[ST. PAUL, MN] – Today, Lieutenant Governor Peggy Flanagan and Minnesota Department of Employment and Economic Development (DEED) Commissioner Steve Grove visited the Cultivate Mankato Child Center to announce the recipients of Child Care Economic Development Grants. DEED awarded a total of $727,500 to 11 organizations throughout Minnesota to increase families’ access to quality child care.

“Too many families, particularly in Greater Minnesota, have no way to access child care that fits their needs,” said Lt. Governor Flanagan. “We need nearly 80,000 additional child care slots statewide to meet Minnesota families’ needs. That’s why we’re making critical investments across the state to ensure all families can access quality child care.”

“Quality child care is vital to growing our workforce and increasing our economic prosperity in Minnesota,” said Commissioner Grove. “These investments give Minnesotans the ability to be active participants in the workforce, entrepreneurs the capital to create new child care businesses that serve their community, and employers the ability to draw much-needed workers to their businesses.”

The community organizations receiving the grants will use the funds to help grow the capacity of existing child care providers or to encourage the startup of new child care businesses within their area. Grant funds can be used for staff training, facility modifications or improvements required for licensing, assistance with licensing or other regulatory requirements, and child care equipment from furniture to playground materials.

DEED’s child care grants are one way the State of Minnesota is working to address the state’s child care shortage, in partnership with local and regional community organizations and the private sector. Ensuring Minnesota families have access to quality child care will require a concerted effort, including increased investment in child care workforce development, increased wages for child care workers and increased funding to help low-income families afford quality child care.

The State Fiscal Year (SFY) 2020 Child Care Economic Development Grants are expected to create child care openings to serve 2,300 more children. A total of 75% of SFY 2020 funding is going to projects in Greater Minnesota.

SFY 2020 Minnesota Child Care Economic Development Grant Recipients
Centro Tyrone Guzman , Minneapolis, $85,000
Northland Foundation , Duluth, $85,000
Northwest Minnesota Foundation , Bemidji, $85,000
Think Small , St. Paul, $85,000
Lakes and Pines Community Action , Mora, $75,000
Becker County , Becker County, $60,000
City of New York Mills , New York Mills, $60,000
Kandiyohi County Area Family YMCA , Willmar, $50,000
Southern Minnesota Initiative Foundation , Owatonna, $50,000
West Central Initiative , Fergus Falls, $50,000
Perspectives, Inc. , St. Louis Park, $42,500

Over the course of two previous rounds of Child Care Economic Development Grants, a total of $1 million in grants were awarded. To date, these grants have helped more than 160 existing and more than 80 new child care providers expand access to quality care, resulting in 2,131 additional child care slots available to Minnesota families.

About the Minnesota Department of Employment and Economic Development
DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more information about the agency and its services visit the DEED website or follow DEED on Twitter .