The Minnesota Department of Employment and Economic Development (DEED) has announced that over $1.4 million in child care economic development grants have been awarded to 11 programs and organizations around the state. The grants are projected to support the creation of more than 1,100 new child care slots. More than 80% of the awarded funds will go toward programs in Greater Minnesota. The program, administered by DEED’s Office of Child Care, reflects the Walz-Flanagan Administration’s commitment to making Minnesota the best state to raise a family and coordinates the efforts of state government, communities, businesses, and nonprofit organizations working to provide child care.
“Affordable, reliable child care is essential for a thriving economy,” said DEED Commissioner Matt Varilek. These grants support working families by ensuring Minnesota parents are able to work, knowing their child is well cared for by some of the best caregivers in the nation. We’re also helping employers retain talent and working together to establish the foundation for long-term economic vitality.”
DEED’s Child Care Economic Development Grant program provides funding to organizations and communities to invest in new or expanding child care businesses, including facility improvements, worker training, recruitment and retention, licensing, and other strategies to reduce the child care shortage.
Carla Vita, DEED Director of Child Care and Community Services, and DEED program staff members completed in-person visits and meetings with all awarded programs and organizations.
“New child care openings don’t just represent a child who is receiving professional care,” said Vita. “They represent parents who can get to work, a means to combat workforce inequities and a reason Minnesota is one of the best states in the nation to raise a family. By investing in child care, we are investing in our state’s workforce and families for generations to come.”
Since the office’s inception in July 2023, DEED has awarded over $13 million in grants to 56 organizations to fund child care startups or business expansions, resulting in over 4,000 new child care slots. SmileHub recently ranked Minnesota as a top state for children, in part due to the availability and credibility of its child care providers.
The following organizations were awarded Child Care Economic Development Grants in this funding round:
- City of Melrose – $100,000
- City of Windom – $100,000
- Discovery Place (Thief River Falls) – $51,500
- Excell Academy for Higher Learning (Brooklyn Park) – $100,000
- Lakes Area Enrichment Center (Starbuck) – $100,000
- Northfield Healthy Community Initiative (Northfield) – $200,000
- Northland Foundation (Duluth) – $200,000
- Northwest Minnesota Foundation (Bemidji) – $200,000
- Prairie Pines Child Care Center (Fosston) – $73,333
- WomenVenture (St. Paul) – $200,000
- Wonder World Preschool, Inc. (Slayton) – $100,000
