This bill addresses transportation funding in Minnesota by reallocating appropriations for the Northern Lights Express passenger rail project and initiating a study on intercity bus service between Minneapolis-St. Paul and Duluth. Specifically, it appropriates funds from the general fund for a study that will analyze current demand and service levels, evaluate potential improvements, and provide recommendations for enhancing intercity bus service. The commissioner of transportation is required to submit the study findings to relevant legislative committees by February 1, 2026.

Additionally, the bill cancels the uncommitted balance of approximately $194.4 million from a previous appropriation for the Northern Lights Express project, redirecting those funds back to the general fund. It also mandates a transfer of funds from the general fund to the highway user tax distribution fund, calculated based on the canceled appropriation minus the amount allocated for the bus study. Both the cancellation and transfer provisions are effective the day following final enactment.