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 a rent obligation, income at or below 200% of federal poverty guidelines, and at risk of housing instability. The bill outlines the distribution of funds, requiring counties to use the aid for emergency rental assistance and prioritizing households with minors. It also mandates that any unspent funds be returned to the commissioner for cancellation to the general fund.

Additionally, the bill includes provisions for the return of unused funds from a previous tax-forfeited settlement appropriation and temporarily extends the time period for tenants to correct rent delinquency before eviction proceedings can commence. The commissioner of revenue is tasked with certifying the maximum amount of assistance each eligible household may receive, and counties and Tribal governments must report on the distribution of aid within specified timeframes. The bill emphasizes data privacy for applicants and ensures that the emergency rental assistance will not be counted as income for public assistance eligibility.