Senator Mohammed introduced Senate File 670, which would appropriate $2.5 million in each fiscal year beginning in 2026 to support evidence‑based employment services — Individual Placement and Support (IPS) — for people with serious mental illness. The sponsor said the funding would “provide grants to operate programs that provide evidence based employment support services to persons with mental illness.”

Robert Reedy of RISE, which represents a coalition of 22 IPS providers, described IPS outcomes: “IPS...has a placement rate of 61 percent, higher than the national average of 55 percent,” and warned that without an ongoing increase providers would reduce services when one‑time pandemic funding ends. Reedy said providers need roughly $1.95 million per year to maintain current capacity and are asking for $2.5 million annually to sustain existing programs and permit expansion.

Sarah Nispel of NAMI Minnesota summarized the IPS model and why it differs from other vocational services: “IPS starts a job search as soon as the participant says they want to work, regardless of history of substance use, hospitalizations, or homelessness,” and integrates employment services with mental‑health treatment and employer accommodations.

Several testifiers told the committee IPS coverage is incomplete across the state. Reedy said roughly 44 of Minnesota's 87 counties have IPS coverage and that the funding increase would help expand services to unserved areas. Committee members asked DEED staff (identified in the hearing transcript as Miss Noma) for clarification on prior funding, whether existing temporary funds could be spent to expand services, and how much of the previous $2.5 million one‑time increase had been drawn down. DEED staff reported the program’s base had historically been approximately $2.5 million per year and that a temporary increase had raised annual spending to $5 million per year for 2024‑25; the department said roughly half of the prior direct appropriation had been drawn down to date.

Individuals with lived experience described the program’s impact. Samantha Manthey said IPS helped her move to full‑time employment and into her own apartment; she testified the coaching and wraparound supports were key to maintaining employment. A public commenter, Maryam Miguel, emphasized the need for culturally competent services for immigrants and refugees.

Committee members asked for additional fiscal detail and discussed whether the proposed increase would sustain services or expand coverage. Senator Mohammed and several co‑authors argued the funding would stabilize and expand a program with strong documented outcomes. The committee laid the bill over for possible inclusion; no final appropriation was taken at the hearing.