INDIANAPOLIS (WISH) — Governor Mike Braun announced a $200 million investment to expand affordable child care across the state on Tuesday.
The funding will be pulled from the Financial Responsibility and Opportunity Growth Fund to broaden access to Child Care and Development Fund vouchers, which help low-income families cover child care costs. The State Budget Committee will review the governor’s decision at its next meeting this coming Thursday.
The governor’s office said the money will pay for 14,000 new vouchers, for a total statewide enrollment of 57,000.
According to a statement from the governor’s office, the rollout of the new $200 million investment will prioritize several groups for enrollment. These include siblings of current voucher holders, infants, toddlers, and children ages 3, 4, and 5.
The state has also created a set of exemptions for children of foster and kinship families, children with special needs, homeless children, children of child care workers, and children of Ivy Tech students.
Funding cuts by the Family and Social Services Administration have impacted families and child care providers statewide.
Temporary COVID-19 relief funding for child care expired in late 2024. In 2025, the Family and Social Services Administration cut provider reimbursement rates as part of a strategy to contain enrollment and curb spending. The state says it will not issue any new vouchers until at least 2027.
More than 300 child care centers have closed statewide since Sept. 1, according to Dr. Hanan Osman, executive director of the Indiana Association for the Education of Young Children. Osman told WRTV's Garrett Bergquist those closures were a direct result of cuts to the CCDF voucher program.
“Finding and affording reliable child care is a huge challenge for many working families. The legislature provided funding flexibility this session to help support the CCDF voucher program and reach additional families. I’m glad to see the administration pursue this additional funding option, and we will continue efforts aimed at reducing child care costs, encouraging more providers and supporting families.”
“Too little, too late. While I’m thankful that Gov. Braun has taken steps to resuscitate our statewide child care program today, the reality is that the system was teetering on the brink of collapse back in Fall 2025 thanks to decisions made by him and Statehouse Republicans.
For many providers, including a beloved one in my hometown of Fort Wayne, doors shut back in November and December.
In December, House Democrats offered an opportunity for House Republicans to reject the redistricting bill and fund CCDF vouchers for a year. They said no. In last year’s budget, Statehouse Republicans prioritized expanding private K-12 vouchers to Indiana’s wealthiest families instead of funding child care and getting our neediest working families off the waitlist.
I say all this not to descend into the partisan bickering that I know Hoosiers are tired of. I say this to let Hoosiers know that the near-collapse of our child care system is an active decision that Statehouse Republicans made time and time again.
The money has always been there – the question has been whether there is the political will to invest in the hard-working, low-income families that keep our state economy running.
