Indiana Legislation Expands Access to Affordable Child Care for Foster Families

Legislation aimed at easing the financial burden of child care for foster families in Indiana has successfully passed through both chambers of the legislature and is now headed to the governor for final approval. House Bill 1248 seeks to expand eligibility for the Child Care and Development Fund (CCDF) program to include foster families, regardless of the number of biological children in the home, as long as income eligibility requirements are met.

The bill, co-authored by State Rep. Julie Olthoff, is designed to provide much-needed support to foster families across the state. “Child care can be a heavy financial burden for any family, but even more so for those who also foster children,” Rep. Olthoff stated. “This legislation is another way Indiana can support foster parents to ensure more Hoosier children can find a loving, permanent home.”

In addition to expanding eligibility for child care assistance, the bill also requires the Indiana Family and Social Services Administration (FSSA) to allocate 200 CCDF vouchers specifically for children placed with licensed foster parents, ensuring that more children can access quality care while in foster care.

According to a report by Sevita, a leading provider of home and community-based specialty health care, there are over 11,000 children available for adoption in Indiana, but only about 4,500 foster homes to care for them. Sevita, which supports individuals with intellectual and developmental disabilities, as well as those in foster care, estimates that expanding access to child care assistance will help ease the financial strain on foster families and provide a more supportive environment for children in need of care.

Nationally, the cost of child care has become a significant financial burden for many families. A recent report by The Guardian highlighted that the average American family pays nearly $1,000 monthly for child care, with costs soaring even higher in states with high living expenses. This financial strain often leads families to make significant personal and financial sacrifices, including taking on debts or forgoing career opportunities.

In response to these challenges, several states have implemented innovative solutions to make child care more affordable and accessible. For example, Michigan introduced the “tri-share” program, which splits child care costs evenly between employers, the state government, and employees. An evaluation of the pilot program in 2022 found that families’ average monthly child care expenses dropped from $716 (15% of their income) to $252 (5% of their income). This model has gained attention from other states, including Indiana, which is exploring similar approaches to support working families.

These state-level initiatives underscore a growing recognition of the need to support families, particularly those involved in foster care, by making child care more affordable and accessible. As Indiana moves forward with its new legislation, it joins a national effort to address the complex challenges of child care affordability and support for foster families.

Rep. Olthoff’s bill, which has garnered bipartisan support, was sponsored in the Senate by Senators Liz Brown, Ed Charbonneau, and Lonnie Randolph. It passed the House with a 95-0 vote on March 24, 2025, and was concurred with the Senate amendments in a vote held on March 27, 2025. The legislation is now awaiting approval from the governor to become law.