Workforce News

Child Care Economic Development Grants Now Open for Applications

01 September 2021

Funds will provide solutions to reduce child care shortages

St. Paul, Minnesota - Today, the Minnesota Department of Employment and Economic Development (DEED) has launched the latest round of Child Care Economic Development Grants. These grants authorize $5 million over the next two fiscal years for grants to local communities to increase quality child care providers to support economic development across Minnesota. A total of $2.5 million will be available in this first round with a second round of funding being available before June 2022.

DEED is seeking proposals from local governments or nonprofits with experience in the operations, financing, advocacy, or advancement of the delivery of child care services. Qualified parties may request up to $300,000 in state funds for this program.

"We consistently hear that a lack of quality child care is one of the major hurdles preventing the growth of our workforce," said DEED Commissioner Steve Grove. "We're excited these grants will address the child care shortage, helping parents pursue their careers and support their families."

Program funds can be used for child care business startups or expansions, training, facility modifications, direct subsidies or incentives to retain employees, or improvements required for licensing, and assistance with licensing and other regulatory requirements.

Priority will be given to communities that have a documented shortage of child care providers in their proposed project area. The definition of documented shortages may include disparities in access to affordable quality child care among targeted groups including but not limited to rural communities, low-income communities, Black, Indigenous and people of color individuals, persons with disabilities, veterans, and women.

All applications must be received no later than 4:00 p.m. Central Time, on September 30, 2021.

Proposals should be submitted by email to MNSPB.DEED@state.mn.us in a single PDF file. Award recipients will be notified in October 2021.

To learn more about this program, join our upcoming informational webinar:

Tuesday, Sept. 7, 2021 from 11:00 a.m. to 12:30 p.m.
To join the meeting from your smartphone, tablet or computer, click the Microsoft Teams meeting link here or
You can join by phone: 651-395-7448 (Conference ID 615 908 620#)

If you have additional questions, you can submit them by email to MNSBP.DEED@state.mn.us. Please submit questions no later than 4:00 p.m. Central Time, on Sept. 18, 2021.

DEED will post responses to frequently asked questions on DEED's Competitive Grants and Contracts page.

DEED is the state's principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and its services, visit the DEED website or follow us on Twitter.