INDIANA— Lower-income families in Indiana will look for alternative ways to stretch their grocery budgets through the summer of 2027. The Indiana Family and Social Services Administration (FSSA) announced that the state will opt out of the federal SUN Bucks program for the 2027 cycle, marking the third consecutive year the state has chosen not to participate.
The SUN Bucks program, formally known as Summer EBT, provides eligible families with a one-time benefit of $120 per student to purchase groceries during the summer months. The initiative is designed to fill nutritional gaps when children lose access to free or reduced-price breakfasts and lunches provided during the school year.
State Officials Point to Economic Strength and Existing Alternatives
Indiana previously implemented the SUN Bucks program in 2024, distributing grocery benefits to more than 660,000 children across the state. However, state leadership subsequently chose to step away from the program in 2025 and 2026.
In a statement defending the choice for 2027, an FSSA spokesperson explained that a robust economy has shifted the state’s welfare strategy.
“…With our economy now stronger…the SUN Bucks program is no longer necessary. Families continue to have access to well-established summer meal options that reliably support children when school is out…,” the FSSA spokesperson said.
State officials have previously pointed to the Summer Food Service Program—which operates traditional walk-in meal sites at parks, community centers, and schools—as the preferred mechanism for supporting food-insecure children.
Democrats Criticize Decision Amid Historic State Surplus
The decision sparked immediate pushback from legislative Democrats, who slammed the move as a failure to address ongoing childhood hunger. Critics point out that nearly half of all students in Indiana rely on free or reduced-price school lunches during the academic calendar.
“Quite frankly, that need doesn’t stop when school is out of session,” State Representative Maureen Bauer (D-South Bend) said. “I think it’s an absolute failure of leadership. There are going to be gaps in the system if we leave that to local districts to continue feeding families in the summer.”
The political debate is further magnified by Indiana’s recently released year-end financial report. State fiscal officials revealed that Indiana concluded its latest fiscal year with a massive $1.86 billion budget surplus and roughly $4 billion sitting in cash reserves.
Opponents argue that the state’s financial abundance invalidates previous arguments against the program. When Indiana initially opted out of the 2026 program, FSSA Secretary Mitch Roob estimated it would cost the state an additional $5 million to $7 million in administrative expenses to implement the system, declaring it too expensive. While the federal government covers the full cost of the actual food benefits, participating states are required to split the administrative overhead evenly.
“The state, our coffers, our bank accounts should not be flush with money when refrigerators across Indiana are not filled with nutritious food,” said Indiana Senate Minority Leader Shelli Yoder (D-Bloomington).
Without the automated electronic grocery transfers provided by the SUN Bucks cards, anti-hunger advocates are advising families to utilize the Indiana 211 database to locate localized summer feeding sites in their communities.
