This bill establishes a program for construction mitigation grants aimed at supporting 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 provide grants to nonprofit organizations and community development financial institutions to assist qualified businesses that experience significant impacts due to the construction. The bill defines "qualified business" as those employing no more than 25 individuals and facing substantial business impacts, such as impaired road access or visibility, for at least one month.

Additionally, the bill appropriates $2,200,000 from the general fund for these grant awards 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 challenges faced by small businesses during significant infrastructure projects.