Updates: Child Care Stabilization Financial Hardship Grant and One-Time Supplemental Stabilization Grant

Financial Hardship Grant update

The Minnesota Department of Human Services (DHS) is pleased to provide an update to Minnesota child care providers on its progress in the development of the Child Care Stabilization Financial Hardship Grant program. This program was established by the Minnesota Legislature using federal Child Care Stabilization Funds and is designed to help child care providers who are experiencing extreme financial hardship. The Financial Hardship Grant program will award approximately $70 million to Minnesota child care providers.

DHS will begin rolling out the Financial Hardship Grant program in January 2022, with the first Financial Hardship Grant application period opening on Jan. 25, 2022. DHS will reserve some Financial Hardship Grant funds to ensure that funding is available to child care providers who do not apply in January but who meet financial hardship criteria in February 2022. The availability of Financial Hardship Grants beyond February 2022 will depend on the availability of funds and the demand for these grants from child care providers.

Financial Hardship Grants will be made available beginning in January 2022 through an application process that is separate from that used to apply for Child Care Stabilization Base Grants. As a Minnesota child care provider, you can expect:

• The opportunity to apply for a Financial Hardship Grant in January with future opportunities dependent on the availability of funds.
• An online application process that is separate from the Child Care Stabilization Base Grant application process. Minnesota child care providers who are experiencing extreme financial hardship are invited to apply for both grants, but should review each grant’s application criteria carefully to understand the different purposes and requirements of each grant.
• More information and application support is available on DHS’ Child Care Stabilization Grants webpages, through upcoming virtual information sessions and through phone and email support. More information on the virtual information sessions and options for phone and email support will be shared in January.

One-Time Supplemental Stabilization Grant update

In addition to the Child Care Stabilization Financial Hardship Grant program, the Minnesota Governor’s Office and DHS have also prioritized $20 million from the COVID-19 Flexible Response Account for Minnesota’s child care providers. These funds, called the One-Time Supplemental Stabilization Grants, are part of Minnesota’s share of the American Rescue Plan Act funding and Minnesota child care providers can also apply for these grants in the January 2022 Child Care Stabilization Base Grant application. All $20 million of the One-Time Supplemental Stabilization Grant funds will be awarded in January 2022. The Child Care Stabilization Base Grant’s requirement to use 70% of funds to increase compensation for staff regularly caring for children does not apply to One-Time Supplemental Stabilization Grants.

Timeline for Child Care Stabilization Grant Program Opportunities

Below is the timeline for applying for both Child Care Stabilization Financial Hardship and One-Time Supplemental Stabilization grants.

• November 2021
  • Provider and expert engagement to inform planning
• December 2021
  • Dec. 28, 2021: $20 million for One-Time Supplemental Stabilization Grants approved by the Legislative COVID-19 Response Commission.
• January 2022
  • Jan. 6, 2022: A second communication will be sent to Minnesota child care providers with more information about One-Time Supplemental Stabilization and Financial Hardship grant criteria, grant award amounts and any other new application information. All information will also be available on DHS’ Child Care Stabilization Grants  webpages.
  • Week of Jan. 10, 2022: Virtual information sessions will be held for child care providers
  • Jan. 18-Jan. 25, 2022: January Child Care Stabilization Base Grant and One-Time Supplemental Stabilization Grant application period
  • Jan. 25-Feb. 8, 2022: January Financial Hardship Grant application period
• February 2022
  • Mid-February 2022: Award notifications will be sent to recipients of January’s Financial Hardship grants.

DHS will send additional information to child care providers about these new grant opportunities on January 6, 2022. In the meantime, Child Care Stabilization Base Grants remain available to all eligible Minnesota child care providers on a monthly basis.

For more information about Child Care Stabilization Base Grants, please see the Base Grant and Base Grant frequently asked questions (FAQs) webpages.