The Bihar Cabinet has approved a $500 million loan from the World Bank to strengthen the state's economy and develop integrated urban economic regions, with funds aimed at advancing urbanization and building economic and basic infrastructure across cities. The decision was taken on Wednesday, May 7, 2026, during a meeting chaired by Chief Minister Samrat Choudhary.

The cabinet also approved a plan to provide quality artificial intelligence training to members of the Bihar Legislative Assembly and Council, along with government officials and staff, as part of a broader push to position Bihar as a leader in AI adoption. The state has constituted the Bihar Artificial Intelligence Mission to drive implementation, with AI systems expected to improve governance in administration, finance, human resources, agriculture, social welfare, and tourism.

In transport, the government approved the purchase of 400 electric AC buses under the PM E-Bus Sewa Yojana, including 150 for Patna and 50 each for Muzaffarpur, Bhagalpur, Gaya, Darbhanga, and Purnea, with a 12-year operational plan from 2026-27 and a ₹517.16 crore cash gap subsidy sanctioned. The cabinet also agreed to transfer 1.85 acres of state land in Patna to the Airport Authority of India for airport-related infrastructure development.

Other decisions included extending the Bihar Industrial Investment Promotion Package (BIIPP) 2025 until June 30, 2026, approving the Bihar Building (Amendment) Bylaws, 2026 to ease urban construction processes, extending the Seventh State Finance Commission's tenure to September 30, 2026, naming the Sitamarhi Government Medical College after Maa Sita, and sanctioning ₹15,967.03 crore for state road maintenance.

The transport department will begin procurement of electric buses in the coming months, while the World Bank loan will be formally negotiated in the next fiscal quarter; AI training programs are expected to launch by July 2026.