Indiana lawmakers announced on May 13 new legislative efforts to increase affordable and accessible childcare for working families. The measures aim to encourage more childcare options, support low-income households, and improve workforce stability.
Expanding access to reliable childcare was a legislative priority during the session. According to the Family and Social Services Administration, capacity at regulated childcare facilities reached 175,073 children as of March 2026, an increase of 1,322 from March 2025 when capacity stood at 173,751 children.
House Enrolled Act 1177 expands the employer childcare tax credit to include companies with up to 500 employees. Businesses can qualify if they operate an employer-run facility or contract with a licensed provider. The credit helps offset costs such as staff training and higher wages for workers. Lawmakers say this is designed to encourage employers “to play a direct role in expanding childcare options for their employees and improving workforce stability.” They add that access to childcare is critical for companies seeking “to attract and retain talent” through participation in these programs.
In addition to HEA 1177, Indiana will invest an additional $200 million in child care vouchers for Hoosier families. The State Budget Committee recently approved more funding for the Child Care and Development Fund (CCDF), a federal program that helps low-income families pay for care so parents can work or attend school or training programs.
The General Assembly also passed Senate Enrolled Act 4 during the current session. This allows Indiana to use funds from the Financial Responsibility and Opportunity Growth Fund (FROG) toward CCDF vouchers. Lawmakers estimate this funding will help resume enrollment by about 14,000 children who need assistance.
State representatives encourage residents with questions about these initiatives or other issues to contact their offices.
