On Thursday, February 6, Minnesota Governor Tim Walz announced $6.1 million in grants to expand access to child care statewide. Minnesota’s Department of Employment and Economic Development (DEED) awarded 25 organizations Child Care Economic Development Grants, which are expected to expand childcare capacity by 1,400 slots statewide. Eighty-four percent of the grants, $5.1 million, will go towards increasing childcare availability in Greater Minnesota, creating 1,337 slots.
Governor Walz announced the grants, saying, “These grants are creating opportunities for childcare providers, expanding high-quality, affordable childcare, and growing our economy.”
Cook County Public Health and Human Services (PHHS) will receive $385,178. This grant directly benefits the Cook County business community, enhancing the childcare services it relies on.
DEED’s Child Care Economic Development Grant program, a crucial step in addressing the childcare shortage, funds communities to invest in new or expanding childcare businesses, including facility improvements, worker training, attraction, retention, licensing, and other strategies.
“Secure child care is 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.”
Since the grant program started in July 2023, DEED has awarded $12 million to 45 organizations to fund childcare startups or business expansions, resulting in over 3,500 new childcare slots.
According to Childcare Aware of MN, a statewide organization working through partnerships to build an equitable, high-quality early care and education system, the weekly market rate for childcare in Greater Minnesota ranges from $140 to $300 per child.
The U.S. Department of Health and Human Services recommends that families spend no more than 7% of their annual income on child care, highlighting the urgent significance of this issue for families, children, and the economy.
The current grant includes funding for five initiatives that include recruiting childcare workers, helping childcare providers receive continuing education toward a Child Development Associate credential, subsidies for new or expanding childcare businesses to reach their capacity, childcare providers’ mentorship meetings, and to create a shared substitute provider pool for local, licensed providers to reduce closures due to staff absences
Other childcare grant recipients in the North Shore region include Arrowhead Economic Opportunity Agency, which received $240,000; Duluth Area Family YMCA, $480,000; and the Northland Foundation, $240,000.
