(1) The Panhandle Improvement Project Cash Fund is created. The fund terminates on January 1, 2027. The fund shall be administered by the Department of Economic Development. The fund shall consist of funds transferred by the Legislature. Transfers may be made from the Panhandle Improvement Project Cash Fund to the Animal Damage Control Cash Fund at the direction of the Legislature. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

(2) The fund shall be used for grants for the following purposes:

(a) A grant to a county in the third congressional district that owns and operates the county fairgrounds for renovation to the fairgrounds. A grant under this subdivision shall be limited to nine hundred ninety-five thousand dollars; and

(b) A grant to a village with a population of less than ten persons for renovation to a community facility that serves the surrounding rural area. A grant under this subdivision shall be limited to five thousand dollars.

(3) The Department of Economic Development shall develop criteria for grant applications pursuant to this section.

(4) The State Treasurer shall transfer any unobligated money that remains in the Panhandle Improvement Project Cash Fund to the Animal Damage Control Cash Fund as soon as administratively practicable on or after July 31, 2026.