ST. PAUL — Applications for state Child Care Economic Development grants to fund solutions to child care shortages are being accepted until Aug. 30

The Minnesota Department of Employment and Economic Development (DEED) on Tuesday launched the latest round of these grants offered to community partners intended to increase quality child care providers to support economic development across Minnesota.

A total of $2.425 million will be available in this second round of funding; About $2.425 million was awarded previously to 14 projects.

DEED is seeking proposals from local governments and nonprofits with experience in the operations, financing, advocacy, or advancement of the delivery of child care services. Qualified parties may request up to $300,000 in state funds for this program.

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

“We continue to hear that a lack of quality child care is one of the major hurdles preventing the growth of our workforce,” said/ DEED Commissioner Steve Grove. “Through past grants, we ve seen the positive impact this funding has on both families and communities. We’re excited this next round of grants will further address the child care shortage and help parents pursue their careers and support their families.”

Program funds 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.

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.

All applications must be received by Aug. 30. Proposals should be submitted by email to: MNSBP.DEED@state.mn.us/ in a single PDF file. Award recipients will be notified in October.