According to the First Five Years Fund, more than 30% of working families in the U.S. are unable to access the childcare they need for their young children.
As a result, according to the organization, the national economy loses about $122 billion annually in lost earnings, productivity and revenue.
By several metrics, Indiana ranks worse than the national averages when it comes to the availability and affordability of childcare. That’s why the decision by state officials to cut childcare vouchers is so egregious.
The Indiana Family and Social Services Administration Office of Early Childhood and Out-of-School Learning began slashing reimbursement to childcare providers Oct. 5. The cuts range between 10 and 35% depending on the age of the child, and include an estimated 60% reduction in eligibility for the On My Way Pre-K voucher program.
Although childcare program expansion came with the help of more than $1 billion in federal pandemic aid, advocate say cuts will reverse years of growth and development. Those cuts have already come with consequences. With a substantial number of clients paying for portions of childcare with the state subsidies, Southern Indiana-based Kids Care Academy told the News and Tribune last month it was preparing to shutter its locations in New Albany and Jeffersonville.
Voucher cuts are also affecting local school systems that offer On My Way Pre-k, a program proven to not only assist with childcare but to also provide young minds with an educational boost as they prepare for kindergarten. The hauling back of federal funds for On My Way Pre-K is partially to blame for these reductions, as fewer parents have vouchers to pay for the program.
There are several outcomes from decreasing childcare availability, and they aren’t good. More parents will exit the labor force because they can’t afford childcare. Children will fall behind without access to early learning programs like On My Way Pre K. Some kids will be left on their own while their parents go to work because there aren’t any other options.
Some may choose not to have children because of the costs of childcare.
Short-sighted budget cuts like reducing childcare hurt us all in the form of a reduced labor force and lack of educational growth. Children who fall behind in school often struggle their entire lives to catch up, and many never do. That typically leads to a dependence on government subsidies, which we all pay to fund.
Regardless of what administration was in office, Hoosier lawmakers were long made aware that COVID funds were not sustainable and each one knew the outcome could result in reduced subsidies for programs supported by Child Care Development Funds (CCDF). It’s a lack of priority and planning that flatlined budget proposals for these successful programs and now vulnerable children and parents must suffer. Why would we compromise health and education by not assisting lower income households with childcare costs?
If we can afford to pay for helicopter pads at the governor’s house and vouchers for wealthy parents to send their children to private schools, we can foot childcare for those in need. It may in fact be one of the most pro-life moves our government can make.
© 2025 Community Newspaper Holdings, Inc.