The close of last month’s special legislative session saw lawmakers pass a $52 billion state budget and avoid a government shutdown. Within that budget are several key early childhood initiatives, including $500 million in new funding to support access to and quality of early childhood care and education, and crucial policy changes made across the early childhood system.

Investing in quality early education is an investment in racial and health equity. Like many other systems, the early childcare and education sector has been influenced by decades of systemic and structural racism. We see the impact of this history today, with Black, Indigenous, Latinx, Asian Pacific Islander and other communities of color having less access to childcare that is high quality, culturally relevant and supportive of parents and families’ needs.

Investments in early childcare

Within the $500 million investment, $304 million is allocated as monthly grants sent directly to early childcare providers through 2023. This support will help stabilize efforts of providers and bolster their work as they seek to improve access to quality early childcare and education across the state.

Funding also supports Minnesota’s Child Care Assistance program, which provides funds to childcare providers serving low-income children. This assists low-income families with paying for childcare so that parents can work or pursue education while their children receive quality care.

Support for informal childcare providers in our communities— family members, friends and neighbors—also received $1.5 million in funding, which will primarily be used for training.

Impactful policy changes

In addition to funding increases, we also saw important changes to public policy.

These included increased flexibility in the types of programs eligible to apply for state funding, which helps ensure that culturally, linguistically and geographically diverse programs can meet complex needs of families.

The special session also included the creation of an ombudsperson (a government-appointed public advocate) for family childcare providers, as well as a childcare and early childhood education working group to assess Minnesota’s early childhood system and provide recommendations for improvement.

Importance of early childhood care and education

Quality early childhood care and education is an essential component to lifelong health— and investments in this field have significant long-term benefits.

According to research from the Federal Reserve Bank of Minneapolis, for every $1 invested in early childhood, the public return can be up to $16 in the form of reduced incarceration rates, increased high school graduation, enhanced self-sufficiency and more. But the benefits go beyond education and economics.

Early childhood care and education is also a health issue, as research shows us time and again that access to quality care and education early in life plays a key role in future health. That’s why the Blue Cross and Blue Shield of Minnesota Foundation has invested so significantly in it for the past 20 years.

Through its Healthy Start program, the Blue Cross Foundation funds nonprofit organizations across the state to increase access to and quality of early childhood care and education. The Foundation also co-chairs the Start Early Funders Coalition’s public policy committee and led the 2021 legislative session with a racial equity lens – prioritizing policies that benefit Black, Indigenous and children of color and their families, and families with low income.

Want to learn more?

• Read about the link between positive early childhood experiences and better lifelong health outcomes
• Explore research about racial inequities in early care and education
• Discover the great work being done by the Foundation’s Healthy Start grantee partners, including Northside Achievement Zone, Close Gaps by 5, Think Small, Voices & Choices for Children, the Wildflower Foundation and more
• Read more about the Foundation’s commitment to investing in early childhood care and education