Minnesota childcare crisis: 80% of providers say industry struggling

The Brief

  • A spring 2026 survey found 80% of Minnesota childcare providers say the industry is still in crisis.
  • Twin Cities centers reported rising financial instability and new challenges, including immigration raids and the state’s new paid leave policy.
  • Most providers are operating below healthy enrollment levels, with many citing cost, competition and staffing issues, the survey found.

(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:

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