Indiana child care assistance: CCDF vouchers and On My Way Pre-K (2026)

Indiana’s two income lines: 135% of poverty to enter, 85% of SMI to stay

Indiana sets its entry limit as a percentage of the federal poverty level (FPL), not of state median income (SMI). Since April 5, 2026, gross monthly income before taxes must be at or below 135% FPL to get onto the program ⁠¹⁠⁴. That is a cut from December 2024, when FSSA said vouchers served families under 150% FPL ⁠⁹. The entry limit works out to about 41% of SMI. This is our calculation, comparing the 135% FPL chart with FSSA’s 85% SMI chart ⁠⁴⁠⁵.

The second line protects families who are already enrolled. You can keep your voucher at redetermination until income passes 85% of SMI ⁠⁵⁠⁸.

Source: OECOSL income charts ⁠⁴⁠⁵. FSSA counts wages, SSI, TANF, unemployment and child support as income ⁠⁴.

Some income is not counted. This includes earnings of household members under 18 (other than minor parents and emancipated minors), the income of a licensed foster family, and the income of a family with a documented Child Protective Services case. A working parent who is pursuing a first post-secondary degree, apprenticeship or workforce certificate gets $1,250 a month deducted from earned income ⁠⁷. A child must be under 13, or under 19 with documented special needs. The child must also be a U.S. citizen or qualified immigrant, but the parents’ status does not matter ⁠¹⁠⁷.

No hours minimum, but a real service need

Indiana’s policy manual sets no minimum number of work hours. Employment, self-employment (including gig work shown by app screenshots) and on-the-job training all count ⁠⁷. Education counts from high school or GED classes through a first master’s degree, with no time limit ⁠⁷. A new job must start within 16 weeks of the subsidy begin date, and a school program within 13 weeks ⁠⁷. On job search, FSSA’s pages disagree. The manual and the voucher FAQ list job search as a service need at initial application only. FSSA’s 2026 FROG Fund FAQ says applicants must be working, in school or in job training ⁠²⁠³⁠⁷. If you lose your job or leave school while enrolled, you get up to 16 weeks of transitional care ⁠⁷.

Copays that rise with income and with years on the voucher

Indiana’s copay is a weekly fee per family, paid directly to the provider. It is based on household income, family size and how many years the family has been on the program ⁠⁷⁠⁶. Families at or below 100% FPL, and families in On My Way Pre-K, pay nothing. No other copay can be waived ⁠⁷⁠⁸. The fee schedule effective April 5, 2026 sets these rates ⁠⁶:

Scroll the table sideways to see every column.

FSSA turns each percentage into a weekly “fee factor” that is applied to monthly gross income ⁠⁶. Bands above 135% FPL apply only to families already enrolled.

Here is how the factor works for a family of three. At $3,074 a month (the entry limit), a first-year family pays $3,074 × 0.0163, or about $50 a week. In year 10 the same income costs about $100 a week. At $5,500 a month after raises, the fee would be about $243 a week in years 1 to 3. These are our calculations from the fee factors ⁠⁶. The copay is fixed at authorization and owed whether or not the child attends. It is not raised during the 53-week subsidy period ⁠⁷⁠⁸. If a provider charges more than the state reimbursement rate, the family can also be billed the difference, which FSSA calls an “overage” ⁠⁷.

The 2024 federal rule required states to cap copays at 7% of income. Indiana’s CCDF plan listed its maximum as 26% and said the state would seek a waiver while it changed its systems ⁠⁸. The federal rule published May 12, 2026 repealed the 7% requirement ⁠¹⁵. Indiana’s April 2026 schedule still runs from 5% to 26% ⁠⁶.

How the statewide waitlist moves

FSSA re-implemented the waitlist in December 2024, the first since 2018. At that time more than 70,000 children held vouchers ⁠⁹. Every new application goes onto the list. Families who add a sibling to an existing case skip it ⁠¹⁠². The software sorts the list in this order ⁠⁷⁠⁸:

• On My Way Pre-K families enrolling during the pre-K year
• Families with income below 100% FPL
• Children of child care workers
• Everyone else, first come, first served by waitlist date

After Governor Braun added $200 million from the Financial Responsibility and Opportunity Growth (FROG) Fund, OECOSL resumed enrolling in late May 2026. It aims for 14,000 more children, for a projected total of 57,000 ⁠³. Outreach goes first to siblings of current voucher holders, infants, toddlers and preschoolers. It also covers foster and kinship placements, children with special needs, families experiencing homelessness, CPS-involved families, children of child care workers and Ivy Tech referrals. Enrollment runs at about 3,000 children a month ⁠³. FSSA does not publish an expected wait time. To keep your place, you must reconfirm your contact details, job status and income every 90 days ⁠².

