The bill establishes the Political Subdivision Consolidation Incentive Grant Pilot Program, which will be administered by the Secretary of State to provide financial grants to political subdivisions that undergo mergers. A "merger" is defined as the process where one political subdivision absorbs another or multiple subdivisions combine to form a new entity, excluding joint districts. Eligible entities for grants include townships and municipal corporations that merge under specified sections of the Revised Code, as well as other political subdivisions of similar nature. The grants will be awarded on a first-come, first-serve basis, with specific formulas determining the grant amounts based on population and budget comparisons, subject to maximum limits of $2.5 million for townships and municipal corporations and $1 million for other political subdivisions.

The bill appropriates $25 million from the General Revenue Fund to support the grant program, with provisions for reappropriating any unspent funds into the following fiscal year. The Secretary of State is tasked with outlining the application process for political subdivisions seeking grants, which can only be applied for after the merger takes effect. The legislation aims to incentivize the consolidation of political subdivisions to enhance efficiency and reduce costs in local governance.