This bill establishes a one-time emergency rental assistance aid program for counties and Tribal governments in Minnesota, appropriating $40 million for fiscal year 2026. The aid is intended to support eligible households facing financial hardship, defined as those with incomes at or below 200% of federal poverty guidelines who are at risk of housing instability. The bill outlines the distribution of funds, requiring counties and Tribal governments to use 95% of the aid for direct rental assistance and 5% for compliance and fraud prevention. It also mandates that any unspent funds be returned to the commissioner of revenue for cancellation to the general fund.

Additionally, the bill temporarily extends the time period for tenants to correct rent delinquency before eviction proceedings can commence, allowing landlords to initiate eviction actions after 30 days of notice. It includes provisions for data privacy regarding applicants and ensures that emergency rental assistance will not be counted as income for public assistance eligibility. The bill requires regular reporting from counties and Tribal governments on the distribution and use of the funds, as well as a final report from the commissioner to the legislative auditor.