Melrose is set to get a boost in child-care funding as Minnesota rolls out a fresh round of grants aimed at opening more than 1,100 new child-care slots statewide. The Stearns County city is one of 11 communities and organizations tapped for money in the latest round, a move that could mean new openings at local centers and family providers once projects get rolling.
State Awards More Than $1.4 Million
According to WJON, the Minnesota Department of Employment and Economic Development has approved more than $1.4 million in Child Care Economic Development Grants in the newest cycle. State officials say the money is expected to help create over 1,100 additional child-care slots across Minnesota, with Melrose among 11 recipients and more than 80% of the funding headed to outstate communities.
How The Grants Work
The department opened this round of Request for Proposals in February, setting aside $1.425 million for projects that can include child-care start-ups, expansions, workforce training, facility upgrades and help with licensing, per DEED. The RFP capped requests at $300,000 for multi-location efforts and $100,000 for single-location plans, with priority given to communities that can show significant shortages in local child-care options.
Part Of A Broader Push
This grant round is one piece of a larger state push to shore up child-care availability. Gov. Tim Walz and state officials previously rolled out a $6.2 million funding round in 2024 that was projected to add more than 2,200 slots, part of a multi-year strategy to treat child care as a core economic development issue, according to the governor's office. That larger infusion helped pave the way for smaller, more targeted awards like this one that are designed to help specific communities launch or grow local providers.
DEED Commissioner Matt Varilek has framed the program as an investment in both families and the workforce, saying it helps employers keep workers and makes it possible for more parents to stay in or reenter the job market, according to WJON. Since mid-2023, the initiative has steered more than $13 million to 56 organizations across the state, the outlet reports.
Local Uses And Next Steps
Program guidance from DEED lists eligible uses that include startup and expansion costs, staff training, improvements required to meet licensing standards and incentives aimed at retaining child-care workers. Specific plans for how Melrose will put its new funds to work have not yet been detailed publicly. Awardees must first finalize grant agreements with DEED before projects start and any new slots are officially added to local capacity counts.
From here, communities will move into contracting and project planning with the agency. Many use the money to help centers and family providers open doors or add capacity within a relatively short window. Residents who want to follow the money or see where past awards have landed can find statewide maps, program details and prior funding lists through DEED's child-care program information.
