The bill establishes a new program called 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, these programs must meet specific criteria, including not being subject to penalties or exclusions related to fraud or public funding restrictions.

Additionally, the bill outlines the requirements for receiving payments, including the need for programs to submit applications, maintain accurate records, and comply with various conditions. Payments will be based on the number of full-time equivalent staff caring for children, with additional increases for programs receiving child care assistance or located in areas with low access to child care. The bill also mandates an annual report to the legislature detailing the number of payments made and their outcomes. An appropriation from the general fund is included to support the program in fiscal years 2026 and 2027.