INDIANA – Indiana’s state-funded preschool program, On My Way Pre-K, will drastically reduce its available seats to 2,500 children for the upcoming school year, less than half of its current enrollment, and will also decrease reimbursement rates for participating preschools. The move marks a significant setback for the voucher program, which provides preschool access to 4-year-olds from low-income families.
The Indiana Family and Social Services Administration (FSSA), which manages the program, announced the enrollment cap and narrowed family eligibility in a recent memo. “This decision reverses years of growth in the program, which had expanded significantly with the help of over $1 billion in federal pandemic aid for child care. This temporary funding has now expired, and state lawmakers have not fully replenished the gap.”
FSSA states the cuts were necessary because the program had expanded beyond sustainable levels without a permanent funding source under the previous administration.
On My Way Pre-K, which began as a pilot in 2015 and expanded statewide in 2019, served approximately 6,200 students in October 2024. The program had seen enrollment surge from about 3,500 to 7,900 children between the 2019-20 and 2023-24 academic years, mainly due to federal support.
The state will stop using Child Care and Development Fund (CCDF) money for On My Way Pre-K next year, a funding stream that previously allowed for more generous vouchers. CCDF itself is also strained, with nearly 18,000 children currently on its waitlist.
The reduced funding will result in On My Way Pre-K paying just under $150 per week per child, a substantial cut from rates that previously exceeded $300 per week for many programs. This may lead some child care providers to ask low-income families to cover the difference.
Advocates warn that these cuts will create a “very challenging situation for families and providers,” potentially leading to financial instability for families, increased reliance on public benefits, and an expansion of “child care deserts” as providers may struggle to sustain operations. Indianapolis Public Schools has already announced it will begin charging some families for preschool due to these state funding cuts.
