The bill establishes a program for 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, is tasked with awarding grants to a community-based development organization that serves small businesses in the area. The bill defines "qualified businesses" as those with 25 or fewer employees that experience significant impacts due to construction, such as impaired road access or visibility. The criteria for grant awards include revenue decline, construction duration, proximity to construction, traffic disruption severity, and access issues for pedestrians and cyclists.

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, types, 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 continued operation during the project.