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Indiana Slashing Rates for Child Care Providers to Address $225 Million Funding Gap
Indiana's reimbursement rate cuts target different child age groups, aiming to close a $225 million funding gap and protect voucher access for 55,000 children, officials said.
- On Thursday, the Indiana Family and Social Services Administration's Office of Early Childhood and Out-of-School Learning announced cuts to Child Care and Development Fund voucher reimbursements to address a $225 million funding shortfall, effective Oct. 5 with the first pay date Nov. 6.
- State officials point to the end of temporary federal COVID-19 relief funds and prior rate hikes under former Gov. Eric Holcomb, while the 2025 Legislature earlier this year approved $147.25 million in childcare investments.
- OECOSL provided specific cuts by age group and said reimbursement rates for infants and toddlers drop 10%, affecting about 55,000 Hoosier children receiving CCDF vouchers.
- Some providers may respond by leaving the voucher program, and state officials said the cuts ensure federal compliance; Senate Democrats and Rep. Carey Hamilton urged reversal of reductions affecting licensed child care providers in Indiana.
- With enrollment having peaked in December 2024 at 68,000 children, officials project the Child Care and Development Fund will cost about $400 million in fiscal year 2027 as reimbursements realign.
15 Articles
15 Articles
wibc.com
106.7 WTLCIndiana Slashing Rates for Child Care Providers
WISH-TV STATEWIDE–Child care providers around Indiana will see reimbursement rate cuts of 10-35% as the state’s Family and Social Services Administration tries to close a $225 million funding gap. The sustainability maneuver could push providers to drop out of a low-income child care program, however. “We made this decision to protect the children and families that depend on (Child Care Development Fund) vouchers. There is only one pot of money …
State announces childcare voucher rate cuts to address $225 million funding gap
INDIANAPOLIS The Indiana Family and Social Services Administration's Office of Early Childhood and Out-of-School Learning announced Thursday that it will cut Child Care and Development Fund voucher reimbursement rates to address a $225 million funding shortfall.The cuts range from 10 percent for infants and toddlers to 35 percent for school-age children. Officials say the reductions are necessary to maintain federal compliance and prevent disrup…
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