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For many Hoosier families, finding reliable and affordable child care remains one of the biggest challenges they face. Parents need child care to stay in the workforce, employers depend on it to fill open positions and providers continue working to meet the growing demand. Across the state, access to child care affects nearly every aspect of our communities.
Indiana’s child care challenges cost the state more than $4.2 billion in annual economic activity, including significant productivity loss for employees and businesses. When parents are forced to miss work or leave jobs due to care disruptions, it creates ripple effects across our economy. For many Hoosier families, this is not just a household issue — it directly affects their financial stability and employment.
During the 2026 legislative session, we worked on practical solutions to expand child care access while supporting working families and local businesses.
One important step forward was House Enrolled Act 1177, which encourages greater employer involvement in child care. The new law expands eligibility for Indiana’s employer child care tax credit to businesses with up to 500 employees. Companies can qualify for the credit if they operate a child care facility or partner with a provider to offer services for their employees.
The tax credit helps offset costs related to facilities, staff training and employee wages. By making these investments more achievable, employers are better positioned to support their working parents while strengthening Indiana’s workforce. HEA 1177 also gives local redevelopment commissions additional tools to encourage the construction or expansion of child care facilities, helping them address local shortages and invest in long-term solutions.
Through Senate Enrolled Act 4, we worked to provide additional funding for Indiana’s Child Care and Development Fund voucher program, which helps low-income families afford care while parents work or pursue education and training opportunities. Under this new law, the State Budget Committee recently approved an additional $200 million dollars to support the CCDF voucher program and reach up to 14,000 additional Hoosier children.
We also supported efforts to reduce unnecessary barriers for home-based child care providers. During the 2024 legislative session, we passed House Enrolled Act 1102, which strengthens protections for licensed home-based providers operating in residential settings, ensuring they can continue serving families. These providers play an important role in many communities, especially in rural areas where options may already be limited. A new law passed this year, House Enrolled Act 1152, ensures that HOAs can’t restrict home-based child care so long as state safety rules are met.
Reducing regulatory burdens on child care providers will help increase supply and ultimately drive down costs for families. Over the last year, capacity at state regulated child care facilities has increased to about 175,000 children.
Expanding child care access is not a one-size-fits-all issue, and we need everyone to come to the table to find solutions. Supporting working parents and ensuring children have safe, reliable and affordable care options remain important priorities as we continue looking for responsible ways to strengthen opportunities for Hoosiers across our state.•
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Indiana Rep. Ben Smaltz, R-Auburn, represents House District 52, which includes all of DeKalb County and portions of Noble and Steuben counties.
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