This bill (S.F. No. 2197) proposes the establishment of a Drivers Education Financial Assistance Pilot Program in Minnesota to expand access to driver education courses and driver’s licenses for eligible low-income or disadvantaged youth ages 15 to 24. The bill outlines the following key provisions:

1. Creation of a Pilot Program

   • The Department of Public Safety would oversee a grant program for eligible entities, such as school districts, local governments, federally recognized Tribes, and nonprofits.
     
   • The program would operate in at least one urban, rural, suburban, and Tribal community to ensure broad participation.
     

2. Financial Assistance Eligibility

   • Eligible participants must be low-income or disadvantaged youth meeting specific criteria, including:
     • Recently experiencing homelessness.
     • Being in foster care or receiving extended foster care benefits.
     • Receiving housing support or assistance under the Minnesota Family Investment Program.
     • Participating in juvenile diversion or restorative justice programs.
     • Demonstrating financial hardship preventing them from obtaining a driver's license.

3. Funding & Eligible Expenditures

   • The program would be funded through a special revenue account, with funds used only for program-related expenses.
   • Each participant may receive up to $2,000 to cover costs, including:
     • Driver’s education courses and behind-the-wheel instruction.
     • Fees for instructional permits and driver’s licenses.
     • Vehicle use for road tests.
     • Payment of past fines or fees preventing the issuance of a valid driver’s license.

4. Administration & Oversight

   • A referral system would be established to connect eligible youth with assistance.
   • Grants would be provided to up to 200 eligible youth per location.
   • Up to 15% of total funds could go toward administrative costs.
   • Participants would be required to report data on program outcomes, such as the number of awarded grants and the number of participants successfully obtaining licenses.

5. Reporting & Work Group

   • Annual reporting on expenditures and outcomes would be required.
     
   • A work group would be formed, consisting of state officials, driver education providers, and a program participant, to study driver education availability, barriers to participation, and potential permanent funding sources.
     
   • A final report with recommendations would be submitted to the legislature by February 1, 2026.

6. Expiration & Funding

   • The pilot program expires on June 30, 2028.
     
   • A one-time appropriation of $3,850,000 for fiscal year 2026 from the general fund is allocated to run the program and support reporting and work group functions.

This program aims to improve youth access to driver's education and licenses, particularly for low-income or underserved communities, by reducing financial barriers.