The bill proposes the establishment of construction mitigation grants aimed at supporting small businesses affected by construction projects on Arcade Street and East 7th Street in St. Paul. The commissioner of employment and economic development, in collaboration with the commissioner of transportation, will award grants to a community-based development organization that serves small businesses in the area. The bill defines "qualified business" as those employing no more than 25 employees and experiencing significant impacts due to the construction, such as impaired road access or visibility. The criteria for grant awards will include factors like revenue decline, construction duration, and traffic disruption.

Additionally, the bill appropriates $2,200,000 from the general fund for these grants in fiscal year 2026, allowing the commissioner to retain up to 2% for administrative costs. A report detailing the grants awarded, including business names and amounts, must be submitted annually by January 15 until the project is completed. This initiative aims to mitigate the economic impact of construction on local businesses and ensure their sustainability during the project period.