The bill establishes the "Animal Welfare Program" aimed at providing funding for projects that enhance the welfare of domestic cats and dogs. Starting July 1, 2028, the program will allow the Department of Finance and Administration to award grants to municipalities, counties, or eligible entities for various initiatives, including animal shelter repairs, spay and neuter services, and education on animal welfare. Applicants must submit detailed proposals, and the department will evaluate these through a competitive review process. Additionally, the bill mandates that the department report annually on the program's funded projects and their outcomes.

To support this initiative, the bill creates the "Animal Welfare Trust Fund," which will consist of various financial contributions and will be managed by the state investment officer. A portion of the fund's income will be distributed annually to the newly established "Animal Welfare Program Fund," which will be used to administer the program. The bill also includes a one-time transfer of $10 million from the general fund to the animal welfare trust fund to kickstart the program.