This bill establishes new requirements for cost participation in trunk highway projects in Minnesota, specifically under a new section, [161.375] COST PARTICIPATION. It mandates that local units of government cannot be required to pay for project costs incurred within a trunk highway right-of-way or costs that arise as a direct result of the project, including utility relocation. The bill clarifies that these requirements apply regardless of facility ownership or the nature of the project benefits. However, costs resulting from agreements between the commissioner and local governments for additional work outside the project scope are exempt from these limitations. Additionally, the bill includes an appropriation of funds from the general fund to the commissioner of transportation for trunk highway projects that do not qualify for payment from the trunk highway fund, as outlined in section 161.375, subdivision 1. The appropriated amounts for fiscal years 2026 and 2027 are specified, and the funding is available until June 30, 2027. The bill also sets an effective date of July 1, 2025, for the new cost participation requirements, with a provision that they do not apply to projects included in the state transportation improvement program prior to that date.