Over a decade ago, bipartisan effort under Gov. Mark Dayton saw the creation of Minnesota’s early education scholarship program — a feat that he called one of his greatest achievements. Forged through occasionally intense political conflict, the program has continuously seen funding increases over the years. In FY 26 and 27, it will receive $126 million dollars of funding, rising dramatically from FY 20’s $70.7 million.
The early education scholarship is a nationally unique solution for childcare issues, allowing Minnesota to claim the title of innovator for the choice-based program.
Childcare costs are a significant problem for many Minnesota families, with the average childcare cost per year at $22,569 a year. This program offers a balm. Yet the vision of the program is to fund something more than childcare: an education that would benefit children in the long-term. Thus, the title of scholarship. (There is academic doubt that educational programs for very young children have long-term benefits.)
The program is designed to cast a wide net of availability. In the 23-24 school year, a little under half (43.5 percent) of scholarship recipients had never received any previous form of government assistance. To qualify, a family can demonstrate that they are currently participating in a qualifying family assistance program (like SNAP) or that they have a household income equal to or less than 185 percent of the federal poverty level. Once a scholarship is awarded, children are automatically eligible to receive it for the next year, without the need for reapplication.
In FY 24, 16,100 children under five received a scholarship through the program. Scholarship amounts can go up to $15,000 per child, depending on the type of care families choose. Funds increase when parents choose care centers rated higher under Minnesota’s Parent Aware system or publicly funded care centers, like charter schools or Head Start programs. (The majority of scholarships are spent at centers rated Four Stars under the Parent Aware system.)
There are two ways that a child can access a scholarship. Pathway I scholarships are awarded directly to eligible children through Area Administrators (like tribal nations) and are used at an eligible program the family chooses. Pathway II scholarships are awarded to children through Four-Star Parent Aware Rated programs that have been granted scholarship funds for use in their program.
There are many different centers across Minnesota that welcome children under the scholarship program. The majority of programs are privately owned child care centers and family child care. As any childcare program can apply to receive a Parent Aware rating, programs are widely available, even in rural areas.
Some programs work with children in foster care, others with children who have learning disabilities, and still others with families who want community-based care or language immersion, such as families with tribal affiliation. Most scholarships serve children aged 3-4, but are available from ages 0-4.
The scholarship program is one of many programs designed to provide care to Minnesota’s three and four year olds. However, some programs such as free public prekindergarten have been criticized for siphoning essential funds away from private childcare organizations. This scholarship program still allows private enterprise to thrive.
This program, emphasizing freedom of choice, echoes Minnesota’s groundbreaking adaptation of charter schools — another program designed to honor the unique needs of each individual.