Early Child Care and Education Legislative Changes
Increased Focus
Early child care received increased focus during this year’s Indiana legislative session as it is part of Governor Eric Holcomb’s 2024 Next Level Agenda. These legislative changes, which represent growing statewide focus on the field, support increased access and affordability to quality early child care programs for Hoosier families, as well as address the industry’s workforce challenges. The Office of Early Childhood and Out-of-School Learning (OECOSL) applauds the growing focus on the early child care and education system, which critically supports the growth of Indiana communities today and into the future.
About the Changes
OECOSL is working to implement these changes that will impact Hoosier families, providers and communities. While some plans are still being finalized, OECOSL is sharing up-to-date information regarding recent legislative changes and related plans to support provider preparedness. The table below outlines each change and implementation timelines.
Initiative | Required Date |
---|---|
Expand eligibility for On My Way Pre-K and Child Care Development Fund vouchers for employees of licensed child care programs. | July 1 |
Streamline options for K-12 schools to participate in On My Way Pre-K. | July 1 |
Increase the number of unrelated children allowed to be in an unregulated home to 7, with limits on non-related infants. | July 1 |
Allow a family child care home to operate without a license when caring for children for less than 6 hours/day. | July 1 |
Allow contracted support employees at a school to access child care at that school. | July 1 |
Reduce minimum caregiver ages for licensed child care centers, allowing providers to recruit younger workers. | September 30 |
Permit qualified individuals, such as K-12 teachers, to register as substitute educators. | September 30 |
Frequently Asked Questions
Frequently asked questions have been provided below related to each legislative change. Additional FAQs and resources will be added as implementation plans are finalized. Providers that will be directly impacted by upcoming changes will also receive direct communication regarding plans in the coming weeks.
Near-Term Changes for Early Child Care and Education Providers
Expand Eligibility for OMWPK and CCDF for Employees of Licensed Early Child Care Programs
- What does this change include?
Senate Enrolled Act 2 expands income eligibility for CCDF and OMWPK for employees of licensed or regulated child care programs to 85% of state median income (SMI) from 150% of federal poverty level (FPL).
- How does this change benefit the early child care workforce?
Previously, early child care workers were required to meet the same income eligibility requirements of other categories of workers (i.e., 150% of Federal Poverty Level). With the passage of Senate Enrolled Act 2, the income eligibility threshold for early child care workers has changed to 85% of the state median income, allowing more workers to qualify for child care assistance.
- Who is impacted by this change?
Individuals who are employed in licensed or regulated child programs and meet the new income threshold.
- What is 85% of Indiana median income?
SMI varies by household size. For example, 85% of Indiana's SMI for a four-person household is approximately $75,814.
- How do qualifying workers apply for child care assistance?
Regulated providers will be able to submit an employee referral through I-LEAD. Eligibility determination office staff will work with employees to confirm eligibility and process vouchers.
Reduce Minimum Ages for Caregivers in Licensed Child Care Centers
- What does this change include?
Senate Enrolled Act 2 requires rule changes for licensed child care centers to allow for the following:
- 16- and 17-year-olds must be with a lead caregiver at all times but may be included in child and staff ratios and act as child caregivers of school-age children.
- 18-year-olds may serve as lead teachers of infant/toddler classrooms.
- Who is impacted by this change?
This rule update only applies to licensed child care centers. Other program auspices such as homes, ministries and Legally Licensed Exempt Programs (LLEPs) receiving CCDF may already hire 16- and 17-year-olds per Indiana child care regulations.
- How many more potential early child care and education workers will be eligible due to this change?
Approximately 800 individuals.
- When can licensed child care centers begin hiring these age groups?
OECOSL will ensure consistency across programs during the rulemaking process.
- What do early child care programs need to understand or prepare for when hiring younger caregivers within their programs?
As with any hiring decision, providers will need to consider the unique training and resources needed to support younger caregivers in being successful in early child care roles. Younger caregivers will likely have less experience and training in caring for young children, thus will benefit from more training, coaching and support opportunities. This might include expanded orientation and training, mentoring or coaching programs, regular feedback opportunities or other standardized supports.
- Should programs inform families of this change?
Programs that hire younger caregivers are required to notify parents of the change and are encouraged to offer information about related training provided to help reassure families.
- What resources are available to support programs in communicating this change to families?
In the coming weeks, OECOSL will share a communication toolkit with programs to share the change with family audiences. Programs are encouraged to personalize communications.
Streamline Options for K-12 Schools to Participate in On My Way Pre-K
- What does the change include?
