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Early childcare providers shutter after state cuts leave hundreds of families without childcare options

With significant cuts to Child Care Development Fund (CCDF) vouchers and reimbursement rates for providers this year, many have had to make the difficult decision to shut their doors
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CASTLETON — Childcare providers across the state have faced significant cuts this year, and that's led to some devastating consequences for many programs.

That includes Adventure Academy on the north side.

"Made it all the way through COVID and all that and then here we are," Lisa Gross said.

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Early childcare providers close due to funding cuts, hundreds left without care

Gross is the owner and director of Adventure Academy. She's operated the childcare center on Craig Street for over nine years.

“I always told my staff to think about the kids in their class as if they were their bosses’ grandkids," Gross said with a laugh. "That's the kind of care we need to make sure we’re taking care of these kids.”

Recent changes from the Indiana Family and Social Services Administration, however, led to issues.

“About a year and a half ago, we were at 95% full… then the state instituted the wait list, and suddenly there were thousands of kids who couldn't get into care… so we dropped down into 80%," Gross explained.

Over the last year, Indiana paused giving new child care vouchers, slashed the number of spots in the state preschool program and cut how much the state pays for care.

“This has left the family to pay the overage of what the vouchers will not cover," Hanan Osman, Executive Director of the Indiana Association for the Education of Young Children (INAEYC), said. "Of course, that led to families saying that, okay, we cannot afford this quality program and pulling their child, so we have seen a lot of closure of classrooms.”

“Food costs are going up, supply costs are going up, rent doesn't change, insurance doesn't change, so there was just no way to stay open while those numbers just kept dropping," Gross stated.

It's not just programs like Adventure Academy that are feeling the hit. Data from the INAEYC shows 197 early child care programs closed statewide between mid-August and the end of November of this year. 57 explicitly stated they closed due to the cuts. Because of all those closures, the state lost 1,187 seats in early childcare classrooms.

“The children are not definitely in an environment that we know is high quality and has high learning experiences," Osman said.

“In the first five years is when their [kids] brain develops more than any other time in their life," Gross said. "And we’re not seeing that as valuable?”

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Both told WRTV the impact will be much more widespread.

“Those programs do not have revenues, are not going to stay in business," Osman explained. "That means the workforce that are bringing their children to these programs, it’s going to affect their attendance, their work.”

“This is about the thousands of families that maybe can’t go get a job or maybe can’t finish their college education because they don’t have anywhere to take their kids. They don’t have any opportunity," Gross stated.

Several democratic state lawmakers have filed legislation to address the childcare voucher situation. However, the bills may not get addressed this year because the 2026 session is not a budget year.


Casey Zanowic is the In Your Community reporter for North Side Indy. She joined WRTV in July of 2025. Casey has a passion for storytelling and is ready to showcase impactful stories that make a difference in her community. Share your story ideas and important issues with Casey by emailing her at casey.zanowic@wrtv.com.