This bill focuses on workforce development by modifying the appropriations from the workforce development fund. It introduces a new provision titled "PAY FOR PERFORMANCE," which allocates a specific percentage of the funds for performance-based grants. Specifically, it designates 25 percent of the appropriated amounts for fiscal year 2026 and 50 percent for fiscal year 2027 to be used for performance grants as outlined in Minnesota Statutes, section 116J.8747.

The bill aims to enhance the effectiveness of workforce development initiatives by tying funding to performance outcomes, thereby incentivizing pass-through entities to achieve measurable results. This shift in funding strategy reflects a commitment to ensuring that workforce development investments yield tangible benefits for the state’s economy and its workforce.