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Childcare providers on the impact of immigration enforcement surge [FULL]
Childcare providers share their experiences of an immigration enforcement surge in the state, attempts by the Trump administration to block federal childcare funding and more.
(FOX 9) - A new survey shows Minnesota’s childcare industry is still struggling, with most providers reporting ongoing financial and enrollment challenges.
Childcare financial pressures and enrollment struggles
What we know:
According to the spring 2026 survey by the Federal Reserve Bank of Minneapolis and First Children’s Finance, 80% of childcare providers say Minnesota’s childcare industry remains in crisis, though that’s a slight improvement from the 86% surveyed last year.
Of the Twin Cities childcare centers surveyed, 35% said their financial stability had decreased.
New challenges for childcare centers
Dig deeper:
The survey also highlights new hurdles for childcare centers, including immigration raids that could have scared away families, and Minnesota’s new paid leave benefit, which allows parents to delay enrolling infants.
Most providers reported enrollment levels below 85% of their licensed capacity, which the industry considers healthy. The survey found overall enrollment trends in 2025 were mostly unchanged from the year before.
Providers continue to face many of the same challenges as in past years, including families unable to afford tuition and competition from public school early childhood programs.
Many providers say they’re also dealing with higher food costs, with 66% reporting significant increases in 2025.
Staffing has also become more difficult, with centers reporting the new paid leave policy as the top factor affecting their ability to hire and keep staff.
Minnesota's paid leave law, which started Jan. 1, 2026, lets new moms spend up to 20 weeks recovering and bonding with their child. Providers say this means parents are waiting longer to enroll babies and sometimes withdrawing older children to save money.
Family childcare providers, who typically operate out of their homes and have lower tuition, reported fewer enrollment declines than larger centers.
The backstory:
The 2026 Minnesota Child Care Business Survey is the sixth of its kind, with more than 760 providers participating, according to the Federal Reserve Bank of Minneapolis and First Children’s Finance.
The Source: Information provided by results from the 2026 Federal Reserve Bank of Minneapolis and First Children’s Finance industry survey.