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Child Care Stabilization Grants

Minnesota child care providers were hard hit by low enrollment and higher costs throughout the COVID-19 pandemic. In response, the Minnesota Department of Human Services (DHS) is administering several grant programs to help stabilize the child care industry in Minnesota. These grant programs are described below. 

Resources and Communication

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Active Grants

Child Care Stabilization Base Grants 

(September 2021 through June 2023)

The department's Child Care Stabilization Base Grants are available to all eligible child care providers  for monthly grant awards. To be eligible for a Base Grant, providers must be licensed, certified or registered, in good standing with the Minnesota Department of Human Services or their tribe, and be open, operating and serving children during the funding period, in addition to other requirements. At the start of each monthly application period, eligible providers receive an email with a link to a personalized application form. 70% of these funds must be used to increase compensation for staff regularly caring for children. Learn more about  Base Grants by reading the Base Grants and Base Grant Frequently Asked Questions (FAQs).

Financial Hardship Grants (active January 2022)

Financial Hardship Grants are available to child care programs experiencing extreme financial hardship. Specific grant amounts, eligibility criteria and application timeline are available on the Financial Hardship Grants page

Child Care Stabilization Grants Timeline Table: January - June 2022

Grant Funding Period Application period
January Base Grant & One-Time Supplemental Stabilization Grant Dec. 15, 2021 – Jan. 14, 2022 Jan. 18, 2022 – Jan. 25, 2022 at 4 p.m.
January Financial Hardship Grant Oct. 1, 2021 – Dec. 31, 2021 Jan. 26, 2022 – Feb. 9, 2022 at 4 p.m.
February Base Grant Jan. 15, 2022 – Feb. 14, 2022 Feb. 15, 2022 – Feb. 22, 2022 at 4 p.m.
February Financial Hardship Grant Nov. 1, 2021 – Jan. 31, 2022 Feb. 23, 2022 - Mar. 9, 2022 at 4 p.m.
March Base Grant Feb. 15, 2022 – Mar. 14, 2022 Mar. 15, 2022 – Mar. 22, 2022 4 p.m.
March Financial Hardship Grant Dec. 1, 2021– Feb. 28, 2022 Mar. 23, 2022 - Apr. 6, 2022 at 4 p.m.
April Base Grant Mar. 15, 2022 – Apr. 14, 2022 Apr. 18, 2022 – Apr. 25, 2022 at 4 p.m.
April Financial Hardship Grant Jan 1, 2022– Mar. 31, 2022 Apr. 26, 2022 - May 10, 2022 at 4 p.m.
May Base Grant Apr. 15, 2022 – May 14, 2022 May 16, 2022 – May 23, 2022 at 4 p.m.
May Financial Hardship Grant Feb 1, 2022– Apr. 30, 2022 May 24, 2022 - June 7, 2022 at 4 p.m.
June Base Grant  May 15, 2022 – Jun. 14, 2022 Jun. 15, 2022 – Jun. 22, 2022 at 4 p.m.
June Financial Hardship Grant Mar. 1, 2022– May 31, 2022 June 23, 2022 - July 7, 2022 at 4 p.m.
Funding period:  The period when child care providers must meet all state and federal eligibility requirements for a grant.
Application period:  The period when child care providers may apply to a grant.

Inactive Past Grants

Child Care Stabilization Transition Grants: June and July 2021
Transition Grants were designed to allow time to finalize the specifics of the full Child Care Stabilization Grant Program and still provide support to eligible providers during the June and July monthly funding periods (paid in July and August). These grants have now concluded.
 
One-Time Supplemental Stabilization Grants: January 2022
In December 2021, the Minnesota Governor’s Office and the department prioritized $20 million from the COVID-19 Flexible Response Account for Minnesota’s child care providers in response to rising new COVID-19 case totals in Minnesota. These funds, called One-Time Supplemental Stabilization Grants, are part of Minnesota’s share of the American Rescue Plan Act funding. Minnesota child care providers were able to apply for these grants as part of their January 2022 Child Care Stabilization Base Grant application. 
 

All $20 million of the One-Time Supplemental Stabilization Grant funds was awarded in January 2022. The Child Care Stabilization Base Grant’s requirement to use 70% of funds to increase compensation for staff regularly caring for children did not apply to One-Time Supplemental Stabilization Grants. Legal non-licensed providers were not eligible for One-Time Supplemental Stabilization Grants. Learn more about this grant at One-time Supplemental Stabilization Grants.

Legislative background

The American Rescue Plan Act was signed into law in March 2021, and it provided Minnesota with additional funds designed to help stabilize the child care industry as the state continues to recover from the COVID-19 pandemic. These federal funds have specific rules and requirements that must be followed. 

At the end of June 2021, the Minnesota Legislature created Minnesota’s Child Care Stabilization Grant Program, which began in June 2021 and will last until June 2023.

Frequently Asked Questions (FAQs)

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