Child Care Economic Development Program

The Minnesota Department of Employment and Economic Development (DEED), through its Child Care Community Partnerships Office, is offering grants to reduce the childcare shortage across the state. This program aligns with the broader mission of economic development by ensuring that communities have adequate childcare, which is crucial for workforce participation and overall economic growth. The grants are intended to fund solutions such as childcare business start-ups or expansions, retention of existing programs, training, facility modifications, direct subsidies or incentives for employee retention, and assistance with licensing and regulatory requirements. This one-time funding is designed to create sustainable investments in human and physical capital that will lead to a lasting increase in childcare supply. The target beneficiaries of this grant program are local communities, including public entities, Tribal Nations, community service agencies, and 501(c)(3) non-profits with experience in childcare services. Individual for-profit childcare programs, both family and center-based, are encouraged to partner with these eligible organizations. The ultimate goal is to increase the number of quality childcare providers, thereby supporting economic development and addressing the documented shortage of childcare providers in various project areas. The impact goals are centered around creating new childcare capacity and improving existing facilities to meet licensing requirements. Priority will be given to projects that make sustainable one-time investments resulting in new childcare supply, are located in communities with documented childcare shortages, demonstrate collaborations among private-sector employers, public, and non-profit organizations, and can complete the project within the grant timeline. The program emphasizes both human and physical capital investments, with a significant portion of funds earmarked for communities outside the seven-county metropolitan area to ensure equitable distribution of resources. A specific focus is also placed on awarding at least one grant to a 501(c)3 non-profit to administer facility improvement sub-grants to childcare providers, with a maximum of $7,500 per sub-grant to assist in meeting licensing requirements. Expected outcomes include a measurable increase in childcare capacity across the state, particularly in underserved areas. This will be achieved through the establishment of new childcare facilities, the expansion of existing ones, and improvements to facilities that enhance their ability to meet licensing standards. The measurable results will be evident in the number of new childcare slots created, the retention of existing childcare programs, and the improved quality and safety of childcare environments. The strategic priority is to address the childcare shortage as a critical component of economic development, fostering a supportive environment for working families and contributing to the state's overall economic well-being through targeted, one-time investments.