Indiana would run child care grants for eligible working families

The social services office would run a program that prioritizes child care tuition grants. Children must be under 5 and live in Indiana or have a legally recognized home there. The program is intended for working families. Children must be unable to use state preschool or federal child care aid because of income limits or a waitlist. The listed priorities favor children under 3, then 4-year-olds, from families at or below 85% of Indiana's median income for their family size. Eligible children above that income level follow. Tuition grants would depend on money in the fund. A child's age would be measured on August 1 of the state fiscal year for which a grant is sought.

The office would prioritize grants to help qualifying providers add child care openings or improve quality. Providers may be licensed or registered child care sites with Level 3 or 4 quality ratings, public schools, or accredited private schools. The office must find a shortage of child care and preschool programs in the community. Providers must serve eligible children and follow program rules. Grants would depend on money in the fund.

The office would manage a fund, could hire nonprofits to help run the program, and would report on it each year. The fund would pay for tuition help, provider grants, and nonprofits helping run the program. The fund could receive state money, gifts, and federal grants, but the bill sets no required amount. Money left at the end of a state fiscal year would stay in the fund. If passed, the program rules would take effect July 1, 2026. Reports to the governor and legislative council would start October 1, 2027, and follow each October 1.