This bill appropriates funds to the Minnesota Housing Finance Agency for the economic development and housing challenge program. Specifically, it allocates $22,925,000 for fiscal year 2026 and $12,925,000 for fiscal year 2027 from the general fund. These funds are designated for the economic development and housing challenge program as well as low- and moderate-income housing programs as outlined in Minnesota Statutes.

Additionally, the bill stipulates that $1,208,000 in fiscal year 2026 and each subsequent year will be exclusively allocated for housing projects aimed at American Indians during the first 11 months of the fiscal year. If these funds are not committed to such projects within the annual funding request processes, they may then be used for any eligible activities under the relevant Minnesota Statutes.