Child Care Economic Development

The Department of Employment and Economic Development (DEED), through its Economic Development Division, awards grants to be used to implement solutions to reduce the child care shortage in the state.

Overview

2023 Laws of Minnesota, Regular Session, Chapter 53, Article 20 Section 2, Subd. 2 (n) authorizes $6,500,000 in SFY 2024 and $6,500,000 in SFY 2024 for grants to local communities to increase the supply of quality child care providers to support economic development.

A total of $6.2 million will be available for grants through an initial round of funding. A second round of funding for SFY 2025 funds will be available Fall of 2024.

At least 50% of the funds must go to communities outside the metropolitan area (as defined under Minn. Stat. 473.121 subd. 2. Unless otherwise exempted recipients must obtain a 50% non-state match to grant funds in either cash or in-kind contributions.

Interested parties may request up to $600,000 in state funds for multi-location projects. Single location projects can request up to $300,000. Proposal budgets must include the amount and source of matching funds.

Funding will be allocated through a competitive process with a review by a committee of DEED staff, managers and external reviewers. The Commissioner of DEED reserves the right to change the amount awarded to any selected project. Award decisions are final and not subject to appeal. If selected, you may only incur eligible expenses when the grant contract agreement is fully executed by the awardee and DEED and the grant has reached its start date.

Eligible Recipients
Funding Map

Eligible Recipients

This funding is for grants to local communities to increase the number of quality childcare providers to support economic development. Eligible recipients include a: public entity, Tribal Nation, community service agency, or 501(c)(3) having experience in one or more of the following: the operation of, planning for, financing of, advocacy for, or advancement of the delivery of childcare services.

Individual childcare programs, both family and center-based, seeking funds to establish new operations or expanding existing operations are encouraged to partner on their funding request with local or regional organizations with experience in the planning and/or financing of childcare facilities and programs. The lead applicant will act as the fiscal host for funding.

Proposals must identify a lead applicant. The applicant must be a local government unit or 501(c)(3) non-profit organization having experience in one or more of the following: the operation of, planning for, financing of, advocacy for, or advancement of the delivery of child care services.

The lead applicant must be located in the community that is the beneficiary of the funds or is partnering with one or more non-profit organization(s), local government unit or private sector employer located in an eligible community.

Eligible Uses

Grant funds must be used to implement solutions to reduce the child care shortage in the state, including but not limited to the following:
- Funding for child care business start-ups or expansion
- Training
- Facility modifications or improvements required for licensing
- Direct subsidies or incentives to retain employees
- Assistance with licensing and other regulatory requirements
Funding Map

Use this funding map to see where Child Care Economic Development grant projects are located throughout the state and how much each project was awarded.
- Funding Map