Child Care Economic Development Grants Now Open for Application

St. Paul, MN – The Minnesota Department of Employment and Economic Development (DEED) today announced the latest Request for Proposals (RFP) round for Child Care Economic Development Grants. These investments enable community partners to increase the number of quality child care providers serving their regions and support economic development across Minnesota. A total of $1.425 million will be available.

DEED seeks proposals from local governments or nonprofits with experience in the operation, financing, advocacy or advancement of the delivery of child care services. Qualified parties may request up to $300,000. To be eligible for the maximum amount, the proposal must be used to expand child care capacity at a minimum of two locations. The maximum amount a single location proposal can request is $100,000.

Individual child care providers, both centers and family-based, seeking investments to establish new operations or expanding existing operations are encouraged to partner on their request with local or regional organizations with experience in the planning or financing of child care facilities.

“Child care grants are investments in Minnesota’s future,” said DEED Commissioner Matt Varilek. “They make work possible for parents, support our children’s early development, strengthen local economies and keep communities vibrant.”

Grants can be used for child care business startups or expansions, training, facility modifications, direct subsidies or incentives to retain employees, or improvements required for licensing, and assistance with licensing and other regulatory requirements.

Applicants that are licensed providers must demonstrate their license is in good standing at the time of application. Non-licensed child care providers are not eligible, unless they are using the funds as part of a project to obtain a license. If an applicant is using the grant to obtain a license, they must submit proof when their license is obtained.

“These grants go beyond supporting kids and parents,” said Carla Vita, DEED Director of Childcare and Community Services. “They support working families today while nurturing the growth of the next generation – building healthier, more resilient communities for everyone.”

Priority will be given to communities that have a documented shortage of child care providers in their proposed project area. The definition of documented shortages may include disparities in access to affordable quality child care among targeted groups including but not limited to rural communities, low-income communities, Black, Indigenous and people of color individuals, persons with disabilities, veterans and women.

At least 50% of the available grant funds will be awarded to communities located outside the seven-county metropolitan area.

All applications must be received no later than 4 p.m. Central Time, March 17, 2026. Award recipients will be notified in May 2026.

Interested organizations are encouraged to attend a virtual information session Feb. 19, 2026, 2:30 p.m. Central Time. The RFP application and additional information can be found on DEED’s Competitive Grants and Contracts page.

Questions regarding this RFP can be submitted by email to [email protected].

DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. Find out how DEED delivers for Minnesota by visiting the DEED website, Do Business, CareerForce.mn.gov, or by following us on social media. 

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Upon request, this information can be made available in alternate formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161.