About 14,000 additional low-income children could soon nab vouchers for free and reduced-cost child care under a $200 million proposal announced Tuesday by Gov. Mike Braun’s administration.
The administration will ask the State Budget Committee to let it divert $200 million from the General Fund to another account — created to cover underfunding in other agencies — and use the money to reopen admissions for a key child care program.
The Child Care and Development Fund is a state-administered federal program that serves about 43,000 children in Indiana. Families must meet income and work requirements to qualify for the assistance.
“Indiana’s child care voucher system is more than a support program — it’s an economic engine,” Braun said in a news release Tuesday. “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,” he added. “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.”
The program has been closed to new children for more than a year, since enrollment peaked at 69,000 in December 2024. Former Gov. Eric Holcomb’s administration paused sign-ups and opened a waitlist.
Braun’s administration previously said the program would not expand until 2027, citing funding constraints after a dismal revenue forecast. But the latest forecast is significantly rosier.
Shortly after, lawmakers approved Senate Enrolled Act 4, allowing the state to spend money from the $300 million Financial Responsibility and Opportunity Growth fund on CCDF — or to direct more money to the fund specifically for CCDF.
The $200 million move would be subject to State Budget Committee approval. The lawmaker-dominated body next meets Thursday, for the first time since the end of the legislative session.
According to the March revenue report, Indiana is now $653 million ahead of the budget plan.
“We as an administration understand the importance of the CCDF voucher program, and we want to bring this to the State Budget Committee as quickly as possible … in order for child care businesses, families and children … (to) have more clarity around what the future holds,” said Adam Alson, the director of Early Childhood and Out-of-School Learning, which administers CCDF in Indiana.
His office is part of the Indiana Family and Social Services Administration. As of February, almost 35,400 children were waiting for a CCDF voucher, according to FSSA’s child care subsidy dashboard.
The $200 million is projected to bring enrollment back up to 57,000, bringing a lucky 14,000 off the waitlist as soon as May.
Alson said there will be seats set aside for foster and kinship families, followed by slots for special needs and homeless children, as well as for the children of child care workers.
Indiana Public Media has reported that the voucher pause is forcing foster parents to pass on children they otherwise would’ve taken in.
“We don’t want the hindrance on that, for those individuals and those families that are that are looking to do that, to be the cost of child care,” Alson said.
The number of seats set aside per category hasn’t yet been determined, according to Alson.
Siblings of current voucher holders, infants, toddlers and other young children would be prioritized.
If the augmentation is approved at the Thursday meeting, implementation would begin late May.
That timeline is intended to give child care providers time to reopen classrooms and rehire staff. Many providers have constricted their operations or even closed amid the voucher enrollment crunch and deep cuts in voucher reimbursement rates from the state.
Regulated provider capacity has grown from about 170,900 in December 2024 to 175,600 in December 2025, according to FSSA quarterly financial reporting. But the state has lost 64 locations over that year.
Asked how to offer child care providers greater stability, Alson acknowledged the importance of “consistent funding,” as well as reduced regulatory burdens.
The $200 million influx will be paired with a statewide variance waiving state regulations on the mixing of different age groups at the beginning and end of the day, which Alson said increases staffing costs.
About 21,400 children are expected to remain on the waitlist, however.
“This $200 million is the largest one-time investment … in child care in the state’s history,” Alson said. “And it’s a significant step forward in … our acknowledgement of the importance of the child care space to the state of Indiana.”
“I think after we execute this, we’ll have a much better handle on what that demand for this program is as well — and we’ll be in a … more advantageous position going into the next budget cycle to address things like this,” he continued.
The United Way of Central Indiana thanked Braun and the authors of Senate Enrolled Act 4, calling Tuesday’s announcement the “answer thousands … have been hoping for” since the waitlist was reinstated.
“This investment will provide urgently needed stability for the providers who make care possible and will allow tens of thousands of Hoosier children to reap the benefits of safe and healthy learning environments,” said Sam Snideman, the group’s vice president of government and sector relations. “It will also help Indiana make good on its commitments to being a great place to live, work and raise a family.”
Early Learning Indiana President and CEO Erin Kissling also praised state leaders but added that her organization “look(s) forward to working with the administration to identify a long-term solution.”
This article was written by Indiana Capital Chronicle reporter Leslie Bonilla Muñiz.