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 stipulates that a portion of the funds allocated for grants to pass-through entities will be designated as performance grants. Specifically, 25 percent of the appropriated amounts for fiscal year 2026 and 50 percent for fiscal year 2027 will be allocated for these performance grants, as outlined in Minnesota Statutes, section 116J.8747.

The bill aims to incentivize performance-based outcomes in workforce development initiatives, ensuring that a significant portion of funding is tied to measurable results. This shift in funding strategy reflects a commitment to enhancing the effectiveness of workforce development programs in Minnesota.