Cindy Cunningham addresses childcare regulatory challenges during legislature hearing in Saint Paul

Concerns over the sustainability of family childcare providers took center stage during the Minnesota House Children and Families Finance and Policy Committee meeting on March 5, 2025. Lawmakers and childcare advocates highlighted the pressing need for legislative action to alleviate financial pressures on providers, who are struggling to maintain quality care amid rising operational costs.

Representative Deau emphasized the critical situation, stating, "Providers can't just eat the costs forever," pointing out that many are sacrificing their financial stability out of a commitment to serve families. The discussion underscored the importance of legislative measures that could help reduce costs for providers without necessarily guaranteeing lower fees for families. Deau noted that recent debates on lowering property taxes for family providers could be a step in the right direction, allowing them to offer care at more sustainable rates.

Cindy Cunningham, a veteran family childcare provider and public policy chair for the Family Child Care State Association, shared her insights on the challenges faced by the sector. She criticized the "heavy handedness of regulations" and poor communication from the Department of Human Services (DHS), which she argued are driving many childcare programs out of business. Cunningham expressed frustration over the lack of engagement from DHS in the modernization process, stating, "We feel that has been a fail and has not been used."

The meeting also addressed the need for better engagement with childcare providers in the legislative process. Cunningham pointed out that many of the proposed changes have not adequately considered the input of those directly affected, leading to a disconnect between regulations and the realities of running a childcare business. She called for more accessible communication and translation services to ensure that all providers can participate in discussions that impact their livelihoods.

As the committee prepares for future sessions, the urgency of addressing these issues remains clear. The anticipated modernization package, set to be presented in 2026, will require careful scrutiny and input from the childcare community to ensure that it meets the needs of both providers and families. The outcome of these discussions could significantly shape the future of family childcare in Minnesota, making it essential for lawmakers to prioritize engagement and support for this vital sector.