Senate jobs committee hears emergency shortfall in vocational rehabilitation funding; several workforce and small‑business relief bills laid on table

A state program that helps Minnesotans with disabilities prepare for and keep employment is facing an immediate funding cliff that prompted staff layoff notices and warnings the program will be unable to serve hundreds of participants.

Chandra Peterson, a career counselor with Vocational Rehabilitation Services (VRS), told the Senate Jobs and Economic Development Committee that VRS "helped 9,492 Minnesotans with disabilities gain successful employment" from 2019–2023 and that federal reimbursements returned $25,800,000 to the program in that period. "The work that we do at VRS is very important and vital to Minnesotans with disabilities and the state's economy," Peterson said.

The department’s shortfall has already produced personnel actions. "On Monday, March 31, VRS staff received a layoff notice," said Sheena Jewison, a VRS rehabilitation counselor speaking as a member of the Minnesota Association of Professional Employees union. Jewison said rumors of layoffs and a hiring freeze prompted her to accept a new job outside the agency; she warned that "nearly 2,000 VRS participants will be left without a dedicated staff they can rely on to help them navigate their path to employment and self sufficiency."

Why it matters

VRS provides counseling, work‑readiness training and workplace accommodations that permit many clients to earn wages off public benefits. Committee members and…