14,000 Kids to Gain Care After State Approves $200M Investment

INDIANAPOLIS — Thousands of Hoosier children could soon gain access to affordable child care following a $200 million funding boost approved by the State Budget Committee.

The additional funding targets the Child Care and Development Fund (CCDF), a voucher program designed to help low-income families afford care while parents work or attend school. The move follows the passage of Senate Enrolled Act 4 during the 2026 legislative session, which granted the state the authority to augment the program’s budget.

State Representative Jeff Thompson (R-Lizton), a co-sponsor of the legislation, estimates the investment will allow the state to resume enrollment for approximately 14,000 children currently waiting for assistance.

“Many parents rely on child care so they can work, further their education and financially support their families,” Thompson said. “Having access to reliable and affordable child care is essential to building our workforce and communities. This additional funding will give more Hoosiers who need it most the ability to pursue their goals.”

The CCDF program already assists about 43,000 children across Indiana. New enrollments will prioritize:

Siblings of current voucher holders.
Infants and toddlers (ages 3-5).
Vulnerable populations, including children in foster or kinship care, those with special needs, and children of Ivy Tech students or child care workers.

The funding spike is part of a broader push by the General Assembly to address Indiana’s “child care deserts.” State Representative Elizabeth Rowray (R-Yorktown), who has championed expanded eligibility since 2025, says the investment is a win for the state’s economy.

“Expanding access to child care is a direct way we can support working Hoosier families and strengthen our state,” Rowray noted. “This investment will help more parents stay employed while ensuring children have access to safe, high-quality care.”

Beyond direct vouchers, lawmakers also advanced House Enrolled Act 1177, which expands tax credits for businesses that offer child care options to their employees.

State data indicates that these efforts are beginning to move the needle; regulated child care capacity has risen to 174,400 spots statewide over the last year. Families looking to check eligibility or find resources are encouraged to visit the Indiana Family and Social Services Administration website at in.gov/fssa.