Jan 29, 2026
Indiana Senate approves temporary child care funding INDIANAPOLIS (WISH) — Tens of millions of dollars could be available for Indiana’s child care voucher program under a bill the Senate approved Thursday morning. The budget lawmakers approved last year includes an item, found on pages 13 -14 of the budget bill, called the financial responsibility and opportunity growth, or FROG, fund. The fund’s use is limited to state correctional facility operations, Medicaid and the family and children fund. A financial matters bill the Senate signed off on Thursday adds the Child Care Development Fund voucher program to the list of approved uses. The FROG fund has a total of $300 million in it and any use must be approved by the State Budget Committee. Bill author Sen. Ryan Mishler (R-Mishawaka), who chairs the Senate Appropriations Committee and co-chairs the State Budget Committee, said the move is “a Band-Aid” and lawmakers will have more work to do on the voucher program during next year’s budget negotiations. “It’s a much larger problem and, next year, I will be presenting you with some very large numbers and we will have some very difficult decisions to make,” he said. Dr. Hanan Osman, the executive director of the Indiana Association for the Education of Young Children, told News 8 the vote is welcome news. “We are going to be waiting for the details, and as they say, the devil is in the details,” she said. “It’s going to stop the bleeding we are seeing right now but if we don’t do something about this, maybe in two years, we’ll find ourselves in the same place. So this will temporarily backfill the CCDF funding gap.” Senate President pro tempore Rod Bray (R-Martinsville) said it’s unlikely all $300 million in the FROG fund will be sent to the voucher program. He said the fund will need to cover unforeseen costs in Medicaid and the Department of Correction as well. Sen. Fady Qaddoura (D-Indianapolis) who serves on both the Senate Appropriations Committee and the State Budget Committee, told News 8 money from the FROG fund could stabilize expenses for children who are currently enrolled in the voucher program but the legislation does not address eligibility or reimbursement rates, both of which were cut during last year’s budget negotiations. “All that the bill did is open the fund to potential expenditures for child care services,” he said. “That has not been defined but we welcome the news at least that that fund now is open for such consideration.” Qaddoura said so far, he does not believe the state has pulled any money out of the FROG fund. Osman said the vote shows state lawmakers are listening to the concerns of child care providers. She said she hopes child care providers can use this as a way to get a seat at the table for next year’s budget negotiations. “It prevents immediate harm. It keeps families and providers afloat. It gives lawmakers, we hope, time to craft a permanent solution in future budgets,” she said. “(Providers) are pleased to hear that our policymakers and our legislators are listening to them. Nobody expected Senate Bill 4 would have that amendment (involving CCDF funding) when the amendment was added.” The bill passed the Senate unanimously and now goes to the House for further consideration. Lawmakers have about a month left in the legislative session. ...read more read less
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