Early Child Care and Education Legislative Changes

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. 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).

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

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

State Median Income Chart

The chart below provides gross monthly income by family size. The lefthand side shows 85% of State Median Income (SMI), which is the new income threshold for employees of licensed or regulated child care programs. For reference, the righthand side shows 150% Federal Poverty Level (FPL), which is the current income threshold for any family to qualify for CCDF and On My Way Pre-K.

State Median Income (SMI) Chart

150% FPL Chart

*For additional family sizes, please contact your eligibility office.

Regulated providers will submit an employee referral through I-LEAD. Employees will then need to complete an application. Eligibility determination office staff will work with employees to confirm eligibility and process vouchers.

Yes, child care workers are subject to the same eligibility determination rules and processes. This means that their eligibility for services will be reevaluated annually. If their income exceeds 85% of SMI, they will no longer be eligible for the state child care assistance program.

Co-pays are dependent on income and years in the program. Families who receive CCDF with income over 100% FPL have a co-pay. Child care employees receiving CCDF will have co-pays determined in the same way.

The reimbursement process for enrollment fees will not change between newly-eligible staff and other families who receive CCDF.

No, the rules of CCDF will still apply. Children will not be able to be placed in the same classroom as their guardian.

Applications will be processed and vouchers issued on a first come, first served basis by region. It is not guaranteed that every eligible applicant will receive assistance.

No. Through this program, child care employees are applying for CCDF/OMWPK voucher assistance. This program simply allows more child care workers to apply for assistance than would be eligible under regular CCDF eligibility requirements.

Once referred, the eligibility office will contact employees who are required to provide additional documentation. If they complete this process and are approved, program administrators/supervisors will see the completed vouchers in the system. It is important employees make themselves available to receive important information from the eligibility office through this process.

No. It applies to employees at a licensed or regulated child care program who meet the new income threshold.

Yes. It applies to employees at a licensed or regulated child care program who meet the new income threshold.

No. This process simply expands CCDF eligibility to more child care workers. The referral process should be followed for potentially newly eligible employees who would like to receive CCDF.

No. This process is meant to expand CCDF to child care employees who make 85% SMI or below, but who were not previously eligible for CCDF. Anyone over 100% FPL will have a co-pay.

Once approved and using CCDF, a child care employee’s CCDF vouchers are connected to them as an employee, and not to their employer. Should an employee receiving CCDF leaves one child care employer to work for another, their CCDF vouchers will remain in place.

This rule update only applies to licensed child care centers. Other program auspices such as homes, ministries and Legally Licensed Exempt Programs (LLEPs) receiving CCDF may already hire 16- and 17-year-olds per Indiana child care regulations.

Approximately 800 individuals.

July 1, 2024.

As with any hiring decision, providers will need to consider the unique training and resources needed to support younger caregivers in being successful in early child care roles. Younger caregivers will likely have less experience and training in caring for young children, thus will benefit from more training, coaching and support opportunities. This might include expanded orientation and training, mentoring or coaching programs, regular feedback opportunities or other standardized supports.

Programs that hire younger caregivers are required to notify parents of the change and are encouraged to offer information about related training provided to help reassure families.

Per current requirements, a lead caregiver must be at least 18 years old.

Providers are not required to meet the new minimum age requirements. Hiring decisions are at the discretion of the business.

No, the minimum age requirements for educators teaching 3-5-year-olds is remaining the same. These staff members must be at least 18 years old.

OECOSL defines school-age children as between 5 and 15 years of age.

At this time, variances are being issued for providers hiring younger staff members who have not yet completed high school. Once this change takes effect, providers will have more flexibility to hire younger staff members. More details will be shared later.

Public/charter schools may participate in OMWPK and receive a pre-K voucher regardless of Paths to QUALITY™ (PTQ) status or level. Public/charter schools must comply with CCDF provider eligibility standards and will have the option to apply to be either a Legally Licensed Exempt (LLEP) or a Licensed Center facility.

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.

July 1, 2024.

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.

Contracted employees looking for access to affordable, quality child care.

All licensed and regulated providers.

This change is creating a process  to allow substitute teachers to work in the early child care field. It is up to the provider to determine if substitutes should abide by any additional qualifications they have in place for their staff and substitute workforce?

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

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.

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

Interested individuals can follow this work by attending public ELAC meetings. Visit the ELAC webpage to learn more about upcoming meetings.

The new reporting requirements seek to create added information and transparency to support state leaders and legislators in making important decisions regarding state-sponsored child care assistance programs.

Legislation requires the dashboard be published by September 30, 2024.