Minnesota's COVID-19 Recovery Budget: A Historic Investment for Education, Small Businesses, and Workers

Strategic Insights -

As Minnesota emerges from the COVID-19 pandemic, Governor Tim Walz has signed the final bills in the state's COVID-19 Recovery Budget, a bipartisan effort to drive economic recovery, invest in education, and support essential workers and working families. The budget includes a historic investment in education, with $1.2 billion over four years, the largest formula increase in 15 years. The budget also allocates $70 million in COVID-19 relief for small businesses, $80 million in statewide grants for economic development and redevelopment, and $597 million to support child care businesses and increase access to affordable, quality child care.

Key Takeaways:

  • The COVID-19 Recovery Budget includes $1.2 billion in education funding over four years, the largest formula increase in 15 years, to ensure students catch up on learning and have the opportunity to succeed.
  • The budget allocates $70 million in COVID-19 relief for small businesses across the state, with $10 million set aside for minority-owned businesses, to protect their communities and save lives.
  • $80 million is invested through statewide grants to address the greatest economic development and redevelopment needs, with funds available as grants, loan guarantees, and awards prioritizing projects with the greatest regional economic impact.
  • $597 million is allocated to support child care providers and increase access to child care across the state, including $22.5 million for revitalization grants for child care facilities and $6 million for technical assistance to help providers reopen or start up.
  • $250 million is invested in direct financial support to Minnesota's essential workers on the frontlines of the COVID-19 pandemic, including long-term care workers.
  • The budget includes a one-time Minnesota Family Investment Program (MFIP) payment of up to $435 to support about 32,000 families, including 64,000 children, and a permanent MFIP cost of living adjustment to ensure benefits continue to support families as costs rise.
  • The budget also includes strong investments to build a brighter future for all Minnesotans, including support for veterans, public safety measures, and initiatives to connect people to the outdoors and mitigate climate change.

Statistics:

  • $1.2 billion in education funding over four years, the largest formula increase in 15 years.
  • $70 million in COVID-19 relief for small businesses across the state, with $10 million set aside for minority-owned businesses.
  • $80 million invested through statewide grants to address economic development and redevelopment needs.
  • $597 million allocated to support child care providers and increase access to child care.
  • $250 million invested in direct financial support to essential workers.
  • 32,000 families to receive a one-time MFIP payment of up to $435.
  • 64,000 children to benefit from the MFIP payment.
  • 312,000 veterans supported through the Governor's budget.
  • $8.2 million to ensure Minnesota continues to serve veterans.
  • $1.65 million to support a statewide initiative for Veteran Suicide Prevention.
  • $6.3 million to support Veteran homelessness efforts.

Sources:

  • St. Paul, Minnesota, July 2 -- Gov. Tim Walz, D-Minnesota, issued the following news release: Governor Tim Walz has signed the final bills in Minnesota's COVID-19 Recovery Budget.
  • [Source 1] Governor Tim Walz, D-Minnesota, July 2, 2023, News Release: Governor Walz Signs Final Bills in Minnesota's COVID-19 Recovery Budget.
  • [Source 2] A list of COVID-19 Recovery Budget bills signed into law by Governor Tim Walz.