The bill proposes the establishment of a Community Festival Grant Program, which allocates a total of $2.5 million from the arts and cultural heritage fund over two fiscal years (2026 and 2027). Specifically, it appropriates $1,250,000 for each year to the Board of Directors of the Minnesota Humanities Center. The funds are intended to support community-based organizations, cities, and counties in hosting cultural festivals and events across Minnesota. Eligible expenses for the grants include event programming, staffing, community outreach, transportation, facilities and equipment rentals, and signage.

Additionally, the bill designates up to $200,000 of the appropriated funds for public safety expense reimbursement to county sheriff departments in support of these festivals and events. The Minnesota Humanities Center is instructed to prioritize funding for specific cultural celebrations, including the Somali Museum Annual Celebration, Twin Cities Jazz Fest, Selby Avenue Jazz Fest, Hmong Festival, Cinco de Mayo festival, Rondo Days in St. Paul, Hiddo Soor International Somali Cultural Festival in Plymouth, and Safe Summer Nights and Somali Independence Day in St. Paul.