Minnesota Urged to Reform Child Care Licensing Rules

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Economists argue that Minnesota's stringent child care licensing requirements are exacerbating worker shortages, restricting supply, and driving up costs for providers and families. They say the state can loosen training and education rules without jeopardizing quality, and that research shows even modest reforms could significantly improve affordability.

Why it matters

Minnesota ranks as one of the least affordable states for child care, with costs eating up 18% of the median family's income. Experts say the state's restrictive licensing rules are a major factor, and that reform could expand access and make care more affordable for families.

The details

The Minnesota Department of Children, Youth, and Families has proposed revisions to loosen licensing rules and make it easier for day care centers to hire staff. Currently, Minnesota ranks as the 10th-most-restrictive state nationwide for child care regulations. Researchers say states that allow higher child-to-staff ratios and require less education for workers tend to have more affordable child care. While positive interactions between teachers and children are important, studies show even modest education requirements can improve quality.

• In 2024, Minnesota ranked as the 9th least-affordable state for child care, with infant care costs eating up 18% of the median family's income.
• In 2022, researchers at the Federal Reserve Bank of St. Louis found a negative relationship between child care affordability and child-to-staff ratios in each state.
• In 2024, the Minnesota Department of Children, Youth, and Families issued over 4,000 variances to allow centers to hire workers who didn't meet the state's requirements.

What’s next

The Minnesota Department of Children, Youth, and Families' proposed revisions to licensing rules are currently under consideration by state lawmakers.