The bill establishes the Rural Child Care Stabilization and Support Payments program, which will be administered by the commissioner of children, youth, and families. This program aims to provide financial support to eligible child care and early learning programs located in rural areas of Minnesota, specifically in cities or towns with populations of 2,500 or fewer. Eligible programs include licensed family day care homes, child care centers, certified license-exempt centers, and Tribally licensed programs. To qualify for payments, programs must meet specific criteria, including not being subject to fraud findings or payment suspensions, and must comply with application and reporting requirements.

Additionally, the bill outlines the conditions for payment, including the necessity for programs to maintain accurate records of expenditures and staff employment. Payments will be based on the number of full-time equivalent staff and will be awarded on a noncompetitive basis. The bill also specifies eligible uses for the funds, such as personnel costs, rent, equipment purchases, and professional development. Furthermore, it mandates an annual report to the legislature detailing the number of payments made and their outcomes. An appropriation from the general fund is also included to support the program in fiscal years 2026 and 2027.