Child Care Business Health Matters to Thief River Falls’ Economy
September 21, 2026
Reliable child care helps parents work, employers retain employees, and communities grow. But a new analysis from First Children’s Finance shows that many of the businesses providing this essential service are struggling to cover their costs.
The organization’s 2025 State of Child Care Business Survey, released on September 21, 2026, gathered insights from nearly 2,000 child care business owners across Iowa, Michigan, Minnesota, Oregon, and Vermont. Its findings highlight financial challenges that deserve attention from employers, community leaders, and anyone concerned about the future of child care.
Many respondents reported little change in their financial circumstances between 2024 and 2025. However, an unchanged financial position did not necessarily mean a healthy business. For some providers, it meant another year of postponing repairs, using personal savings, or going without pay. In four of the five states, owners reporting financial setbacks outnumbered those reporting improvement.
The consequences often extend into providers’ homes. In three states, a majority of family child care owners said business losses reduced their household income. Outside Vermont, many child care businesses lacked reserves to manage unexpected expenses or revenue shortfalls.
Staff compensation presents another challenge. At least two-thirds of child care centers in each surveyed state disagreed that the workforce receives fair pay, while most centers reported being unable to afford higher compensation.
Vermont offered a more encouraging picture. With a dedicated child care funding source through Act 76, its respondents expressed greater optimism and were less likely to report financial risk. The contrast raises an important question for other states: how can support help child care businesses achieve lasting financial stability?
For Thief River Falls and Pennington County, these findings reinforce the importance of treating child care as part of our economic development work. Although the survey does not establish local conditions, it identifies pressures worth understanding as we work to sustain and expand child care availability.
A child care opening is only part of the solution. The business providing that care also needs enough revenue to pay its owner and employees, maintain its space, and prepare for unexpected costs. When those needs go unmet, families and employers can become vulnerable to disruptions in care.
Advance Thief River recognizes the connection between sustainable child care businesses and a strong local workforce. Listening to providers, understanding their business challenges, and building partnerships around practical solutions can help our community support both the people who need care and the people who provide it.
Source: First Children’s Finance, 2025 State of Child Care Business Survey, executive summary. Survey findings are paraphrased; the discussion of local implications reflects Advance Thief River’s perspective.
