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Governor Walz Announces $12 Million For Workforce Development

August 2025

8/13/2025 12:03:28 PM

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[ST. PAUL, MN] – Governor Tim Walz and the Minnesota Department of Employment and Economic Development (DEED) today announced $12 million for workforce development for Minnesotans. The State Drive for 5 program provides competitive grants to provide workforce training and job placement in five high growth industries: caring professions, education, manufacturing, technology and the trades.

"Minnesota depends on a skilled, trained, and educated workforce," said Governor Walz. "We're equipping Minnesotans with the support they need to step into high-demand industries, helping employers fill critical positions, supporting families and communities, and keeping our state competitive."

"Drive for 5 strategically targets occupational categories that are projected to be high-growth in the years ahead and that provide jobs with family-sustaining wages for workers," said DEED Commissioner Matt Varilek. "We're building on the program's initial successes to benefit even more Minnesotans who need training and assistance to join the labor force in high-demand fields and to support Minnesota's economy by preparing people for in-demand careers and meeting employers' needs."

"We are excited about this initiative and encourage training program providers, industry associations, chambers of commerce and other business organizations to apply for this next round of Drive for 5 grant funding," said DEED Deputy Commissioner for Workforce Development Marc Majors. "The Drive for 5 initiative has been pivotal in transitioning Minnesotans into family-sustaining-wage careers that help lead to generational wealth."

DEED launched Drive for 5 in 2023 to expand access to workforce training in occupational groups where there is high demand for employees and a pathway to careers with family-sustaining wages. Drive for 5 is a unique approach to two of Minnesota's most challenging problems: employment disparities faced by Minnesotans and a labor force shortage in key fields.

The Drive for 5 grant round announced today is comprised of two programs:

  • Industry Sector Training for partners that provide workforce development services, work-based learning opportunities, and job placement and retention. These programs prioritize transitioning participants from credentialed training to paid work-based learning opportunities, with the ultimate goal of securing employment or achieving career advancement within a related company or industry.
  • Job Placement Services for partners that ensure Drive for 5 – Industry Sector Training program graduates are connected with employers that are currently hiring or anticipate near future employment opportunities in the program's five targeted sectors.

DEED awarded nearly $20 million in Drive for 5 grants during the previous biennium. So far, initial grantees have enrolled approximately 800 Minnesotans in training programs.

Informational webinars for this grant round will take place on August 22.

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