The Indiana Family and Social Services Administration (FSSA) announced earlier this week that it will reinstate a waitlist for the Child Care Development Fund (CCDF) voucher program. This move, aimed at addressing funding constraints, will affect new applicants while maintaining support for families currently enrolled in the program (Photo Credit: FSSA).
The CCDF voucher program provides financial assistance to low-income families earning less than 150% of the federal poverty level—about $45,000 annually for a family of four. These families rely on the vouchers to access affordable child care while they work or pursue education.
The FSSA cited substantial growth in the program as a factor behind the decision. Over the past two years, the number of children participating in the CCDF program has grown by more than 30,000, reaching over 70,000 children—an increase of 43% since 2019. This growth stems, in part, from increased eligibility thresholds and federal funds that have bolstered Indiana’s child care system.
“The state’s continued efforts to improve access, affordability and quality of child care programs led us to supporting over 70,000 children with vouchers, allowing more families to work or go to school, and improving the state’s economy,” Courtney Penn, Director of the Office of Early Childhood and Out-of-School Learning, said. “We will continue the important work of ensuring families have access to affordable, high-quality programs near their homes and workplaces.”
The FSSA plans to reassess the waitlist in October 2025, at the start of the next federal fiscal year. Priority for new voucher placements will go to families with incomes below 100% of the federal poverty level, child care workers, and participants in Indiana’s On My Way Pre-K program.
State Rep. Gregory W. Porter (D-Indianapolis) expressed concern over the reinstatement of the waitlist, calling it a result of insufficient and unsustainable funding practices.
“I’m dismayed yet another waitlist is being implemented for vital services, but I can’t say I’m surprised,” Porter said. “The CCDF voucher program supports Hoosiers needing affordable, quality child care. We have parents who want to participate in the workforce, but they can only do so if their children are provided for during their shifts.”
Porter pointed to systemic issues, including “fiscal cliffs,” or the reliance on temporary funding that has since expired. “Since 2020 as part of the COVID-19 response, we received $1.2 billion in one-time federal funding, some of which was used for CCDF vouchers. This is what we call a ‘fiscal cliff.’ We have a funding imbalance between demand and budget. The FSSA apparently awarded these slots with supplemental, one-time funding knowing it wouldn’t last,” he said.
Indiana’s eligibility threshold allows for up to 125,000 families to enroll in the CCDF program, and federal law permits enrollment of up to 212,000 families. However, the FSSA has stated its goal of stabilizing participation at 50,000 families—well below the program’s current enrollment level.
Porter emphasized the need for long-term solutions in Indiana’s budgeting process. “Hopefully, as we start a new budget cycle, we can address these fiscal cliffs that are harming Hoosier families seeking vital assistance. It’s important that the state properly funds programs that support employment and economic competition,” he said.
Indiana’s child care programs have seen significant investment in recent years. Alongside the CCDF program, the On My Way Pre-K initiative has grown from 3,000 children enrolled in 2019 to nearly 8,000 in 2023. The state has also distributed $35 million in grants to expand child care programs and create employer-sponsored child care options.
Families and providers seeking guidance during the transition can contact their local eligibility office through 211 or access support via the SPARK Help Desk at 800-299-1627.