Without even looking at the racist part of this the way they treated the baby - pretending as I assume she didn't actually make contact with the baby would be grounds on many levels to term. Add in the racist comments and obviously as a family you are not on the same page as your daycare family on very important issues and that too is a reason to term.
I agree on talking to the parents, letting them know what happened, letting them know that it is their responsibility as parents to teach tolerance and acceptance and would they please speak with the girls because if it happens again in your home they will be termed on the spot because it is not acceptable in this day and age. Then follow through. Being school age the money you would lose from them over the new baby makes it clear which group leaves anyways if there is an issue but the safety of the baby could be compromised as the one sister has already shown and that in itself is a reason.

































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