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, these programs must meet specific criteria, including not being subject to fraud findings or payment suspensions, and must comply with various reporting and record-keeping requirements.

Additionally, the bill appropriates funds from the general fund for the program, with specified amounts for fiscal years 2026 and 2027. The commissioner is required to report annually on the number of payments made and the outcomes achieved. The bill outlines the eligible uses of the funds, which include personnel costs, rent, equipment purchases, and professional development. It also allows for payments to legal nonlicensed child care providers for costs incurred before receiving assistance from the child care assistance program. The program is designed to enhance access to early care and learning while supporting the recruitment and retention of early educators in rural Minnesota.