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Minnesota is losing more child care providers amid rising costs and sticky red tape

More than 4,000 licensed in-home child care providers have closed in Minnesota over the last decade due to rising costs, regulations, and burnout, despite $1.3 billion state investment.

  • More in-home child care providers in Minnesota are shutting their doors, with more than 4,000 quitting over the last decade, leaving 5,781 by the end of 2024—about 40% fewer.
  • Rising overhead costs and tougher rules are forcing licensed family child care providers out, as maintenance, insurance, and compliance demands become nearly full-time tasks, Lisa Thompson said.
  • Cost data from the Economic Policy Institute show Minnesota averages about $1,900 monthly for an infant, and despite more than 68,340 child care slots remaining, families face shortages, Office of the Ombuds reports.
  • The Minnesota Legislature committed funding in 2023 to expand access, but officials say closures persist and a state follow-up survey is active for the next two weeks to identify causes.
  • Closures have slowed but persistent exits signal deeper structural problems, threatening children in their first five years and straining parents with young children amid ongoing Family child care program losses.
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Minnesota is losing more child care providers amid rising costs and sticky red tape

NORTH MANKATO, Minn. — More in-home child care providers in Minnesota are shutting their doors, and many day care centers are closing, too, leaving thousands of parents scrambling to find places for their children to stay while they work or attend classes. According to the state Department of Human Services, more than 4,000 licensed in-home child care providers have called it quits over the last decade, creating a crisis in which families are in…

·Fargo, United States
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MPR News broke the news in Saint Paul, United States on Thursday, September 4, 2025.
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