[ST. PAUL, MN] – Governor Tim Walz today visited Ely, Minnesota, to highlight the child care plan in the One Minnesota Budget released in January. Governor Walz visited the Ely Head Start center to discuss the Governor and Lieutenant Governor’s plan, which would increase child care access and affordability and provide middle class families with up to $10,500 to help pay for child care. Governor Walz was joined by Iron Range Resources and Rehabilitation Board Commissioner Ida Rukavina and Senator Grant Hauschild. The Governor also toured Minnesota North College to see proposed improvements that would be funded by the Governor’s Infrastructure Plan and visited a manufacturing company in Tower.

“Child care is the backbone of the workforce in Ely and in communities across the state. When we invest in our child care providers, we invest in our families, our economy, and our future,” said Governor Walz. “Whether you live on the Iron Range or in the metro, our child care plan addresses a wide variety of needs to lower costs for families by thousands, drive economic and workforce development, and make Minnesota the best place for kids to grow up.”

“Child care providers keep our economy running, but their care is increasingly falling out of reach as child care costs rise and availability decreases. We’re taking action at the Legislature to address this, and Governor Walz has been a key partner in that work.” said Senator Hauschild. “I want to thank him for joining me in Ely this morning to hear directly from child care providers about the issues they’re facing. When it comes to making Minnesota the best state in the nation to raise a family, the governor and I are in full agreement. I’m committed to continuing this critical work in Saint Paul to improve child care affordability and accessibility for all Minnesota families.”

Child Care Plan: Expand Access to Child Care and Early Learning

To reduce child care expenses and provide economic relief to middle class and lower income families, Governor Walz and Lieutenant Governor Flanagan propose $539 million in tax credits in 2024-2025 and a $547 million in tax credits in 2026-2027 to expand the Child and Dependent Care Credit, reducing costs for 100,000 Minnesota households. This child care plan will allow families making under $200,000 with one child to receive up to $4,000 a year for child care costs. Families with two children could receive up to $8,000, and families with three children could receive up to $10,500. Governor Walz and Lieutenant Governor Flanagan also propose expanding public pre-K seats for nearly 25,000 eligible children, investing in early learning scholarships, and improving child care access for Minnesota families by increasing child care assistance payment rates. Finally, the One Minnesota Budget addresses Minnesota’s child care shortage by increasing staff compensation and supporting providers starting child care businesses.

Child Care Plan: Support Working Families

At a time when more Minnesotans are accessing food nutrition programs, the One Minnesota Budget also invests in the Minnesota Food Shelf Program and emergency food and distribution facilities across Minnesota, increases outreach for the Supplemental Nutrition Assistance Program, and includes new funding to support food security among tribal nations and American Indian communities. Additionally, the Walz-Flanagan budget proposes a grant program that allows colleges and universities to provide parents or expectant parents with the support they need to complete their education.

Child Care Plan: Department of Employment and Economic Development (DEED) Grants

Governor Walz and Lieutenant Governor Flanagan recognize that access to child care is an economic and workforce development issue across the state. The One Minnesota Budget includes a proposal to create and Office of Child Care and Community Partnerships at DEED to establish a central force for efforts to advance child care. The office would administer a proposed $18 million over four years in DEED Child Care Economic Development Grants to support child care and economic development in Greater Minnesota.

Child Care Plan: DEED Office of Child Care and Community Partnerships

Recognizing that access to child care is an economic and workforce development issue across the state, Governor Walz and Lieutenant Governor Flanagan recommend creating an Office of Child Care and Community Partnerships at DEED to establish a central force for efforts in recognizing access to child care as an economic and workforce development issue across the state. The office would administer DEED Child Care Economic Development Grants and the Governor proposes investing $18 million more over four years in these funds to support child care economic development activities in Greater Minnesota, which will assist child care providers, create much-needed new child care slots, and increase the capacity and quality of child care across the state.

In addition to improving child care, Governor Walz and Lieutenant Governor Flanagan are also working to eliminate child poverty. Shown to reduce child poverty and improve outcomes for families at every stage of life, Governor Walz and Lieutenant Governor Flanagan recommend a nation-leading Child Tax Credit, providing lower income families $1,000 per child with a maximum credit of $3,000. This Child Tax Credit alone would cut child poverty by 25%. The proposal would result in $1.1 billion in tax cuts in 2024-2025 and $1.2 billion in 2026-2027.