Indiana Senate Passes Bill to Boost Childcare Voucher Funding

The bill would allow the state to temporarily use $300 million to expand the childcare voucher program and address the waitlist of 33,000 children.

Jan. 30, 2026 at 6:55pm

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The Indiana Senate has passed a bill that would allow the State Budget Agency to use $300 million from a fund to temporarily boost the state's Childcare Development Fund (CCDF) voucher program, which currently has a waitlist of around 33,000 children. The move comes after the state previously announced it would not release any new childcare vouchers through 2026 due to unsustainable growth and lack of funding.

Why it matters

The childcare voucher program is a critical resource for working families in Indiana, but budget constraints have led to a growing waitlist and the closure of some childcare centers. This bill aims to provide a short-term solution to address the immediate crisis, though lawmakers acknowledge it is not a long-term fix for the state's childcare challenges.

The details

The bill would allow the State Budget Agency to dip into a $300 million fund to increase the number of CCDF vouchers available. This could help clear the waitlist of 33,000 children and provide relief to childcare centers that have had to make difficult decisions like closing classrooms due to cuts in funding. However, some lawmakers view this as a temporary Band-Aid, as the state has already lost nearly 200 childcare programs in the past year despite gaining 115 new ones.

  • In October 2025, the state announced it would not release any new childcare vouchers through 2026 due to unsustainable growth and lack of funding.
  • In November 2024, Little Duckling Early Learning Schools had to close four classrooms that were previously full with infants and toddlers.
  • The Indiana Senate passed the bill on January 31, 2026.

The players

Sam Snideman

An official with the United Way of Central Indiana.

Jacqueline Strong

The executive director of Little Duckling Early Learning Schools.

Adam Alson

The director of the FSSA's Office of Early Childhood and Out-of-School Learning.

Rod Bray

The Indiana Senate President Pro Tem.

Shelli Yoder

The Indiana Senate Minority Leader.

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What they’re saying

“The bill could speed that timeline up quite a bit. With the beginning of a new fiscal year in July of 2026, we could begin to see the creation of new CCDF vouchers.”

— Sam Snideman, United Way of Central Indiana (fox59.com)

“I think it could be something that will really help with what we're seeing — the crisis that we're seeing. Regarding a long-term fix, it really just depends on how it's distributed or budgeted.”

— Jacqueline Strong, Executive Director, Little Duckling Early Learning Schools (fox59.com)

“We cannot be so far off from what we enroll versus what our funding is. It just cannot happen again.”

— Adam Alson, Director, FSSA's Office of Early Childhood and Out-of-School Learning (fox59.com)

“We expect that move, if it passes [in the House], and we think it will, to put downward pressure on the daycare costs that everybody is experiencing right now.”

— Rod Bray, Indiana Senate President Pro Tem (fox59.com)

“It is a Band-Aid. It actually doesn't address the fact that we've lost many of our childcare centers already.”

— Shelli Yoder, Indiana Senate Minority Leader (fox59.com)

What’s next

The bill now heads to the Indiana House for consideration.

The takeaway

This bill provides a temporary solution to address the immediate crisis in Indiana's childcare system, but lawmakers acknowledge it is not a long-term fix. The state will need to find sustainable funding sources and policies to support the childcare industry and ensure access for working families in the long run.