, and long-term impacts, benefiting workers and communities in every corner of Minnesota.

Unfortunately, due to unreasonable demands by Republicans to re-debate important laws, including Paid Leave, Earned Sick and Safe Time, the Senate did not take up a comprehensive Jobs-Labor bill at the end of session.

Despite that, Senate DFLers managed to pass important legislation that forced public debate highlighting many of the multiple ways the Trump administration has damaged the state’s economic health and endangered our workers.

PASSED 

While unreasonable Republican opposition prevented a Jobs-Labor bill from passing this year, some legislation important to Minnesota workers and our economy did pass both houses of the Legislature.

Extension of Unemployment Insurance benefits for some Iron Range workers: Bipartisan legislation extended benefits by 26 weeks for miners affected by layoffs at the Cleveland-Cliffs mine. Without this legislation, UI benefits would have run out in June.

Did NOT Pass

Economic Relief for Businesses Affected by “Metro Surge”

As the devastation caused by the federal government’s “surge” continued to grow throughout the winter, DFLers took the lead in crafting a $100 million economic relief package for the many people and businesses affected. That legislation, SF 4535, the Minnesota Business Recovery Loan Program, passed the Senate with just a single Republican voting in support of struggling Minnesota business owners. Unfortunately, Republicans in the House prevented companion legislation from advancing.

The economic recovery package would have helped business owners who are still reeling after suffering significant losses during the recent federal Immigration actions. The assistance could have meant the difference between a business surviving or having to shut its doors for good due to the federal surge.

The relief package provided interest-free, forgivable loans to Minnesota-owned and operated businesses throughout the state. These loans would be administered through DEED, working with local federally authorized financial institutions known as Community Development Financial Institutions (CDFIs) to ensure that only qualified businesses impacted by the metro surge receive these state funds. Further, the funding source was an existing state program that supports business attraction, retention, and expansion, so there would have been no impact on the state budget.

Several other important job-creation and economic growth bills did not pass due to Republican opposition, especially in the House. Most of these bills were bipartisan in nature, including some authored by Senate Republicans. Examples of such Jobs bills passed by the Senate include:

  • A Senator Gustafson bill for a local news talent pipeline program to encourage Minnesotans to seek careers in journalism and local news operations, and to strengthen the capacity of Minnesota news outlets.
  • A Senator Champion bill, sponsored by a Republican in the House, to support a program to help teens at risk of or experiencing homelessness establish positive career pathways, helping them break cycles of poverty and avoid exploitation or chronic instability.
  • A Senator Hawj bill for the Getting to Work program that provides competitive grants benefitting economically disadvantaged people with job training and reliable transportation to work.
  •  A Senator Putnam bill for grants to a program providing training to prepare people for employment in the construction and health care industries.
  • A modification of a 2025 Senator Draheim bill enabling DEED to establish a Rural Cancer Institute pilot program. The modification was necessary to ensure that the program was only used to benefit Minnesota.


Despite not passing a standalone Job bill, several economic development and jobs-related provisions passed as part of the 2026 Capital Investment (bonding) bill. These include direct appropriations for manyindividual community projects throughout the state and funding for some programs at the Department of Employment and Economic Development. Through the bonding bill, DEED will receive:
 

  • $2 million for the Greater MN Business Development Public Infrastructure Grant Program, 
  • $ 2 million for the Innovative Business Development Grant Program, and 
  • $2 million for the Transportation Economic Development Infrastructure program. 


DEED will also receive funding for grants directed at projects across the state, which contribute to job creation and economic growth. Examples of such investments:
 

  • $250,000 for the New Pathways Program in Cambridge; 
  • $4.9 million for the Duluth Entertainment and Convention Center (DECC; 
  • $7.4 million for two development projects in St. Cloud; 
  • $2.3 million for the Olmstead County History Museum; and, 
  • $10 million for a Mahnomen skilled nursing facility.