Keeping a voucher once you have one

Vouchers are issued for at least 53 weeks ⁠³. Your eligibility office contacts you within 30 days before the subsidy period ends. You then need a signed applicant worksheet, proof of residency dated within 60 days, and a pay stub or school schedule. Miss the deadline and you return to the waitlist ⁠². Indiana pays providers by enrollment. A child can miss 40 days a year, or 20 in a row, before the voucher ends. Warning letters go out at 10, 20, 30 and 35 days ⁠². Before any adverse action, you and your provider must get written notice at least 10 calendar days ahead ⁠⁷.

On My Way Pre-K for 2026-27

On My Way Pre-K is Indiana’s state-funded pre-K. It is a voucher for a 4-year-old to attend an approved public school, center, ministry or licensed home ⁠¹⁰. It is not universal. For 2026-27 it serves only income-eligible families ⁠¹⁰:

• Age cutoff: 4 years old by August 1, 2026, starting kindergarten in 2027-28 ⁠¹⁰.
• Income: At or below 135% FPL, the same limit as CCDF ⁠¹⁰⁠¹².
• Activity: A parent must be working, in school or in job training. Job search no longer counts ⁠¹¹.
• Cost to families: No copay ⁠⁷. The voucher is capped at $6,800 for the year ($147.82 a week for 46 weeks). Families owe any amount a provider charges above that ⁠¹¹.
• Cap: 2,500 children statewide, with part of the slots reserved for Limited Eligibility ⁠¹⁰.

Limited Eligibility vouchers are only available if funding remains. They cover families up to 185% FPL, which is $4,212 a month for three. The parent must be working, in school or in training, or receive SSDI or SSI ⁠¹². These vouchers are fully state funded and cover only the pre-K child, with no before- or after-school care ⁠⁷. Under regular On My Way Pre-K, the voucher covers only the pre-K child. Before- and after-school care and break care must come through CCDF ⁠¹¹.

Reading a Paths to QUALITY level

Paths to QUALITY is Indiana’s four-level rating system. Level 1 means health and safety needs are met. Level 2 means the environment supports learning. Level 3 adds a planned curriculum. Level 4 requires national accreditation ⁠¹³. Providers join voluntarily, and CCDF pays higher rates as a program’s level rises ⁠⁸. To accept On My Way Pre-K vouchers, a program must be rated Level 3 or 4 or hold an approved accreditation ⁠¹⁴.

Applying through Early Ed Connect, step by step

1. Check the entry chart

   Compare your gross monthly income with the 135% FPL column above. Then confirm that each adult in the household works, attends school or is in training ⁠⁴⁠⁷.

2. Gather documents

   You need ID for every household member and proof of each child’s birth and citizenship. Bring a third-party proof of address and pay stubs or a school schedule dated within 60 days of signing the applicant worksheet ⁠⁷. Gig workers can use app screenshots. Self-employed parents use FSSA’s profit and loss form ⁠¹⁠⁷.

3. Apply in Early Ed Connect

   The online application works on a phone, lets you list several children and upload photos of documents, and is available in English and Spanish ⁠¹. Submitting it puts your child on the waitlist, and you get an automated email confirming it ⁠².

4. Answer the 90-day check-ins

   Update your job, income and contact details in Early Ed Connect or with your eligibility office every 90 days ⁠².

5. Finish eligibility when your name comes up

   An eligibility specialist will email or mail you ⁠². The state plan says eligible applications are processed within 30 days of leaving the waitlist ⁠⁸.

6. Choose a CCDF-eligible provider

   Check its Paths to QUALITY level in the Child Care Finder. Your eligibility office will need the provider information page (SF 57222) ⁠¹⁠¹³.

7. Appeal in writing if denied or cut off

   Write to your eligibility office within 10 calendar days of the denial or termination. If refused, appeal to OECOSL’s Assistant Director of CCDF Policy within 15 days. The last step is the Director of Operations, whose decision is final ⁠⁷.

Compare child care assistance in other states or see other help in Indiana.