This bill establishes new standards for the use of competitive grants issued by the Department of Veterans Affairs in Minnesota. It introduces a new section in the Minnesota Statutes, chapter 196, which outlines definitions relevant to the grants, eligibility criteria for grantees, limitations on the use of grant money, and a scoring system for grant applications. Eligible grantees must be Minnesota-based nonprofit organizations with a minimum of five years of operation, in good standing with the Attorney General, and have a current federal tax form 990 on file. The bill specifies that grant funds can only be used to provide services to Minnesota veterans and their immediate family members, prioritizing those with health disabilities if resources are limited.

Additionally, the bill mandates that grantees submit annual reports starting in 2027, detailing the purpose of the grant, the amount awarded, and the number of individuals served, among other metrics. The commissioner of veterans affairs is also required to compile and submit a summary report to legislative committees each year. The bill allows the commissioner to withhold grant funds if fraud or misconduct is detected and permits the retention of up to five percent of the appropriated funds for administrative costs. Overall, the legislation aims to enhance accountability and effectiveness in the distribution of grants to support veterans and their families.