WI has an exemption for some religious based childcare programs, but there is other criteria for the exemption. Not sure what it is, tbh. I think it has to be a "legal" non-profit church and there has to be a parochial school involved. So, one can't just claim to be a church.

On the other hand, no one does much of anything about illegal daycare operations. In fact, I've tried to call attention to the issue, and I get crickets. It's frankly quite strange. I get answers like "report them", but when I do, nothing happens. Meanwhile, the same people run illegal operations with 12-15 kids and no license for years!

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