Governor Announces $200 Million Investment to Expand Child Care
Indiana Governor Announces $200 Million Investment to Expand Child Care
- Indiana to invest $200M in child care vouchers, expanding enrollment by 14,000 to 57,000
- Prioritizes siblings, infants, toddlers, and preschoolers, with exemptions for foster, special needs, and other families
- Funding aims to prevent collapse of child care system, supporting working families and businesses
STATEWIDE–Indiana Governor Mike Braun announced an investment of $200 million to expand affordable child care Tuesday morning.
This week the State Budget Committee will review the Governor’s decision to augment an additional $200 million into the Financial Responsibility and Opportunity Growth Fund (FROG) to expand access to the Child Care and Development Fund (CCDF) vouchers.
“Indiana’s child care voucher system is more than a support program — it’s an economic engine. When parents have access to reliable, affordable child care, they can pursue better jobs, gain new skills, and build stronger futures. And this investment isn’t just for one year. It marks the start of a sustained commitment to keeping care affordable and giving families long-term confidence that the support they count on will remain in place. This investment strengthens our workforce while expanding opportunity for families,” said Braun.
With this funding, the state is to be resume enrolling CCDF voucher-eligible children and increase the number of CCDF enrollments by 14,000 to a projected level of 57,000. The plan is for this investment to go into effect as early as May.
Rollout of this investment will prioritize enrollment of siblings of current voucher holders, infants, toddlers, and 3-, 4-, and 5-year olds. Additionally, a set of exemptions is created for children of foster and kinship families, children with special needs, homeless children, children of child care workers, and children of Ivy Tech students.
Braun said Indiana’s child care system reached a breaking point in late 2024 when temporary federal COVID-19 relief funding expired.
“This put care for more than 55,000 children in jeopardy and created serious challenges for families, providers, and employers. The previous administration had expanded CCDF enrollment using one-time funds without a long-term plan, preparing to remove children from the program as the funding cliff neared,” said Braun.
When Braun took office in January 2025, he said he rejected that course of action. Instead, he partnered with the General Assembly to secure $147 million in new state funding—then the largest single child care investment in state history—ensuring every currently enrolled child could maintain access to care and preventing mass disenrollment.
The Family and Social Services Administration has implemented what they call robust, ongoing anti-fraud safeguards—including a significant increase in site visits and enhanced provider oversight.
House Minority Leader for the Democratic caucus of the Indiana House Phil Giaquinta called this move “too little, too late.”
“While I’m thankful that Gov. Braun has taken steps to resuscitate our statewide child care program today, the reality is that the system was teetering on the brink of collapse back in Fall 2025 thanks to decisions made by him and Statehouse Republicans. For many providers, including a beloved one in my hometown of Fort Wayne, doors shut back in November and December. In December, House Democrats offered an opportunity for House Republicans to reject the redistricting bill and fund CCDF vouchers for a year. They said no. In last year’s budget, Statehouse Republicans prioritized expanding private K-12 vouchers to Indiana’s wealthiest families instead of funding child care and getting our neediest working families off the waitlist. I say all this not to descend into the partisan bickering that I know Hoosiers are tired of. I say this to let Hoosiers know that the near-collapse of our child care system is an active decision that Statehouse Republicans made time and time again. The money has always been there – the question has been whether there is the political will to invest in the hard-working, low-income families that keep our state economy running,” said Giaquinta in a statement.
Indiana Chamber of Commerce President and CEO Vanessa Green Sinders said such a significant investment in Indiana’s Child Care and Development Fund is tremendous news for working families and the state’s economy because no parent should have to choose between a paycheck and safe, reliable childcare.
“This is also welcome action for Hoosier businesses as childcare-related employee turnover and absenteeism costs employers over $3 billion annually. We look forward to partnering with the Governor and General Assembly on a sustainable funding model that keeps more Hoosiers in the workforce,” said Sinders.
