SF4026

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)