The bill establishes a Tax-Stressed Cities Demolition Grant Program aimed at providing financial assistance for the demolition of qualifying properties in cities that are experiencing economic challenges. The program will grant up to 50% of the demolition costs for properties that have been vacant for at least one year and pose a threat to public safety due to their condition. The bill defines key terms such as "qualifying property" and "tax-stressed city," and outlines the application process, which requires approval from the municipality's governing body and includes specific information about the site and financial need.

Additionally, the bill creates a dedicated account within the special revenue fund to manage the grant program's finances, ensuring that funds are appropriated for both grants and administrative costs, with a cap on administrative expenses. The commissioner of employment and economic development is tasked with selecting grant recipients based on financial need and public safety concerns, and is required to report to the legislature annually on the use of grant funds. The bill appropriates $2,246,000 for the program for both fiscal years 2026 and 2027.