Indiana Senate Passes Bill to Boost Childcare Voucher Funding

The $300 million plan aims to address the state's waitlist of 33,000 children for childcare assistance.

Jan. 30, 2026 at 7:07pm

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

Why it matters

The childcare crisis in Indiana has forced many centers to close classrooms and turn away families, with 94% of those on the voucher program being working families. This bill aims to provide short-term relief, but long-term solutions are still needed to address the systemic issues.

The details

The bill would allow the State Budget Agency to dip into a $300 million fund to boost the CCDF voucher program, which could speed up the timeline for creating new vouchers. However, Senate Democrats have called this a "Band-Aid" that doesn't address the underlying problem of losing many childcare centers in the state.

  • In October 2025, the FSSA announced it would not release any new childcare vouchers through 2026.
  • In November 2024, Little Duckling Early Learning Schools had to close four classrooms due to cuts in funding.

The players

Indiana Senate

The state legislative body that passed the bill to boost childcare voucher funding.

Family & Social Services Administration (FSSA)

The state agency that previously announced it would not release any new childcare vouchers through 2026 due to unsustainable growth and lack of funding.

Little Duckling Early Learning Schools

A childcare center that had to close four classrooms due to cuts in funding.

Early Learning Indiana

A report from this organization found that Indiana has 1,200 fewer childcare seats available than it did in late 2025.

Indiana Senate President Pro Tem Rod Bray

A Republican senator who expects only part of the $300 million fund to be used to expand the childcare voucher program.

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What they’re saying

“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, with the United Way of Central Indiana (wane.com)

“I think it could be something that will really help with what we're seeing — the crisis that we're seeing.”

— Jacqueline Strong, executive director of Little Duckling Early Learning Schools (wane.com)

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

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

“[In] November 2024, those classrooms were completely full with infants and toddlers, and now, a little over a year and a half later, are empty.”

— Jacqueline Strong, executive director of Little Duckling Early Learning Schools (wane.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 (wane.com)

What’s next

The bill now heads to the Indiana House for consideration.

The takeaway

This bill is a short-term solution to address the childcare crisis in Indiana, but long-term systemic changes are still needed to ensure sustainable funding and support for the state's childcare providers and families.