More than 3,500 people have started the paid leave program in Minnesota just weeks after a YouTuber exposed up to $9 billion of fraud in the state’s childcare program.
Nearly 18,000 people have applied for the program that opened on Jan. 1.
Criminals exploited 14 of the state’s benefit programs just years after the Legislature blew an $18 billion surplus in 2023. The state hasn't learned its fraud lesson. It doesn't even require those applying to have a job. Applicants must have made $3,900 in the last year.
It’s true. You don’t need to have a job to qualify for Minnesota’s new Paid Family Leave Act.
— Pat Garofalo 🇺🇸 (@PatGarofalo) December 10, 2025
I’m serious.
Fact check me.
Taxpayers are about to start paying a lot of money to people to not work.
The U.S. Department of Health and Human Services froze $185 million meant to fund childcare providers in Minnesota after a viral video exposed widespread fraud in the program.
Minnesota lawmakers enacted a paid family leave law that will pay employees part of their normal pay, between 55 percent and 90 percent of their regular wages, according to the state.
Paid leave pays part of your normal pay. Most people will receive between 55 percent and 90 percent of their regular wages while on leave, with a maximum amount set at the state's average wage. Right now, this is $1,423 per week.
The program is funded via higher business taxes. Minnesota enacted a 9.8 percent corporate income tax, the second-highest in the nation behind New Jersey.
"Paid Leave is doing exactly what we promised: helping Minnesotans care for their families without worrying about making ends meet," Gov. Tim Walz said in a statement. "We built this program carefully with employers and launched it on time and under budget. Paid Leave is one of the most important investments we've made in working families, because life doesn't pause when you welcome a child or get sick — and neither should your paycheck."
The Paid Leave Law, passed in 2023 and signed by Governor Walz, created a statewide paid family and medical leave program providing eligible workers with paid time off for major life events like welcoming a child or caring for themselves or a family member.
Paid Leave guarantees eligible workers up to 12 weeks of paid leave to welcome a new child, care for a loved one, or manage their own medical needs. Workers needing both family and medical leave in the same benefit year may take up to 20 weeks total.
Based on projections from an independent actuary, Minnesota expects about 130,000 approved claims from Minnesotans in the first year of the paid peave program.
To receive payments, you must have earned at least $3,900 in the last year. This amount can come from one job or be combined from multiple jobs.
Paid Leave covers nearly all Minnesota workers – including full-time, part-time, temporary, and most seasonal workers. It covers nearly every employer, regardless of business industry or size. But it doesn't cover independent contractors, self-employed individuals, and Tribal Nations.
Walz said that he won’t run for reelection after criminals exploited 14 of the state’s benefit programs.
