The bill appropriates funds to the Minnesota Initiative Foundations to support regional child care planning and programming, with a total of $1,000,000 allocated from the general fund and $2,500,000 from the workforce development fund for fiscal years 2026 and 2027. These funds are designated for grants to each of the Minnesota Initiative Foundations and are available until June 30, 2031. The bill establishes a base appropriation of $1,000,000 from the general fund for fiscal year 2028 and subsequent years.

The Minnesota Initiative Foundations are tasked with utilizing these grants to facilitate planning processes in rural communities, engage the private sector in supporting child care initiatives, provide training and technical assistance to child care business owners, and recruit programs for quality rating and improvement measurement. The bill emphasizes the importance of quality child care in regional economic development and aims to enhance the capacity of rural child care providers through various support mechanisms, including coaching and professional development opportunities.