The bill mandates the commissioners of human services and children, youth, and families to report by January 15, 2026, on the feasibility of a demonstration project aimed at continuing program benefits for individuals who become ineligible for certain programs during a transition period. This initiative seeks to mitigate benefit cliffs and encourage individuals to pursue career advancement opportunities. The report will evaluate various health care, income assistance, and social service programs, identifying those for which it is feasible to maintain benefits despite increased employment income.

In assessing the feasibility of the demonstration project, the commissioners are required to provide recommendations on several key aspects, including the specific programs involved, income and time limits for receiving transition benefits, and the characteristics of participating counties. Additionally, they must consider necessary changes to program benefits to ensure budget neutrality, any required federal waivers or law changes, and establish evaluation criteria for the project. The evaluation will specifically include programs such as medical assistance, MinnesotaCare, and the Minnesota family investment program, among others.