Minnesota Allocating American Rescue Plan Funding to Schools, Workforce Development, Homeless Shelters

(KNSI) – Gov. Tim Walz announced Friday that Minnesota has received $106 million in American Rescue Plan Funding, and most of those funds will be diverted toward helping K-12 students, increasing the number of workers for critical industries and helping homeless shelters respond to COVID-19 and keeping people warm this winter.

“President Biden’s American Rescue Plan delivers direct relief to Americans by providing resources to beat this pandemic and build a stronger economy for generations to come. That’s exactly what we’re prioritizing here in Minnesota,” Walz said. “With this funding, we are helping students recover from the challenges of the COVID-19 pandemic, driving workforce development in critical, good-paying fields, and providing safe shelter to the Minnesotans who need it most before our harsh winter months.”

Friday’s announced allocation is a slice of the $500 million the state is receiving for immediate COVID recovery efforts, with $1.15 billion on its way to be allocated in the 2022 legislative session for long-term pandemic recovery. Minnesota will also get $1.183 billion in state revenue replacement, for a total of $2.833 billion in American Rescue Plan funding for the state government. (Local governments also got $2.132 billion, and $3.505 billion is going toward federally funded programs in the state.)

For the workforce development funds, Walz’s office says the $35 million will go toward tuition-free paths at public and tribal colleges and universities to get students into fields like nursing, firefighting and engineering. That will happen through the Workforce Stabilization Grant program.

$29 million allocated for students is intended to be a one-time investment in schools so that K-12 students are not negatively impacted by enrollment loss during the pandemic, Walz’s office says.

Then, $10 million will go toward homeless shelters, providing funds for staff hazard pay and COVID-19 safety needs like isolation rooms, PPE and air filtration.

Also included in the state’s September 3rd funding authorization request:

$11,495,000 for Minnesota Zoo’s operations
$3,798,000 for the Science Museum’s operations
$3,000,000 for state parking facilities
$4,000,000 for enterprise planning, space consolidation, and agency relocation
$3,175,000 for workers’ compensation
$4,000,000 for education partnerships

“The COVID-19 virus continues to impact Minnesotans in every corner of the state,” said Lt. Gov. Peggy Flanagan. “I am grateful for the federal American Rescue Plan, as Minnesotans need support following one of the most challenging periods in our history. We will continue to prioritize students, families, and Minnesotans experiencing homelessness as we work to recover and rebuild together.”

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