Fresh investigative reporting is putting Minnesota's PROMISE Act grants under a bright spotlight, raising doubts about whether every winning business actually met the program's rules. Reviewers say some awardees were listed at addresses outside the statute's designated corridors, showed lapsed registrations, or in some cases appeared dormant. That has lawmakers and administrators re-examining vetting before a second round of money goes out, while program managers and state officials say they are combing through files and will act if they find misuse.
Business Journal Spots Holes In Grant Screenings
A report by the Minneapolis/St. Paul Business Journal flagged multiple winners that investigators say may not have met the PROMISE Act's geography or operating-status requirements, including entries tied to addresses that do not match active storefronts or businesses, according to the Minneapolis/St. Paul Business Journal. The paper's review added fuel to broader questions about how transparent the program's public records and application lists really are.
TV Crew Hits The Street, Finds Red Flags
KSTP's 5 INVESTIGATES team took the vetting a step further, tracking public records with on-the-ground visits and surfacing several specific problems: Paradise Assisted Living received more than $21,000 despite its main location being in Bloomington, a transportation firm was listed at a Lake Street mailbox whose property owner said it has never hosted the company, and a carrier shown in federal records as out of service in 2021 also received funds. KSTP reported that no one has been charged, and that agency officials and grantees say they are reviewing cases and promising fixes. KSTP
How The PROMISE Act Money Was Handed Out
The Minnesota Department of Employment and Economic Development set aside roughly $94.3 million for PROMISE Act grants to be distributed through partner organizations, with the Neighborhood Development Center handling the Twin Cities rollout, according to DEED. NDC - which has said it is applying lessons from round one - ran a simplified application process that, program materials and local reporting show, produced hundreds of winners and several million dollars distributed in the metro area, per the Neighborhood Development Center and Twin Cities Business.
Lawmakers Hit The Brakes, Demand Tighter Checks
State lawmakers at the Capitol are now pressing for answers in the wake of the new reporting, with Rep. Dave Baker urging colleagues to "stop for a minute" and review the program's vetting before more dollars leave state accounts, according to House Session Daily. Legislators said flagged applications have been referred for review and urged DEED and its grant partners to lock down tighter controls while that process plays out.
Oversight Fight Looms, But No Charges Yet
So far, no criminal charges have been announced, but agency officials told reporters they take the concerns seriously and would pursue recovery if they determine money was misused. KSTP reported that DEED's updates to the Legislature outline new technologies and extra screening steps meant to catch mismatched or fraudulent applications as the program moves into round two. KSTP
