The bill mandates a rail corridor service analysis for the development of passenger rail service to Fargo, North Dakota, and Kansas City, Missouri. It requires the commissioner of transportation to apply for federal funding through the Federal Railroad Administration's Corridor Identification and Development Program, as established by the Infrastructure Investment and Jobs Act. The bill outlines two specific routes for development: an extension of service from St. Paul to Fargo and a new service from St. Paul to Kansas City, which will also serve Northfield, Albert Lea, and Des Moines, Iowa. Upon securing federal funds, the commissioner must complete the necessary scoping requirements for both routes.

Additionally, the bill appropriates $1,000,000 from the general fund for fiscal year 2026 to support various aspects of the intercity passenger rail projects. This funding will cover state matching funds for federal grants, planning and development costs, and grants to local governments for related activities such as project cost estimates, environmental analysis, and economic impact assessments. The appropriation is a one-time allocation available until June 30, 2028, specifically for Minnesota's share of project costs.