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Early Child Care and Education Legislative Changes

Increased Focus

Early child care received increased focus during this year’s Indiana legislative session as it is part of Governor Eric Holcomb’s 2024 Next Level Agenda. These legislative changes, which represent growing statewide focus on the field, support increased access and affordability to quality early child care programs for Hoosier families, as well as address the industry’s workforce challenges. The Office of Early Childhood and Out-of-School Learning (OECOSL) applauds the growing focus on the early child care and education system, which critically supports the growth of Indiana communities today and into the future.

About the Changes

OECOSL is working to implement these changes that will impact Hoosier families, providers and communities. While some plans are still being finalized, OECOSL is sharing up-to-date information regarding recent legislative changes and related plans to support provider preparedness. The table below outlines each change and implementation timelines.

InitiativeRequired Date
Expand eligibility for On My Way Pre-K and Child Care Development Fund vouchers for employees of licensed child care programs.July 1
Streamline options for K-12 schools to participate in On My Way Pre-K.July 1
Increase the number of unrelated children allowed to be in an unregulated home to 7, with limits on non-related infants.July 1
Allow a family child care home to operate without a license when caring for children for less than 6 hours/day.July 1
Allow contracted support employees at a school to access child care at that school.July 1
Reduce minimum caregiver ages for licensed child care centers, allowing providers to recruit younger workers.September 30
Permit qualified individuals, such as K-12 teachers, to register as substitute educators.September 30

Frequently Asked Questions

Frequently asked questions have been provided below related to each legislative change. Additional FAQs and resources will be added as implementation plans are finalized. Providers that will be directly impacted by upcoming changes will also receive direct communication regarding plans in the coming weeks.

Near-Term Changes for Early Child Care and Education Providers

Expand Eligibility for OMWPK and CCDF for Employees of Licensed Early Child Care Programs

  • What does this change include?

    Senate Enrolled Act 2 expands income eligibility for CCDF and OMWPK for employees of licensed or regulated child care programs to 85% of state median income (SMI) from 150% of federal poverty level (FPL).

  • How does this change benefit the early child care workforce?

    Previously, early child care workers were required to meet the same income eligibility requirements of other categories of workers (i.e., 150% of Federal Poverty Level). With the passage of Senate Enrolled Act 2, the income eligibility threshold for early child care workers has changed to 85% of the state median income, allowing more workers to qualify for child care assistance.

  • Who is impacted by this change?

    Individuals who are employed in licensed or regulated child programs and meet the new income threshold.

  • What is 85% of Indiana median income?

    SMI varies by household size. For example, 85% of Indiana's SMI for a four-person household is approximately $75,814.

  • How do qualifying workers apply for child care assistance?

    Regulated providers will be able to submit an employee referral through I-LEAD. Eligibility determination office staff will work with employees to confirm eligibility and process vouchers.

Reduce Minimum Ages for Caregivers in Licensed Child Care Centers

Streamline Options for K-12 Schools to Participate in On My Way Pre-K

  • What does the change include?

    Senate Enrolled Act 2 extends provider eligibility to public schools, including charter schools, regardless of PTQ level, to provide qualified early child education services, allowing them to participate in On My Way Pre-K and receive a pre-kindergarten voucher.

  • Who is impacted by this change?

    Public schools and charter schools that are accredited to provide early child care and seek to participate in the On My Way Pre-K program.

  • When does the change take effect?

    OECOSL will gather feedback and work directly with stakeholders on implementation.

Increase number of unrelated children allowed in unregulated homes, with limits on non-related infants.

  • What does the change include?

    House Enrolled Act 1102 provides that a family child care home does not have to be regulated if the provider:

    1. Does not receive regular compensation for child care or
    2. Provide care for less than 6 hours/day and no more than 30 hours per week and
    3. Provides care to fewer than 8 children, not including any children who are a relative of the provider, under the custody or guardianship of the provider, or are at least 14 years old and limits the number of children under 12 months of age that may be provided care in an unlicensed child care home.
  • Who is impacted by this change?

    Family child care homes supporting fewer than 8 children who are under the age of 14 and are not related or in the care of the provider.

  • When does the change take effect?

    OEOCSL is working on discovery and an implementation plan and will share more later in the year.

Allow a family child care home to become licensed when caring for children for at least 6 hours/day.

  • What does the change mean?

    House Enrolled Act 1102 revises the definition of child care home to allow providers to serve more children (with restrictions on the number of infants) for more hours without requiring a license. Under the revised definition a child care provider that serves no more than 7 unrelated children with 3 or fewer infants in a residential setting may operate without a license if:

    • They do not receive regular compensation; or
    • They provide care for less than 6 hours/day and less than 30 hours/week.
  • Who is impacted by this change?

    Family child care homes supporting 3 or fewer infants who are under the age of 14 and are not related or in the care of the provider.

  • When does the change take effect?

    OEOCSL is currently working on discovery and an implementation plan and will share more later in the year.

Allow contracted support employees at a school to access child care at that school.

Allow Qualified Individuals to Serve as ECE Substitute Teachers

Broader Legislative Changes that will Stand to Impact the Field Long-term

New Micro-Facility Pilot Program

  • What does the change include?

    The micro facility pilot program establishes a new category of licensed providers that provides child care for 3 – 30 children for at least 4 hours/day. The state will work to develop a regulatory model for these new micro-facilities that incorporate waivers or variances from rules and provides goals that consider increasing the availability of child care, particularly in geographic areas facing a critical shortage of child care and ensuring the health and safety of the children served by micro-facilities. At least three providers will be selected to operate micro-facilities under this pilot program.

  • What does the micro facility pilot program seek to accomplish?

    The micro-facility pilot seeks to address the critical shortage of child care in areas of the state.

  • Who will be impacted by this change?

    New or existing providers that seek to operate a micro- facility and have previously faced regulatory barriers to operating such a facility. Families in areas facing the critical shortage of child care also stand to be impacted by being afforded better access to care.

  • When will this change be implemented?

    The state will develop a regulatory model for the micro facility pilot program by 2025.

  • Where can I learn more about this effort?

    OECOSL will share more about this effort in future town hall events and other provider and community partner channels.

Statewide Compensation Study and Dashboard

New Child Care Subsidy Reporting Requirements for State Agencies

Find Support

Email providerinquiry@fssa.in.gov with any questions that are not addressed in the FAQs. FAQs on this page will continue to be updated as OECOSL receives additional questions.

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