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Gov. Tim Walz on Thursday announced over $6 million in new grants to expand access to child care for working families throughout Minnesota. The new grants follow record funding announced in May, and are expected to create thousands of new child care slots.

“Having access to affordable and reliable child care is what allows new parents to get to work. Investments like this help not only that parent, but their employer, their community, and our economy as a whole,” Walz said. “These new grants will create thousands of new child care slots and expand support for middle-class families across Minnesota.”

“Through historic child care investments, we’re nurturing our children, combating long-standing workforce inequities, maintaining a competitive economy, and building a strong state. With this work we’re taking major strides toward our goal of making Minnesota the best state in the nation for children,” said Lt. Gov. Peggy Flanagan. “When we invest in the needs of children and families, we’re building a strong foundation for generations to come.”

The Department of Employment and Economic Development (DEED) will accept proposals for Child Care Economic Development grants through Oct. 31.
Grant awards of up to $600,000 can be used for child care business start-up, expansion or retention, provider training, facility modifications, employee retention, improvements required for licensing, and assistance with licensing and other regulatory requirements. At least half of the available grant funds will go to communities located outside the seven-county Twin Cities metropolitan area. DEED will also award up to $500,000 to a nonprofit to administer sub-grants for individual child care providers and centers seeking improvement funding for state licensing requirements.

“Child care remains a critical need in communities across the state. DEED’s Office of Child Care Community Partnerships helps child care businesses statewide access the support they need to succeed,” said DEED Commissioner Matt Varilek. “This grant programs helps to create more child care slots and provide families with better access to high-quality, affordable child care that not only supports their economic stability, but also their children’s development.”

The previous grant round funded numerous community-driven programs that leveraged local resources to design and implement solutions that are unique to the applicant’s area and the families they serve, said Director of Child Care Community Partnerships Tammy Wickstrom.

“We’re excited to see the creativity grow as child care providers and community leaders collaborate on solutions for their local needs and look to other Minnesota communities for best practice ideas,” Wickstrom said.

Earlier this year, DEED awarded $6.2 million to 21 organizations that are expected to increase child care program capacity by 2,241 slots. Since 2017, DEED has issued more than $12.7 million in Child Care Economic Development grants to 77 local governments and nonprofit organizations across the state, helping create up to 11,541 child care slots.