The bill proposes the establishment of the Minnesota Made PFAS Alternative Grant program, which aims to support the development of alternatives to per- and polyfluoroalkyl substances (PFAS) in agricultural products. A total of $10,000,000 is appropriated from the general fund for fiscal year 2026 to the commissioner of employment and economic development for this purpose. The funds will be available until July 1, 2027, and the commissioner is tasked with creating a 30-day application window for eligible grantees, who must be based in Minnesota and demonstrate the capacity to execute projects that promote PFAS-free alternatives using rural Minnesota products.

Eligible applicants will be evaluated based on their expertise in fiber technologies, material science, and coatings, as well as their ability to produce products that utilize agricultural co-products without competing for food resources. The grant proceeds can be used to enhance the manufacturing and processing of agriculture-related products and PFAS-free alternatives, with a maximum grant award of $5,000,000 and a minimum of $2,000,000. Grant terms will not exceed one year, ensuring that the funding is directed towards timely and impactful projects.