Minnesota Subsidized and Transitional Employment Demonstration (MSTED)

In addition to MFIP employment services, MSTED participants received job-readiness assessments, one-on-one training to support job readiness, and assistance finding subsidized employment. Subsidized employment under the MSTED model took two forms. The first form, which aimed to improve participant workplace skills, was a paid work experience at a public agency or nonprofit organization for up to 24 hours per week for up to 8 weeks. Participants earned a fully subsidized wage of $9 per hour under this option. The second form of subsidized employment, which was intended for participants deemed more job-ready by MSTED staff, provided participants with subsidized wages of up to $15 per hour for up to 40 hours per week at a private employer. Participants’ wages at private employers were fully subsidized for the first 8 weeks, then 50 percent subsidized for a subsequent 8 weeks. MSTED provided services for a minimum of eight weeks and provided job readiness services as needed during this time. Participants were recipients of MFIP services who were referred to the MSTED program in Ramsey, Dakota, and Hennepin Counties in Minnesota. MFIP was Minnesota’s Temporary Assistance for Needy Families (TANF) program.