SF4026 (Legislative Session 94 (2025-2026))
Department of Veterans Affairs issued competitive grants standards for usage establishment
Related bill: HF3684
AI Generated Summary
Purpose
Establish standards for how competitive grants issued by the Department of Veterans Affairs are used and tracked. Create a formal framework for who can receive grants, how grant money can be used, how awards are decided, and how grantees must report on their activities and outcomes. The aim is to ensure grants serve Minnesota veterans and their immediate family members, with accountability and transparency.
Key Definitions
- Commissioner: the commissioner of veterans affairs.
- Veteran: a Minnesota resident who served in the U.S. armed forces.
- Dependent child: a child under 22 who is a biological or adopted child of a veteran.
- Immediate family member: a spouse or dependent child of a veteran.
Grantee Eligibility
- Eligibility criteria for recipients:
- A Minnesota-based nonprofit organization.
- Has been operating for at least five years.
- In good standing with the Minnesota Attorney General.
- Has a current IRS Form 990 on file.
Allowed Use of Grant Funds
- Grants may only be used to provide services to:
- Minnesota veterans,
- Immediate family members of a Minnesota veteran,
- Immediate family members of a Minnesota veteran who died in the line of duty.
- If resources are limited and not all eligible applicants can be served, funds must prioritize veterans with physical, mental, or chemical health disabilities.
Grant Scoring and Award Amounts
- The commissioner must create a grant application scoring system.
- The scoring must consider an applicant’s demonstrated history of serving veterans and include measurable outcomes for veterans already served.
- Grant amounts are determined based on the scoring results.
- An applicant’s request for a designated grant amount cannot be used to determine the actual grant amount awarded.
Oversight, Suspension, and Accountability
- The commissioner may withhold grant funds if:
- The grantee commits fraud,
- The grantee is under criminal investigation,
- The grantee’s conduct brings Minnesota or the Department into disrepute,
- The grantee cannot deliver the required services.
Reporting Requirements
- Beginning in 2027, by February 15 each year, grantees must report to the commissioner with:
- Purpose of the grant,
- Grant amount provided,
- Amount of prior grants issued to the grantee,
- Amount of other state and federal grants received by the grantee in the most recent fiscal year,
- Number of veterans, active service members, and immediate family members served,
- Number who completed the program and the criteria used to determine successful completion,
- The grantee’s charitable giving ratio.
- The commissioner may require additional information as specified in the grant agreement.
- Beginning in 2027, by March 1 each year, the commissioner must report to the chairs and ranking minority members of the legislative committees with jurisdiction over veterans affairs policy and finance. The report should summarize and aggregate the data from all grantees.
Administrative Costs
- The commissioner may retain up to five percent of the total appropriation for competitive grants to cover administrative and compliance monitoring costs.
Interaction with Other Laws
- The requirements for competitive grants in this section operate in addition to the grants management requirements in sections 16B.97 to 16B.991.
Significant Changes to Existing Law
- Introduces formal definitions and eligibility criteria for grant recipients (eg, 5+ years in operation, AG good standing, Form 990 on file).
- Specifies who may benefit from grants (veterans and immediate family members, including dependents of those who died in the line of duty).
- Establishes a mandatory grant scoring system with emphasis on demonstrated history and measurable outcomes, tying awards to scoring rather than applicant-requested amounts.
- Mandates prioritization of services for veterans with physical, mental, or chemical health disabilities when resources are limited.
- Creates annual reporting requirements for grantees and a public-facing aggregated report to legislative committees.
- Allows an administrative cost cap (up to 5%) for grant management.
- Adds explicit accountability mechanisms, including grounds for withholding funds and disrepute risk.
- Expands integration with existing grants management requirements, making these grants an addition to, rather than a replacement for, current law.
Relevant Terms - competitive grants - Department of Veterans Affairs - Minnesota veterans - grantee - grant scoring system - measurable outcomes - veterans with physical health disabilities - veterans with mental health disabilities - veterans with chemical health disabilities - dependent child - immediate family member - nonprofit organization - IRS Form 990 - Attorney General (AG) good standing - reporting requirements - administrative costs - fraud - criminal investigation - disrepute - line of duty - grants management (16B.97 to 16B.991)
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 02, 2026 | Senate | Action | Introduction and first reading | ||
| March 02, 2026 | Senate | Action | Referred to | Agriculture, Veterans, Broadband, and Rural Development |
Citations
[
{
"analysis": {
"added": [
"Definitions for terms used in the grant program: Commissioner, Dependent child, Immediate family member, Veteran."
