ST. PAUL, MN – On Friday, the MN House advanced the Workforce, Labor, and Economic Development omnibus bill, which delivers meaningful reform, promotes accountability, and protects working Minnesotans from unnecessary cost increases, all while staying under the committee’s $50 million budget target cut.
The bill reins in wasteful spending by cutting $50 million and redirects $13 million from failed programs into more cost-effective initiatives. It reflects a deliberate shift away from the unchecked nonprofit spending that contributed to historic levels of fraud in recent years. Under the new approach, grant funding will be awarded through a competitive process, eliminating politically directed payouts and prioritizing transparency.
Republican Chair Dave Baker (R-Willmar), who helped shape the bill, said the focus this year was clear: rebuild trust and restore integrity.
“People are tired of seeing their tax dollars funneled into programs with little oversight or accountability," said Baker. "This bill marks a return to disciplined, transparent budgeting that Minnesotans can have confidence in.”
Alongside fraud prevention measures, the bill also strengthens Minnesota’s workforce pipeline by investing in teacher apprenticeships and expanding access to early childhood education training. These efforts are particularly aimed at helping rural communities address growing staff shortages in education and childcare.
“We can’t grow our economy without investing in the people who power it,” Baker said. “That means helping educators get the training they need and making sure every community has access to qualified teachers and childcare providers.”
The legislation also restores $5 million in funding for vocational programs serving Minnesotans with disabilities, funds that had been jeopardized by state mismanagement. Republicans successfully fought to make this investment a priority.
Finally, the bill blocks a significant proposed fee increase on construction inspections, which would have driven up housing costs at a time when affordability is already top of mind for Minnesota families.
While the House bill does not address Paid Family Medical Leave (PFML) or Earned Sick and Safe Time (ESST), the Senate has begun conversations on potential revisions to make the policies more affordable to small businesses and workers. These discussions will be a priority through the final weeks of session.
“This bill is about one thing: Making Minnesota competitive again by helping workers, cutting waste, and saying no to additional burdensome costs on workers and small businesses," Baker concluded.
The bill passed with a final vote of 115-19.
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