NEW ALBANY, Ind. —

Indiana’s Family and Social Services Administration's Office of Early Childhood and Out-of-School Learning (OECOSL) has announced changes to its child care voucher program, leaving many families and childcare providers worried about the future. Reimbursement rates for child care providers will be reduced, a move the state says is necessary to address a $225 million budget deficit projected for 2026.

Christal Crady, owner of Little Adventures Child Care in New Albany, said the cuts will have a devastating impact on her business.

"This is going to close us down," Crady said. "I won't be able to survive. Made me sick."

Under the new policy, the state will pay providers 10% less for infants and toddlers, 15% less for preschoolers, and 35% less for school-aged children.

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