],
"removed": [],
"summary": "Defines key terms for Minnesota Statutes section 196.055, establishing a framework for competitive grants administered by the Commissioner of Veterans Affairs.",
"modified": []
},
"citation": "196.055",
"subdivision": "Subd.1"
},
{
"analysis": {
"added": [
"Grants eligibility: Minnesota-based nonprofit organization operating for at least five years; in good standing with the Office of the Attorney General; has a current federal tax form 990 on file with the IRS."
],
"removed": [],
"summary": "Establishes grantee eligibility for competitive grants under section 196.055.",
"modified": []
},
"citation": "196.055",
"subdivision": "Subd.2"
},
{
"analysis": {
"added": [
"Grants may be used only to provide services to Minnesota veterans and immediate family members of Minnesota veterans or deceased Minnesota veterans who died in the line of duty."
],
"removed": [],
"summary": "Imposes limitations on how grant funds may be used.",
"modified": [
"Prioritization if resources are limited: veterans with physical, mental, or chemical health disabilities receive priority."
]
},
"citation": "196.055",
"subdivision": "Subd.3"
},
{
"analysis": {
"added": [
"Scoring based on applicants' demonstrated history of serving veterans."
],
"removed": [],
"summary": "Requires the commissioner to create a grant application scoring system.",
"modified": [
"System must include measurable outcomes for veterans previously served by the applicant."
]
},
"citation": "196.055",
"subdivision": "Subd.4"
},
{
"analysis": {
"added": [
"Grant amounts are determined based on the scoring results."
],
"removed": [],
"summary": "Determines grant amounts.",
"modified": [
"The grantee's requested grant amount cannot be a factor in determining the final award amount."
]
},
"citation": "196.055",
"subdivision": "Subd.5"
},
{
"analysis": {
"added": [
"Withholding of grant funds if the grantee commits fraud, is under criminal investigation, brings disrepute to the state or the Department of Veterans Affairs, or cannot deliver required services."
],
"removed": [],
"summary": "Provides for suspension of grant funds under certain conditions.",
"modified": []
},
"citation": "196.055",
"subdivision": "Subd.6"
},
{
"analysis": {
"added": [
"Report due by February 15 each year, starting 2027, including: purpose, grant amount, prior grants issued, other state/federal grants, number served, outcomes and completion criteria, and charitable giving ratio."
],
"removed": [],
"summary": "Requires annual reporting by grantees starting in 2027.",
"modified": []
},
"citation": "196.055",
"subdivision": "Subd.7"
},
{
"analysis": {
"added": [
"Commissioner may require reporting beyond the specified items if specified in the grant agreement."
],
"removed": [],
"summary": "Allows the commissioner to require additional information in reports as needed.",
"modified": []
},
"citation": "196.055",
"subdivision": "Subd.7"
},
{
"analysis": {
"added": [
"The commissioner may retain up to five percent of the amount appropriated for competitive grants to cover administrative and compliance monitoring costs."
],
"removed": [],
"summary": "Allocates administrative cost allowances for grant management.",
"modified": []
},
"citation": "196.055",
"subdivision": "Subd.8"
},
{
"analysis": {
"added": [
"Notwithstanding other laws, the requirements for competitive grants are in addition to grants management requirements under sections 16B.97 to 16B.991."
],
"removed": [],
"summary": "Clarifies interaction with other law.",
"modified": []
},
"citation": "196.055",
"subdivision": "Subd.9"
},
{
"analysis": {
"added": [
"Explicitly states that the new section 196.055 requirements are in addition to the applicable grants management requirements in 16B.97 to 16B.991."
],
"removed": [],
"summary": "Cross-reference indicating that the new competitive grants requirements operate in addition to existing grants management requirements.",
"modified": [
"Maintains the applicability of existing 16B.97-16B.991 grants management provisions alongside the new 196.055 framework."
]
},
"citation": "16B.97 to 16B.991",
"subdivision": ""
}
]Progress through the legislative process
In Committee