The bill proposes the cancellation of a previous appropriation of $117,000,000 designated for the Minneapolis-Duluth Northern Lights Express intercity passenger rail project, as stated in Laws 2023, chapter 68, article 1, section 2, subdivision 2, paragraph (d). This cancellation will take effect on the day following the final enactment of the bill.

In place of the canceled funds, the bill appropriates $117,000,000 from the general fund for the fiscal year 2026 to the commissioner of transportation. This funding is earmarked for the expansion of U.S. Highway 169 from a two-lane to a four-lane divided highway between Taconite and Pengilly. The appropriation covers various stages of the project, including predesign, design, engineering, environmental analysis and remediation, property acquisition, and construction. This one-time appropriation will remain available until June 30, 2029, and will also take effect the day following final enactment.