Bray Backs Child Care Expansion

Indiana Expands Child Care Access with New Investment and Employer Incentives

For working families across Indiana, the challenge of finding affordable, reliable child care can be more than a daily headache—it can determine whether a parent is able to stay in the workforce at all. Lawmakers are now taking steps to address that reality, advancing policies aimed at expanding access and easing the burden on Hoosier families.

A Barrier Keeping Parents Out of the Workforce

“Lack of access to affordable child care often keeps Hoosier parents out of the workforce,” said Senator Rodric Bray. “Recognizing this challenge, earlier this year I supported a new law that allows Indiana to invest more dollars in the state’s Child Care and Development Fund (CCDF) voucher program, which helps low-income working families afford child care.”

That issue has become increasingly visible as employers struggle to fill jobs while many parents remain on the sidelines due to limited child care options. Expanding access is not just a family issue—it’s an economic one tied directly to workforce participation.

A $200 Million Investment to Cut Waitlists

Indiana is now poised to make a significant investment to address the problem. The State Budget Committee recently reviewed an additional $200 million for the CCDF voucher program during the current biennium.

“Thanks to that new law, the State Budget Committee recently reviewed an additional investment of $200 million in CCDF this biennium,” Bray said. “This will reduce the number of families who are on the waitlist, allowing them to access child care.”

That funding is expected to ease long-standing waitlists and open the door for more families to secure dependable care—giving parents the opportunity to return to work or increase their hours.

Incentivizing Employers to Step Up

Lawmakers are also encouraging businesses to play a role in the solution. House Enrolled Act 1177 expands eligibility for a state tax credit designed to incentivize employers to provide child care support for their workers.

“Another law I supported this year is House Enrolled Act 1177, which expands eligibility for Indiana’s tax credit for businesses that provide child care to their employees, incentivizing employers to offer child care for their workers,” he said.

The measure broadens what qualifies as a child care expense, including both employer-operated facilities and partnerships with third-party providers. It also allows redevelopment commissions to help fund the construction or expansion of child care facilities, increasing overall capacity.

A Broader Fiscal Approach

These efforts are supported by broader fiscal changes included in Indiana Senate Bill 4, which was signed into law earlier this year. The legislation provides flexibility for the state to direct funding toward priorities like child care while also strengthening oversight of government spending.

By requiring quicker fiscal analysis of executive actions and lowering the threshold for reviewing costly regulations, the law reflects a continued focus on responsible budgeting alongside targeted investment.

Building on Momentum

“These two laws build on Senate Republicans’ leadership in recent years to increase access to child care for families across Indiana,” Bray said. “We will continue pursuing innovative ways to expand access while being as fiscally responsible as possible.”

With new funding and expanded incentives now in place, Indiana is taking a multi-pronged approach to one of the most persistent challenges facing working families—removing barriers, expanding opportunity, and strengthening the workforce in the process.