Purpose

This bill provides money from the state’s general fund to support rural economic development in Minnesota. It designates funding to help small, rural communities with technical help and specific development projects, aimed at improving local economies.

Main Provisions

• Amount and source: In fiscal year 2026, $627,000 is appropriated from the general fund.
• Recipient: The grant goes to Community and Economic Development Associates (CEDA), through the commissioner of the Department of Employment and Economic Development.
• What the funds cover: The money is for funding economic development technical assistance and economic development project grants to small communities across rural Minnesota.
• Program design and administration: CEDA will design, implement, market, and administer basic community and economic development programs tailored to each community’s needs.
• Need-based distribution: Technical assistance grants are based on need and are intended for communities that otherwise cannot afford these services.
• Project implementation: Up to $270,000 of the total appropriation may be used for economic development project implementation in conjunction with the technical assistance.
• One-time nature: This is a one-time appropriation.

Significant Changes to Existing Law

• The bill creates a one-time funding mechanism via an appropriation to CEDA to provide rural economic development services. It does not establish ongoing funding or broad statutory changes, but it authorizes this specific, temporary use of funds for targeted rural programs.

Fiscal/Administration Notes

• Source of funds: General Fund.
• Administration: Administered by the Commissioner of Employment and Economic Development.
• Oversight: Funding is linked to CEDA’s delivery of both technical assistance and project grants for rural communities.

Summary in Plain Language

The bill gives Minnesota $627,000 in 2026 to fund a grant to a group called CEDA. CEDA will use the money to help rural, small communities with technical advice and smaller development projects to boost their local economies. The help and projects are meant for communities that can’t afford these services on their own, and up to $270,000 can be used specifically for putting projects into action. This is a one-time funding action.

Relevant Terms - appropriation - general fund - commissioner of employment and economic development - grant - Community and Economic Development Associates (CEDA) - economic development technical assistance grants - economic development project grants - small communities - rural Minnesota - need-based - project implementation - one-time appropriation - fiscal year 2026