Child Care Economic Development Grant


  • Physical Space and Facilities


In 2021, Minnesota established a grant fund, administered by the Department of Employment and Economic Development (DEED), to fund solutions to reduce the child care shortage and support economic development across the state. The state authorized $2.5 million in spending from this fund in fiscal years 2022 and 2023. Funding is provided in the form of grants to local communities; at least 50% of the funds must go to communities outside the Minneapolis-St. Paul metropolitan area. The grant can be used toward the cost of acquiring a building as well as rehab or renovation costs; applicants may request up to $300,000. DEED uses approximately 3% of appropriated funds to administer and monitor the program.


Minnesota Department of Employment and Economic Development. (n.d.). Child care economic development.

Connections to Key Early Learning Study at Harvard (ELS@H) Findings:

High-quality, affordable early education and care supports children’s healthy development and allows families to work, engage in their own educational pursuits, and/or participate in other aspects of community life. To support children and families in these instrumental ways, research suggests there is a need to expand the availability of early education opportunities across the mixed-delivery system.

Findings from the Early Learning Study at Harvard (ELS@H) show:

  • Families rely on a range of formal (e.g., Head Start, center-based care, public pre-K) and more informal (e.g., home-based, relative care) early education settings; when choosing a setting for their child, families balance many logistical constraints and personal preferences.
  • But for many families – and especially low- and middle-income families – early education choices remain tightly constrained due to issues of affordability and supply.
Learn More About ELS@H Findings

Learn more about Minnesota

Context matters. Visit the Minnesota profile page to learn more about its demographics, political landscape, early education programs, early education workforce, and funding sources and streams.

Learn More About Minnesota
  • The state population is 5,717,184
  • The percentage of children under 6 with all available parents in the workforce is 76%
  • The rural percentage is 28.1%