The bill proposes the establishment of the Minnesota Made PFAS Alternative grants, aimed at promoting economic development by providing financial support for projects that create alternatives to per- and polyfluoroalkyl substances (PFAS). A total of $10,000,000 is appropriated from the general fund for fiscal year 2026, with the funds available until July 1, 2027. The commissioner of employment and economic development is tasked with creating a 30-day application window for eligible grantees, who must be based in Minnesota and demonstrate the ability to develop PFAS-free alternatives using products from rural Minnesota.

Eligible applicants will be evaluated based on their expertise in fiber technologies, material science, and coatings, as well as their capacity 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 are limited to one year, ensuring that the funding is directed towards timely and impactful projects.