HB 1026 is in the Ways and Means Committee and must be heard this week or will be dead.

HB 1026: Child care funding

Requires the state to use a $300 million Financial Growth and Opportunity fund from the 2025 budget to fund the Childcare Development Fund and the On My Way Pre-K programs, which have recently faced cuts.

Indiana will not issue new child care vouchers to impoverished families until at least 2027, Family and Social Services Administration leaders said at a quarterly fiscal meeting. CDDF (infant-3 yrs.) vouchers have decreased from 61,753 to 53,109; OMW (4-5 yrs) vouchers dropped from 6115 to 2124. This is less than prepandemic numbers.

Almost 31,000 low-income Hoosier children are on the waitlist for vouchers.

About 80% of those on the waitlist in September were under the federal poverty line, compared to roughly 60% of current participants. New enrollees must meet narrowed income standards.

The 10-month freeze has crushed enrollment, according to the updated figures. Over 200 childcare providers across Indiana have closed due to lack of funding.

Quality early childcare has proven life long positive effects, 90% of brain development occurs before age 5.

Childcare issues result in an estimated $4.22 billion loss to Indiana’s economy