Indiana's New Child Care Laws Aim to Fix Crisis

Indiana has taken a step forward in tackling one of its most pressing care issues—access to affordable, quality child care. But is the progress enough to meet the overwhelming needs of over 850,000 children under the age of 9?

Indiana’s Child Care Crisis: A Deepening Gap

With only 763 licensed child care centers serving nearly a million children, Indiana has become one of the worst-ranked states for child care accessibility. A CNBC study placed Indiana near the bottom in quality of life due to limited child care availability.

The numbers are sobering. According to a 2024 Indiana Chamber of Commerce report, over half of Indiana parents have to skip work or school due to lack of child care options—costing employers $3.05 billion annually through absenteeism and turnover. This state is booming economically,” said Jennifer Sinders from the Chamber. “But all that growth requires people—and people need child care.

Lawmakers Push Reform—But Fall Short on Funding

Democrats had high hopes this legislative session. They pushed for fully funding the Child Care Development Fund (CCDF), a subsidy program for low-income families. But that proposal didn’t make it past Indiana’s Republican-dominated General Assembly. Instead, lawmakers passed smaller-scale legislation aimed at patching the system rather than fixing it outright.

What’s In the New Laws? A Rundown

House Bill 1253 – Expansion with Accountability

Signed into law by Gov. Mike Braun on May 1, this bill introduces:

Flexibility for multi-site child care centers (e.g., YMCA) to operate under one license.

Expanded eligibility for school-based child care beyond children of staff.

Protection for 43 in-home centers (serving 800+ kids) to continue as “class two structures,” if licensed before July 1.

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“This is key to keeping doors open for hundreds of families,” said bill sponsor Rep. Dave Heine, R-Fort Wayne.

Senate Bill 463 – Employer Incentives

Also signed May 1, SB 463 offers tax credits to employers who provide onsite or nearby child care. Sam Snideman of United Way of Central Indiana sees this as a win for workforce retention. “This gives companies a competitive edge. Parents will pick employers that support their child care needs.” This law also expands the Micro-Facility Pilot Program, enabling small-scale child care centers to serve 3 to 30 children in non-residential settings.

House Bill 1248 – Supporting Foster Families

Signed April 10, HB 1248 reserves CCDF funding for foster families taking emergency placements. According to Snideman: “We must support families who are stepping up in crisis situations—and protect the stability of children already facing hardship.” House Bill 1102 – Faith-Based Partnerships. Effective April 3, this bill allows public schools to partner with nonprofit, faith-based pre-K programs. The goal? Increase the pool of providers for Hoosier families.

Will It Be Enough? Experts Say Progress, Not Perfection. While these new laws are seen as incremental wins, they fall short of the universal child care many advocates envision.

We’re not there yet,” said Snideman. “But we’re committed. Every small step gets us closer. The General Assembly is showing interest, and that’s a good sign. Bit by bit, we’re moving toward solutions. For the thousands of Indiana families still scrambling for child care options, the work continues—but for now, there’s reason to hope.