Why does my 1099 misc come up as self employment? I received a Workforce Grant from the government because I work at a government funded daycare.

It has to do with your answers to questions after you enter the Form 1099-Misc. If you were performing services similar to what you would be doing if you were salaried employed, it is likely the IRS would consider your compensation as self-employment income if it was reported on a Form 1099-Misc.