Governor to tap $200M for frozen child care voucher program, enroll 14K kids from waitlist
About 14,000 low-income Indiana children could soon receive vouchers for free and reduced-cost child care under a $200 million proposal announced Tuesday by Gov. Mike Braun.
The administration plans to ask the State Budget Committee to divert $200 million from a state’s fund into a separate account used to cover shortfalls at other agencies, and then use that money to reopen admissions to the Child Care and Development Fund voucher program.
“This investment allows us to open access after 15 months of frozen admissions and puts on a good, sustainable path forward,” Braun said during a press conference. “It marks the start of a sustained commitment to keeping care affordable and giving families long term confidence that the support they count on will be there.”
The announcement comes after more than a year of mounting pressure on Indiana’s child care system. The state froze enrollment in the CCDF voucher program in late 2024 after more than $1 billion in federal pandemic aid that had been used to expand the program ran out. As of February more than 35,000 children were on the waitlist, according to state data.
Since the beginning of 2025, more than 200 child care providers across the state have closed, according to United Way of Central Indiana. The state also cut reimbursement rates this fall for children already in the program. The fallout has reached foster families. WFYI reported earlier this month that some Indiana foster parents are considering giving up their licenses because they can no longer afford infant care without a voucher.
Previously, the Indiana Family and Social Services Administration has said it did not expect to issue new vouchers until 2027 without additional
Then, lawmakers in March passed Senate Enrolled Act 4, which added CCDF vouchers as an allowable use for the state’s Financial Responsibility and Opportunity Growth Fund — potentially freeing up as much as $300 million.
The state will prioritize vouchers for siblings of current voucher holders; infants, toddlers and preschoolers; children of foster and kinship families; children with special needs; homeless children; children of child care workers; and children of Ivy Tech students.
This is a developing story and will be updated.
