This bill proposes the establishment of a grant program aimed at supporting counties, municipalities, and townships in Minnesota as they plan and implement regional drinking water systems. It introduces a new section titled "Drinking Water Regionalization Planning and Assistance Grants," which outlines eligibility criteria for grant recipients, eligible expenses for the use of grant funds, and the administration of the grant process. Specifically, the bill mandates that grant funds be utilized for various planning activities, including feasibility studies and community engagement efforts, and sets a maximum grant amount of $300,000 per recipient per year, with a requirement for matching funds of at least 25% of the total grant amount.

Additionally, the bill requires the commissioner of health to develop an application process and selection criteria by November 1, 2026, prioritizing projects that address critical issues such as aging infrastructure and water quality. A report summarizing the grants awarded and the progress of funded projects must be submitted to legislative committees by January 15, 2027. The bill also appropriates $1,000,000 from the general fund for fiscal year 2027 to support these grants, with the funds available until June 30, 2027.