Navigating Child Care Costs with Parent Aware Scholarships and Resources

Finding the right child care program is a crucial task for families. Think Small acknowledges the importance of quality child care and early education, recognizing that parents know best when it comes to their children. The cost of child care is often a significant portion of a family’s budget, making financial assistance essential. This article explores various avenues for families to access financial support for child care, focusing on Parent Aware scholarships and other available resources.

Early Learning Scholarships: Pathway to Quality Child Care

Think Small administers Pathway I Early Learning Scholarships to help families cover the cost of quality child care and early education for young children in Hennepin and Ramsey Counties. These scholarships are designed to make high-quality child care more accessible for families who need it most. The Early Learning Scholarship program exists to close the opportunity gap by increasing access to high-quality early childhood programs (Minnesota Statutes 124D,165).

Eligibility and Award Amounts

Scholarships are awarded directly to families who meet eligibility requirements. The scholarship award amounts starting July 1, 2025, are based on several factors:

The child’s age
The type of program (e.g., child care center, family child care)
The county where the program is located
Parent Aware participation status of the program

All programs with a current Parent Aware Rating, programs that will earn a Rating within six months, or those programs that have committed to a One-Star Rating are eligible to serve children who have been awarded Early Learning Scholarships.

At this time, maximum scholarship award amounts vary based on the child’s age, program type, county where the program is located, and Parent Aware participation status. For detailed information, view the Early Learning scholarships Maximum Award Amounts and Early Learning Scholarships Maximum Registration Fees.

How to Apply

To apply for an Early Learning Scholarship, families can visit the Early Learning Scholarships Hub. While the online portal is encouraged, it is not a requirement to create an account.

Apply online: Visit the Early Learning Scholarships Hub to create an account and apply.
Paper application: Complete the FY25 Pathway I Application Fillable PDF.

Funding for these scholarships is provided by the Minnesota Department of Children, Youth, and Families (DCYF) using state funding to support the administration of early learning scholarships, 124D. 165. Scholarships are administered by the Minnesota Department of Children, Youth, and Families (DCYF).

Scholarship Coverage

Scholarship funds cover attended days and up to 25 absent days.

Additional Financial Aid Resources

Besides Early Learning Scholarships, several other financial aid options are available to help families manage child care costs.

Child Care Assistance Program (CCAP)

The Child Care Assistance Program (CCAP) provides financial assistance to families with low incomes. This program pays a portion of child care costs directly to the child care provider. To be eligible:

Read also: Blue Hen Families: Parent Portal

Families must have a low income.
Families must use a legal provider.
Families may have to pay a copayment based on their income and the number of people in their family.

To apply, fill out an online application at MNbenefits.mn.gov.

Dependent Care Assistance Plan

Parents whose employers offer a Dependent Care Assistance Plan can benefit significantly. Employers may choose to set aside up to $5,000 annually from employee paychecks to help pay for child care. This amount is not subject to income tax, providing a tax-advantaged way to cover child care expenses.

Child and Dependent Care Credit

Families who pay child care expenses for children under age 13 may qualify for the Child and Dependent Care Credit. This credit is available at both the federal and state levels if filers paid for someone to care for their child or other household services. The amount of the credit depends on how much you earn. You can apply for tax credits on your annual Minnesota and Federal tax returns. The credits reduce the amount of tax owed, and the Minnesota credit may also increase the amount of a refund.

Child Tax Credit

The Child Tax Credit helps parents offset costs associated with raising a child. The federal credit is “nonrefundable,” meaning if the value of the credit exceeds the amount owed in taxes, any balance is not paid to the family. You can apply for tax credits on your annual Minnesota and Federal tax returns.

Earned Income Credit and Minnesota Working Family Credit

Families that have a low income and who file Minnesota and Federal tax returns may be eligible for the Earned Income Credit and Minnesota Working Family Credit. These credits reduce the amount of federal and state tax that you owe. You can apply for tax credits on your annual Minnesota and Federal tax returns.

Read also: Pell Grant Requirements Explained

Other Financial Supports for Child Care Professionals

Several grants and bonuses are available for child care professionals to support their commitment to the field:

Child Care Services Grants: These grants provide funds to help cover the cost of supplies, equipment, technology, and training.
REETAIN Bonuses: These bonuses reward child care professionals who have demonstrated a commitment to the field by continuing their education and professional development.
T.E.A.C.H. Foreign Credential Evaluation Scholarships: These scholarships help early childhood professionals who have completed their higher education coursework outside of the United States pay for the evaluation process, so they can have their education and professionalism recognized.

Parent Aware: Ensuring Quality and Professional Development

Parent Aware’s mission is to help families find the quality care and education their children need to succeed in school and life. As a child care or early education professional, you play a critical role in helping complete this mission. When you volunteer to participate in Parent Aware, you go above and beyond basic health and safety requirements and use researched-based practices that support child development.

Parent Aware recognizes and rewards commitment to quality. Participating programs are assigned a free Quality Coach and Professional Development Advisor to support you throughout the Rating process and help you reach your goals. And many Parent Aware trainings count toward your in-service licensing requirements.

Benefits of Parent Aware Participation

Participating in Parent Aware offers numerous benefits for child care providers:

Quality Coaching: Access to a free Quality Coach and Professional Development Advisor.
Professional Development: Opportunities to grow in your career through various trainings.
Financial Supports: Eligibility to receive financial supports, such as Full-Rating Grants. Full-Rating Grant amounts are tiered based on Star-Level.
Recognition: Recognition for commitment to quality care and education.

Parent Aware also provides an online toolbox with two main components: Parent Aware and Professional Development.

You may be eligible for free or low-cost support provided by these Parent Aware partners. Helps child care and early education professionals document and plan for their training and professional development. CICC offers free coaching to licensed (tribally or through DCYF) child care center or family child care programs in Minnesota. A network of regional and district agencies, and one statewide agency.

Think Small: Supporting Parents and Lifelong Success

Think Small is dedicated to supporting parents on their journey of setting their children up for lifelong success. They provide a wealth of resources tailored specifically for parents, including financial aid to help families pay for child care. The cost of child care depends on your child’s age, type of program, and program’s location. Visit Child Care Aware of Minnesota’s Cost of Care webpage to find current rate information for your area.

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