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Child Care Economic Development

Office of Child Care Community Partnership

The Department of Employment and Economic Development (DEED), through its Economic Development Division, awards grants to be used to implement solutions to reduce the child care shortage in the state.


2023 Laws of Minnesota, Regular Session, Chap. 53, Art. 20 Sec. 2 subd. 2(n) authorizes $6,500,000 in SFY 2024 and $6,500,000 in SFY 2024 for grants to local communities to increase the supply of quality child care providers to support economic development.

A total of $6.2 million will be available for grants through an initial round of funding. A second round of funding for SFY 2025 funds will be available Fall of 2024.

At least 50% of the funds must go to communities outside the metropolitan area (as defined under Minn. Stat. 473.121 subd. 2. Unless otherwise exempted recipients must obtain a 50% non-state match to grant funds in either cash or in-kind contributions.

Interested parties may request up to $600,000 in state funds for multi-location projects. Single location projects can request up to $300,000. Proposal budgets must include the amount and source of matching funds.

Funding will be allocated through a competitive process with a review by a committee of DEED staff, managers and external reviewers. The Commissioner of DEED reserves the right to change the amount awarded to any selected project. Award decisions are final and not subject to appeal. If selected, you may only incur eligible expenses when the grant contract agreement is fully executed by the awardee and DEED and the grant has reached its start date.

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