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 significant tax stress. The program will offer grants covering 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 "tax-stressed city" and "qualifying property," and outlines the application process, which requires approval from the municipality's governing body and includes specific information about the site and the financial need for assistance.

Additionally, the bill creates a dedicated account within the special revenue fund to manage the grant program's finances, with an appropriation of $2,246,000 for both fiscal years 2026 and 2027. The commissioner of employment and economic development is tasked with administering the program and must report annually to the legislature on the use of grant funds. The bill emphasizes prioritizing applications based on financial need and the level of public safety threat posed by the vacant structures.