Funding expected to create over 1,400 new child care slots

ST. PAUL, MN - Governor Tim Walz today announced $6.1 million in grants to expand access to child care across the state. The Minnesota Department of Employment and Economic Development (DEED) has awarded 25 organizations with Child Care Economic Development Grants, expected to expand child care capacity by 1,400 slots statewide.

“Affordable, reliable child care is essential for a thriving economy - it removes the barriers that prevent parents from entering the workforce, and makes life easier and more affordable for families,” said Governor Walz. “These grants are creating opportunities for child care providers, expanding high-quality, affordable childcare, and growing our economy.”

“Access to affordable, reliable child care gives families and caregivers options and peace of mind,” said Lieutenant Governor Flanagan. “Child care investments benefit businesses, families, and our economy. These new grants are helping us create a state where all families can thrive, and all children are set up for success from day one.”

DEED's Child Care Economic Development Grant program provides funding to communities to invest in new or expanding child care businesses, including facility improvements, worker training, attraction, retention and licensing, and other strategies to reduce the child care shortage. The program, administered by DEED’s Office of Child Care Community Partnerships, coordinates the efforts of state government, communities, businesses, and non-profit organizations that are working to provide child care.

Of the funds awarded, 84%, or $5.1 million, will go towards increasing child care availability in Greater Minnesota, creating 1,337 slots.

“Secure child care is a not only important for parents’ peace of mind, but is a crucial aspect of maintaining a healthy and thriving economy,” said DEED Commissioner Matt Varilek. “As the demand for more child care availability continues to increase, public investments in this sector take on even greater importance. Today’s Child Care Economic Development Grants are one of the ways we’re working with partners around the state to serve working families.”

"Access to workers remains the most difficult challenge facing economic growth in the greater Bemidji region. It's critical we increase workforce participation by reducing barriers to work for our community members - first among them is childcare. This grant will directly increase our economic growth and expansion in both the Bemidji area and the Red Lake Nation," said Dave Hengel, Executive Director of Greater Bemidji, Inc., a grantee that will use funding to support three child care expansions and create a resource center for providers in its region.

“Thanks to DEED’s funding support, Latina family childcare providers can help solve the dire shortage of childcare spaces in Minnesota,” said Ruby Azurdia-Lee, President and CEO of Comunidades Latinas Unidas En Servicio (CLUES). “CLUES’ East Side Childcare Business Incubator and Family Wellness Center will provide training, technical assistance, and classrooms to support Latina childcare providers in launching their own small businesses or expanding high quality care in their own homes. This funding will create up to 56 new childcare slots in a high poverty neighborhood and pilot a model of culturally responsive childcare business development that can be replicated and scaled in urban and rural communities throughout Minnesota, ultimately benefiting thousands of families across the state.”

Since the inception of the office in July 2023, DEED has awarded $12 million in grants to 45 organizations to fund child care startups or business expansions, resulting in over 3,500 new child care slots. SmileHub recently ranked Minnesota a top state for children, in part because of the availability and credibility of the state’s child care centers.

The following organizations were awarded Child Care Economic Development Grants in this funding round:

• Arrowhead Economic Opportunity Agency - $240,000
• Becker County - $120,000
• Brainerd Family YMCA - $97,5000
• Catholic Charities Twin Cities - $240,000
• City of Hutchinson - $40,000
• City of Wadena - $195,000
• Comunidades Latinas Unidas En Servicio (CLUES) - $300,000
• Cook County PHHS - $385,178
• Duluth Area Family YMCA - $480,000
• God’s Treasures Childcare Learning Center - $240,000
• Greater Bemidji, Inc. - $575,000
• Heartland Lakes Development Commission - $100,000
• Hendricks Community Hospital Association - $159,000
• Hmong American Partnership - $240,000
• ISO 482- Little Falls Community Schools - $240,000
• Kandiyohi County and City of Willmar EDC - $178,500
• Lil Chompers Child Care Inc. - $240,000
• Mapleton Economic Development Authority - $175,120
• Nobles County Community Service Agency - $480,000
• Northland Foundation - $240,000
• Northwest Minnesota Foundation - $134,530
• Otter Tail County - $240,000
• Renville County - $345,000
• Warroad Community Childcare Center - $240,000
• WomenVenture - $240,000