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By Leslie Bonilla Muniz
Indiana Capital Chronicle
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.
“Every voucher represents a working parent that wants to take a step forward for both their lives and then also for the next generation of Hoosier lives here,” said Adam Alson, the director of Early Childhood and Out-of-School Learning, which administers CCDF in Indiana.
“This is not just a social service program,” Alson added. “This is an economic engine that supports Indiana’s workforce and the state’s long-term economic future.”
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,” Alson told the Capital Chronicle.
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 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. 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, one-year 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.
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The Indiana Capital Chronicle is an independent, nonprofit news organization dedicated to giving Hoosiers a comprehensive look inside state government, policy and elections. The site combines daily coverage with in-depth scrutiny, political awareness and insightful commentary.
