This bill appropriates funds to the Minnesota Housing Finance Agency for the economic development and housing challenge program. Specifically, it allocates $22,925,000 for fiscal year 2026 and $12,925,000 for fiscal year 2027 from the general fund. These funds are designated for the economic development and housing challenge program as well as low- and moderate-income housing programs as outlined in Minnesota Statutes.

Additionally, the bill stipulates that $1,208,000 of the fiscal year 2026 appropriation, and each year thereafter, will be exclusively reserved for housing projects aimed at American Indians during the first 11 months of the fiscal year. If these funds are not fully committed to such projects, they may then be utilized for any eligible activities under the relevant Minnesota Statutes.