Hagedorn Fighting for Increased Access, Lower Costs for Childcare

WASHINGTON – Congressman Jim Hagedorn (MN-01) served as the Ranking Member of the Committee on Small Business Subcommittee on Rural Development, Agriculture, Trade, and Entrepreneurship for today’s hearing titled, “Taking Care of Business: How Childcare is Important for Regional Economies.” Hagedorn discussed the needs of working families for affordable and accessible childcare and the impact on local economies when state regulations impede the growth and availability of childcare services.

These state regulations create nearly insurmountable barriers to entry for new childcare providers looking to enter the market. Lack of access to working capital is another cause. To emphasize the burden placed on both providers and families, Hagedorn displayed a stack of more than 200 pages of codes, statutes and licensing forms required of childcare facilities by the state of Minnesota.

“Our working families need affordable and accessible childcare. Onerous and excessive regulations at the state level are the number one impediment to expanding access to childcare and driving down the cost of childcare for our families,” said Hagedorn. “I will work with my Minnesota congressional colleagues, Governor Tim Walz, state legislators and local officials to encourage reducing unnecessary regulations and streamlining licensing processes to ease the burden on new providers and families, and help eliminate childcare deserts that are devastating to our rural communities across Minnesota and the nation.”

Hagedorn’s assessment of how excessive and onerous regulations decrease access to childcare services and inflate costs in Minnesota was validated by witness Veronique de Rugy, Senior Research Fellow at George Mason University’s Mercatus Center.

Additionally, Rep. Hagedorn is an original cosponsor of the bipartisan Small Business Child Care Investment Act, which was introduced today by Reps. Susie Lee (D-NV) and Pete Stauber (R-MN). This legislation works to expand access to childcare by granting non-profit childcare providers access to the same types of Small Business Administration (SBA) loans available to for-profit companies.

“For too long parents in southern Minnesota and across America have been burdened with high costs of preschools, long waitlists and few options for childcare services,” said Hagedorn. “This bill provides operators access to loan guarantee programs at the Small Business Administration, which reduces barriers to access capital thus helping parents secure more affordable, timely care for their children no matter where they live.”

More information on the Small Business Child Care Investment Act is avilable here.

Jim Hagedorn was elected in 2018 to represent Minnesota’s First District in the U.S. House of Representatives. He grew up on his family’s grain and livestock farm near Truman. Jim’s father, former U.S. Congressman Tom Hagedorn (MN-02), grandfather, and great-grandfather were all southern Minnesota farmers. Jim currently resides in the rural farming community of Blue Earth. Hagedorn brings policy experience to Capitol Hill from time spent as a congressional aide to former U.S. Congressman Arlan Stangeland (MN-07) and a congressional relations officer for two non-partisan U.S. Department of the Treasury agencies. Hagedorn serves on the House Committees on Agriculture and Small Business to promote farming, Main Street enterprises and southern Minnesota’s way of life.

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