Minnesota Paid Leave Program Approves 75,000 Applicants in Six Months

The Minnesota Department of Employment and Economic Development approved nearly 75,000 applications and distributed approximately $600 million in benefits during the first six months of the state's Paid Leave program. Launched on January 1, 2026, the program provides wage replacement for medical leave, family care, and bonding with a new child.

Program data shows that 64% of approved applicants are women and 58% are under age 40. Medical leave accounted for 50% of use cases, while bonding accounted for 36%. The average weekly benefit payment is $1,083. While the agency processed 126,000 total applications, over 40% were rejected. Officials noted that an initial surge in applications, driven by pent-up demand from parents who welcomed children in 2025, has since leveled off.

Financially, implementation costs arrived $70 million under budget. Funding is sourced from a $668 million initial account and payroll taxes from employees and employers. Although first-quarter payroll tax collections of $344 million were lower than the $1.53 billion annual projection provided by Milliman, total benefit spending is also expected to be lower than forecast. The agency is currently working with an actuary to determine 2027 payroll tax rates, which will be announced by the end of July.