This bill mandates a rail corridor service analysis for the development of passenger rail services connecting St. Paul to Fargo, North Dakota, and St. Paul to Kansas City, Missouri, with additional stops in Northfield, Albert Lea, and Des Moines, Iowa. 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. Upon receiving the necessary federal development funds, the commissioner must complete all initial 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 passenger rail projects, including state matching funds for federal grants, planning and development costs, and grants to local governments for related activities. This funding is designated for specific tasks such as project cost estimates, alternatives analysis, preliminary engineering, environmental analysis, benefit-cost analysis, and economic impact analysis. The appropriation is a one-time allocation available until June 30, 2028, and is intended solely for the Minnesota share of project costs.