A Statement from First Children’s Finance

01/12/2026

Recent headlines and heightened public attention related to child care funding in Minnesota have caused concern for child care providers, families, and community partners. While these dynamics are affecting communities nationwide, the impacts are currently being felt most acutely in Minnesota, where information is evolving, and public scrutiny is high. For many providers and families, this moment is not abstract; it is affecting daily operations, enrollment, staffing, and a sense of safety. We want to acknowledge how unsettling this has been for those most directly impacted.

We are also aware that increased immigration enforcement activity and heightened law enforcement presence in some communities are contributing to fear and instability. Families are keeping children home; providers are losing revenue; and child care staff are experiencing disruptions at their workplaces. These conditions have real consequences for children, families, and providers—well beyond any individual allegation or headline.

Child care is an essential part of every community and regional economy, yet it operates with limited public support or infrastructure. It allows parents to work and sustain employment, supports local businesses, and helps prepare children for long-term educational and civic success. At the same time, communities across the U.S. are already facing a persistent shortage of child care. Any disruptions or delays in public funding risk further destabilizing child care businesses.

First Children’s Finance continues its work supporting child care programs and the families they serve. We provide financial products, technical assistance, and capacity-building support, and we maintain strong oversight and compliance practices across our lending and grantmaking. While fraud is unacceptable, allegations are not the same as substantiated findings. Our focus remains on stability, fairness, and ensuring that providers across all communities are not harmed by confusion, misinformation, or fear.

For more than 34 years, First Children’s Finance has worked alongside child care providers and communities through periods of change and challenge. Minnesota is also First Children’s Finance’s founding state and home to our headquarters, which deepens our responsibility to approach this moment with care, clarity, and respect. We also recognize that developments in one state can create concern beyond its borders, as providers, partners, and state systems across the country brace for possible ripple effects tied to public funding.

We are monitoring developments closely and staying in communication with partners and state agencies. In the meantime, we remain committed to listening, supporting, and standing with child care providers, their staff, and the families who depend on them.