Indiana Governor Mike Braun speaks ahead of the ribbon cutting to mark the opening of the final interchange at 141st Street as part of the State Road 37 Improvement project on Tuesday, May 26, 2026, at Ed Martin Toyota in Noblesville, Indiana.
Indiana Governor Mike Braun speaks ahead of the ribbon cutting to mark the opening of the final interchange at 141st Street as part of the State Road 37 Improvement project on Tuesday, May 26, 2026, at Ed Martin Toyota in Noblesville, Indiana.
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Indiana eyes changing child care regulations to save money amid voucher crisis

Indiana is looking to change some child care regulations in an effort to reduce costs for businesses struggling to stay afloat amid uncertain funding.

Gov. Mike Braun announced the proposed changes, which include reducing education requirements for caregivers and allowing child care centers to provide mats or sleeping bags instead of cots, in a news release June 4.

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The proposal comes on the heels of a crisis within Indiana’s child care voucher system and a little more than a month after the governor infused $200 million into the Child Care and Development Fund.

“By reducing administrative burdens and unnecessary expenses,” Braun said in a news release, “Indiana is empowering child care businesses to grow and innovate.”

The rule is expected to save child care businesses between $7,688,400 and $8,926,920, according to the Indiana Family and Social Services Administration, while only costing around $98,000 to implement.

The measures are the state’s latest attempt to boost Indiana’s child care system after the Trump Administration suddenly reduced federal CCDF money after a surge in funding during the pandemic.

The quick shift left Indiana without sufficient funds appropriated to subsidize Hoosiers in the program, prompting the state to temporarily stop issuing new vouchers. Though the state has since invested hundreds of millions of dollars to stabilize the program, at least 175 providers have already closed. In addition, 20,000 children will remain on the waitlist even after the state hits its 57,000-enrollment target, according to a recent Indiana Fiscal Policy Institute report.

What does the rule change?

The most significant changes are reduced caregiver requirements and added flexibility with sleeping arrangements and meals.

For example, lead caregivers in Indiana currently need to either hold a Child Development Associate credential or have completed relevant college coursework. Under the proposed rule, lead caregivers would only need a high school diploma or a GED, making Indiana “less stringent than surrounding states,” according to the state’s analysis.

The new rules would also allow child care providers to use mats and sleeping bags for children instead of cots, so long as the sleeping bags aren’t placed on a hard surface. Policies in surrounding states do not mention sleeping bags as an option, according to the state’s analysis. Children would also be allowed to bring lunch under the proposed rule.

It’s unclear what impact these potential changes could have on the quality of child care. Early Learning Indiana, an early childhood education advocacy group that offers child care, said in a statement to IndyStar it supported the effort but stressed the importance of finding the right balance.

“As we continue to review the proposed rules, we must remember what is at stake: the first five years of life is a time when the brain is growing rapidly and up to 90 percent of a child’s capacity to learn is developed,” President and CEO Erin Kissling said. “Strong early childhood systems recognize the critical role of educators in the young child’s development. State regulations should set a standard for basic competencies that strengthen early educators’ ability to foster kindergarten readiness.”

The public can comment on the proposed rule during a comment period that began June 3. The first hearing on the rule will be at 11 a.m. July 6 at Indiana Government Center South, 402 West Washington Street, Conference Room 17. 

Contact breaking politics reporter Marissa Meador at mmeador@indystar.com or find her on X at @marissa_meador.

This article originally appeared on Indianapolis Star: Indiana eyes changing child care regulations to save money amid voucher crisis

Reporting by Marissa Meador, Indianapolis Star / Indianapolis Star

USA TODAY Network via Reuters Connect

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By Marissa Meador, Indianapolis Star | USA TODAY Network

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