Indiana slashes child care voucher reimbursement rates

EVANSVILLE, Ind. (WEVV) — Child care providers around Indiana say they’re devastated after receiving an email on Thursday alerting them of funding cuts.

The Federal Child Care Development Fund is an assistance program that provides vouchers to help low-income families access quality child care.

The Indiana Family and Social Services Administration’s Office of Early Childhood and Out-of-School Learning announced on Thursday that child care providers will see reimbursement rate cuts of up to 35%.

State leaders say this is their way of trying to close a $225 million funding gap created by an unsustainable use of temporary COVID relief funds. They say rate adjustments align reimbursements with actual provider costs and federal regulations, correcting the trajectory set two years ago.

Kasho