This bill mandates a rail corridor service analysis for the development of passenger rail service to Fargo, North Dakota, and Kansas City, Missouri. The commissioner of transportation is required to apply for federal funding through the Federal Railroad Administration's Corridor Identification and Development Program to facilitate the planning and development of these intercity passenger rail corridors. Specifically, the bill outlines two routes: one extending from St. Paul to Fargo and another establishing new service from St. Paul to Kansas City, which will also serve Northfield, Albert Lea, and Des Moines, Iowa. Upon securing federal development 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 political subdivisions for activities related to the passenger rail implementation. The appropriation is designated as a one-time allocation, available until June 30, 2028, and is specifically for the Minnesota share of project costs. The bill is set to take effect the day after its final enactment.