local
Minnesota Paid Leave has paid out nearly double what workers, employers have paid in
By Renee Cooper at KSTP 5 Eyewitness News (ABC)
· July 9, 2026
· 4 min read
Minnesota’s paid leave program has paid out far more than it has brought in so far, as some applicants say they are still waiting months for approval.
In its first six months, the state paid out $598 million while bringing in $344 million through a new wage tax known as “premium payments.” The...
Key takeaway In its first six months, the state paid out $598 million while bringing in $344 million through a new wage tax known as “premium payments.
Why this matters in The Minneapolis
The significant gap between payouts and premiums collected by Minnesota's paid leave program raises concerns about its long-term financial sustainability in the Twin Cities area. As the program continues to attract robust interest, the funding shortfall could impact local businesses and workers who rely on it. The 0.88% wage tax, split between employers and employees, may need to be adjusted to ensure the program's stability. With the authority to raise or lower the rate up to a 1.1% cap, DEED will likely face pressure to make adjustments to avoid depleting the startup fund. For Minneapolis residents like Robert Younger, who are still waiting for approval, a stable and sustainable program is crucial to receiving the support they need. As the next premium payments are due, it will be important to monitor how DEED addresses the funding gap and its impact on the local community.
About this story
Original reporting by KSTP 5 Eyewitness News (ABC) . The Minneapolis surfaces reporting from trusted publishers and adds local editorial context so readers can quickly understand what a story means for their community. We attribute every source, link to the original report, and follow a documented editorial standards policy. To understand how stories are selected and reviewed, read our about page .
For the complete original report, visit KSTP 5 Eyewitness News (ABC) . Have a tip or correction? Contact our newsroom .
Category: local ·
Published: July 9, 2026 ·
Source: KSTP 5 Eyewitness News (ABC) ·
Reading time: 4 min
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Frequently asked about this story
What is this story about? Minnesota’s paid leave program has paid out far more than it has brought in so far, as some applicants say they are still waiting months for approval.
In its first six months, the state paid out $598 million while bringing in $344 million through a new wage tax known as “premium payments.” The...
When was this published? This article was first published on July 9, 2026 by KSTP 5 Eyewitness News (ABC) and curated for The Minneapolis readers.
Who reported this story? This story was reported by Renee Cooper at KSTP 5 Eyewitness News (ABC). To learn more about how The Minneapolis selects and reviews stories, see our editorial standards .
Where can I find related coverage? See more local coverage from The Minneapolis, or browse our daily briefing and topic hubs .
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