ST. PAUL – Minnesota Governor Tim Walz announced $6.1 million on Thursday to expand access to child care across the state. The Minnesota Department of Employment and Economic Development (DEED) awarded Child Care Economic Development Grants to 25 organizations, with expectations to increase child care capacity by 1,400 slots statewide.
“Affordable, reliable child care is fundamental for a thriving economy – it removes the barriers preventing parents from entering the workforce and makes life easier and more affordable for families,” Governor Walz said. “These grants are creating opportunities for child care providers, enhancing high-quality, affordable childcare, and contributing to our economic growth.”
DEED’s Child Care Economic Development Grant program aims to provide communities with funding to invest in new or improved child care facilities, workforce training, attraction and retention strategies, licensing, and other methods to alleviate the prevalent child care shortage.
Among the recipients of these grants are the Northwest Minnesota Foundation, which received $134,530, and Greater Bemidji, Inc., awarded $575,000. “Access to workers remains the most significant challenge facing economic growth in the greater Bemidji region,” said Dave Hengel, Executive Director of Greater Bemidji. “This grant will directly facilitate our economic expansion by supporting three child care center expansions and establishing a resource center for providers.”
Lieutenant Governor Peggy Flanagan commented on the importance of such investments, stating, “Access to affordable, reliable child care gives families and caregivers options and peace of mind. These grants benefit businesses, families, and our economy, helping us create a state where all families can thrive from day one.”
Of the $6.1 million awarded, approximately 84%, equaling $5.1 million, will be utilized to bolster child care availability in Greater Minnesota, generating around 1,337 slots. DEED Commissioner Matt Varilek noted, “Secure child care is not just important for parents’ peace of mind but is also pivotal for maintaining a healthy and thriving economy.”
Since the establishment of DEED’s Child Care Economic Development Grant program in July 2023, over $12 million has been granted to 45 organizations, resulting in more than 3,500 new child care slots created statewide. These initiatives align with recent findings from SmileHub, which ranked Minnesota among the best states for children due to the availability and credibility of its child care centers.
By investing significantly in child care, Minnesota is taking important steps to address the growing demand for more availability and accessibility, strengthening the workforce and supporting families across the state.
This funding is not just about child care; it’s about creating pathways for economic vitality and improving lives. Minnesota's strategic approach addresses the significant challenges surrounding childcare, thereby enhancing the quality of life for families and fostering future economic growth.