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State Invests Additional $23 Million In Child Care Program

Last updated on Tuesday, November 5, 2013

(INDIANAPOLIS) - Indiana is allocating an additional $23 million to child care expenses in fiscal year 2014, a 58 percent increase from the previous year. The money will go toward low-income, working families.

Federal law allows each state to transfer up to 30 percent of its Temporary Assistance for Needy Families (TANF) funds, to the Child Care Development Fund (CCDF) program to help families needing child care.

The Indiana Family and Social Services Administration is making the maximum 30 percent transfer. Through the transfer, the state aims to provide working Hoosier families more access to child care.

"Research shows that parents are much more able to work reliably and work a sufficient number of hours to reach economic self-sufficiency when they have access to quality child care," said Debra Minott, secretary of the Indiana Family and Social Services Administration. "By easing the child care burden on families, we are enabling them to obtain and maintain better employment opportunities."

The FSSA cites studies that show the top barrier to work for low-income families is access to child care. The administration reports 21,000 families with more than 40,000 children receive funding from CCDF. According to the FSSA, the additional 2014 funding will move many children off the waiting list.

In fiscal year 2014, the FSSA predicts it will now serve an average 4,500 additional children every month.

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