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Tipsheet

Walz Unveils Paid Leave Program Amid Fallout From Massive Minnesota Fraud Scandals

AP Photo/Damian Dovarganes, file

Nearly 12,000 people have applied for a new paid leave program in Minnesota after criminals stole up to $9 billion from taxpayers across 14 other programs. 

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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.

Nearly 12,000 Minnesotans have applied for Paid Leave since applications opened, according to the Department of Employment and Economic Development. 

Applications for bonding leave for parents who welcomed a child in 2025 went live in early December. Since then, 11,883 Minnesotans have submitted applications as of Friday morning, and DEED has completed reviewing 6,393 leaves. 

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“Receiving nearly 12,000 early Paid Leave applications shows just how motivated people are to engage with this new program,” said DEED Commissioner Matt Varilek. “Our website is managing traffic well and our contact center team is prepared to answer questions from Minnesotans who need assistance. We’re proud and excited to implement this program for Minnesota.” 

Based on projections from an independent actuary, DEED expects about 130,000 approved claims from Minnesotans in the first year of the Paid Leave 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. Those parties can opt in.

 Federal government employees, postal workers, and railroad employees are not covered for their work at those jobs, and cannot opt in. Those working in positions that have been designated as seasonal hospitality employment are excluded from Paid Leave for that position. 

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The nation has watched the estimated fraud in Minnesota grow from $14 million via a program meant to help autistic kids, to $250 million via the Feeding Our Future scheme, to $1 billion, and now to now $9 billion.

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