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NEW ULM -- Workforce development, infrastructure, clean energy and housing were all major topics during last week's Coalition of Greater Minnesota Cities (CGMC) summer conference in New Ulm.
As part of the conference, representatives from Flaherty & Hood outlined state and federal grant opportunities available to help in these areas.
Speakers Darielle Dannen, Elizabeth Wefel and Darrin Lee detailed funding available to local governments and businesses.
Dannen began by highlighting the Minnesota Job Skills Partnership, administered through the Department of Employment and Economic Development (DEED).
This board receives funding outside the regular state legislative budget process and accepts proposals every quarter.
“This is my favorite grant area for workforce development that lives at DEED,” Dannen said. “It is fairly substantial funding up to $500,000.”
Local governments can partner with educational institutions to secure these funds for specialized employee training programs.
She also discussed the Dual Training Grant program, funded through the Office of Higher Education and the Department of Labor and Industry.
This grant helps cities and local employers set up paid apprenticeships in industries such as information technology and transportation.
For small rural towns facing local childcare shortages, Dannen pointed to First Children's Finance.
The organization offers an 18- to 24-month technical assistance program that helps small communities create local childcare solutions. Applications for this technical support opened July 15.
Dannen also covered state funding for small employers adapting to state paid leave laws.
“No matter what your thoughts are on paid leave, you are an employer,” Dannen said. “If you are a small employer, you can apply directly for some grant funding to help fill the void if you have staff who are taking advantage of paid leave.”
Small businesses and local housing authorities can apply for part of a $5 million state fund available each year to offset expenses when workers take extended leave.
Dannen urged local leaders to submit applications while funds remain open, noting that most of the $5 million allocation is still available.
In the housing sector, Dannen reviewed capacity-building grants available to non-profit partners and cities seeking to attract housing developers.
She explained that municipalities can apply directly for most of these programs.
She also said an upcoming $4 million lead pipe removal program from Minnesota Housing focused on residential risk assessments and pipe replacement on a first-come, first-served basis.
Lee presented grant programs focused on local transportation, road safety and community facilities.
He explained the PROTECT Act, established under federal infrastructure legislation.
“This was included in the Bipartisan Infrastructure Law,” Lee said. “It’s $7.3 billion that’s allocated as a formula to the states.”
Minnesota received $113 million to help roads, bridges and surface pavement withstand extreme weather and freeze-thaw cycles.
Projects listed in the Minnesota Resilient Improvement Plan require a 13% local cash match, while unlisted projects require a 20% match.
Lee discussed the Empowerment Small Programs initiative, managed by the University of Minnesota Center for Transportation Studies.
“You have to be a community of under 15,000,” Lee said. “A lot of it is for technical assistance in developing proposals, and the good thing about this one is there is no match requirement.”
He also covered pedestrian funding sources, including Greater Minnesota Transportation Alternatives and the Safe Routes to School program. Lee said Safe Routes to School is a state program focused on improving infrastructure for bikes, paths and pedestrian facilities.
The program has $1.5 million set aside for fiscal years 2026 and 2027.
Closing out the transportation section, Lee noted the Library Construction Grant program administered by the Minnesota Department of Education.
The state bonding bill included $2 million for these projects. Cities can apply for grants up to $1million to cover up to 50% of construction costs, or up to $450,000 for accessibility improvements.
Wefel presented environmental, clean energy and park improvement grants. She highlighted the Legislative-Citizen Commission on Minnesota Resources Community Grants Program, which offers $28 million drawing from the state Environmental and Natural Resources Trust Fund.
No local matching funds are required.
“We need money dedicated to trail maintenance because there is a whole bunch of trails out there in Minnesota that are falling apart,” Wefel said. “You can get money to build new trails, but it’s hard to get money to maintain those.”
The funding limit for trail maintenance projects was raised to $2 million per grant.
Regarding energy initiatives, Wefel detailed the Minnesota Storage Incentive Program, managed by the Minnesota Department of Commerce.
“Basically, it’s incentives to build storage systems attached to solar,” Wefel said. “They’ve got $1.5 million remaining on this, and you can get up to $7,000 rebate on the storage.”
Cities can also access the Minnesota Competitiveness Fund, which holds $38 million in remaining funds for matching grants up to $1 million.
Wefel explained that municipal electric utilities can take advantage of federal clean energy tax credits using direct pay tax options created under the Inflation Reduction Act.
“If you are a city or a city-owned utility, you don’t pay taxes and so you can’t get that credit,” Wefel said. “What they did in the IRA is the federal government established this thing called direct pay, and basically what it does is it converts what would be a tax credit if you were a for-profit business, it makes it a rebate for you.”
Additionally, Wefel reviewed Minnesota Department of Natural Resources park and trail grants, including Local Trail Connections grants capped at $250,000, Natural Scenic Area acquisition grants, and Outdoor Recreation grants.
She also said the Minnesota Pollution Control Agency Waste Reduction, Reuse, Recycling and Composting grant program, which offers $50,000 to $250,000 with a required 25% local match.
Wefel urged city leaders to submit project applications during this initial cycle before available state appropriations are redirected to other programs.