Walz’s $65B Budget Proposal Aims To Support Minnesota Families With Child Care and Paid Leave Initiatives

St. Paul’s legislative process is in full swing with Gov. Walz’s $65 billion budget proposal. Child care and paid family leave are key proposals impacting Minnesota families. Both issues are complex and interconnected.

Gov. Walz’s budget includes a new child tax credit for low-income families and expanded eligibility for the Child and Dependent Care Credit to help families afford child care.

The proposal has bipartisan support and various figures are being discussed in the legislative process. The Minnesota House of Representatives stated in an article published on January 25, 2023 that Rep. Kotyza-Witthuhn’s proposal in the House would allow parents of children under 5 to receive up to $10,000 in child care tax credits.

Clare Sanford, from the Minnesota Child Care Association, said this is an “exciting year for child care.” She said the budget includes tax credits, support for low-income families, and compensation for early educators, and that it’s “comprehensive and wonderful to see,” according to Kare 11 News on January 24, 2023.

She also said that, coming out of the pandemic, there’s a different conversation about supporting families and young children, and that there’s still negotiation to come.

Gov. Walz is proposing a $668 million plan to provide up to 12 weeks of paid family leave and 12 weeks of paid medical/sick leave for Minnesota workers. The goal of this proposal is to provide economic stability for low-income and minority workers, who are more likely to lack access to paid leave.

This policy is in line with those already in place in 11 states and the District of Columbia. The proposal aims to provide economic stability for low-income and minority workers during challenging times.