Directs Department of Transportation’s Division of Integrated Mobility (DIM) to create titular grant program. Defines “rural county” (250 or fewer people per square mile), “rural microtransit” (public car or shuttle service in a rural county), and “service operation” (loading/unloading passengers in a rural county). Makes counties, regional councils, and municipalities/regional transit authorities with agreements with rural counties or regional councils eligible for grants.

Provides that grants can be used for (1) rural microtransit systems for commuters during peak hours and must include minimum 20% employer contribution; or (2) general use microtransit during off-peak hours, including on-demand shuttle use for the elderly, families with children, and disabled individuals, prioritizing medical appointments and grocery shopping. Requires grants to include a minimum 50% local match and directs DIM to establish rules for allocating grant funds.

Appropriates $30 million in nonrecurring funds for 2026-27 from the Highway Fund to DIM for the purposes of this act.

Effective July 1, 2026.