The Greater Minnesota Child Care Facilities Capital Grant Program was established under Minn. Stat. 116J.417 in the 2020 legislative session by 2020 Minnesota Laws, 5th special session, Chat. 3, Art. 5, Sec. 4. The program was unfunded at the time. No appropriations were made available for the program until the 2023 session under 2023 Minnesota Laws, Chap. 72, Art. 1, Sec. 21 subd. 5 in the amount of $900,000 from general obligation bond funds. This program is expected to launch after July 1, 2024.
The purpose of the greater Minnesota child care facility capital grant program is to keep or enhance jobs, increase the tax base, or expand or create new economic development in the area in which the grants are made, by providing facilities for the child care necessary to support workers and their families. This program will offer two types of grants contingent on the availability of funding; general obligation bond grants to political subdivisions and general fund grants to private child care providers. As of this report date no general fund appropriations have been made available for this program.
Grants must not be awarded for more than $500,000 per project or more than $2,000,000 in two years to an applicant for one or more projects in the same city or county.
A grant may be used to acquire land or an interest in land, predesign, design, renovate, construct, furnish, and equip facilities in which to provide child care or for other child care facility improvements that support the purposes for which this grant program is established. Money from the account in the general fund may also be used to upgrade or expand existing nonprofit child care facilities for purposes of meeting state requirements. All projects must increase child care capacity in the community that is served by the provider and meet all state requirements for child care facilities or programs.
This program is in the early planning stages of deployment. DEED expects this program to begin solicitation of proposals for funding after July 1, 2024.