Senate Enrolled Act 2 extends provider eligibility to public schools, including charter schools, regardless of PTQ level, to provide qualified early child education services, allowing them to participate in On My Way Pre-K and receive a pre-kindergarten voucher.
- Who is impacted by this change?
Public schools and charter schools that are accredited to provide early child care and seek to participate in the On My Way Pre-K program.
- When does the change take effect?
OECOSL will gather feedback and work directly with stakeholders on implementation.
Increase number of unrelated children allowed in unregulated homes, with limits on non-related infants.
- What does the change include?
House Enrolled Act 1102 provides that a family child care home does not have to be regulated if the provider:
- Does not receive regular compensation for child care or
- Provide care for less than 6 hours/day and no more than 30 hours per week and
- Provides care to fewer than 8 children, not including any children who are a relative of the provider, under the custody or guardianship of the provider, or are at least 14 years old and limits the number of children under 12 months of age that may be provided care in an unlicensed child care home.
- Who is impacted by this change?
Family child care homes supporting fewer than 8 children who are under the age of 14 and are not related or in the care of the provider.
- When does the change take effect?
OEOCSL is working on discovery and an implementation plan and will share more later in the year.
Allow a family child care home to become licensed when caring for children for at least 6 hours/day.
- What does the change mean?
House Enrolled Act 1102 revises the definition of child care home to allow providers to serve more children (with restrictions on the number of infants) for more hours without requiring a license. Under the revised definition a child care provider that serves no more than 7 unrelated children with 3 or fewer infants in a residential setting may operate without a license if:
- They do not receive regular compensation; or
- They provide care for less than 6 hours/day and less than 30 hours/week.
- Who is impacted by this change?
Family child care homes supporting 3 or fewer infants who are under the age of 14 and are not related or in the care of the provider.
- When does the change take effect?
OEOCSL is currently working on discovery and an implementation plan and will share more later in the year.
Allow contracted support employees at a school to access child care at that school.
- What does this change include?
House Enrolled Act 1102 permits contracted employees at public or private schools the ability to access child care programs on school property.
- Who is impacted by this change?
Contracted employees looking for access to affordable, quality child care.
- When does the change take effect?
OEOCSL is currently working on discovery and an implementation plan and will share more later in the year.
Allow Qualified Individuals to Serve as ECE Substitute Teachers
- What does this change include?
Senate Enrolled Act 2 requires rule changes to define a substitute educator as a caregiver type across all categories of regulated child care providers.
- Who is impacted by this change?
All licensed and regulated providers.
- When will this change take effect?
OECOSL will ensure consistency across programs during the rulemaking process. More information to come.
Broader Legislative Changes that will Stand to Impact the Field Long-term
New Micro-Facility Pilot Program
- What does the change include?
The micro facility pilot program establishes a new category of licensed providers that provides child care for 3 – 30 children for at least 4 hours/day. The state will work to develop a regulatory model for these new micro-facilities that incorporate waivers or variances from rules and provides goals that consider increasing the availability of child care, particularly in geographic areas facing a critical shortage of child care and ensuring the health and safety of the children served by micro-facilities. At least three providers will be selected to operate micro-facilities under this pilot program.
- What does the micro facility pilot program seek to accomplish?
The micro-facility pilot seeks to address the critical shortage of child care in areas of the state.
- Who will be impacted by this change?
New or existing providers that seek to operate a micro- facility and have previously faced regulatory barriers to operating such a facility. Families in areas facing the critical shortage of child care also stand to be impacted by being afforded better access to care.
- When will this change be implemented?
The state will develop a regulatory model for the micro facility pilot program by 2025.
- Where can I learn more about this effort?
OECOSL will share more about this effort in future town hall events and other provider and community partner channels.
Statewide Compensation Study and Dashboard
- Why did the governor direct the Early Learning Advisory Committee (ELAC) to study early childhood educators’ and out-of-school time employees’ compensation and accelerate the delivery of and action on rulemaking?
The study aims to deepen the state’s understanding of the current state of Indiana’s early child care workforce and provide insight into ways it can be strengthened to better support Hoosier families and communities.
- Where can I learn more about this effort?
Interested individuals can follow this work by attending public ELAC meetings. Visit the ELAC webpage to learn more about upcoming meetings.
- When will the new dashboard be live and accessible to the public?
Legislation requires the new dashboard be accessible by September 30, 2024.
New Child Care Subsidy Reporting Requirements for State Agencies
- What does this change include?
The state will publish a dashboard providing the following:
- The number of child care subsidies available.
- The average copayment required under each available subsidy.
- The number of children on a wait list for each available subsidy.
- Other key indicators, as determined by the office of the secretary, of the effectiveness of the available child care subsidies in each Indiana county
- What does this change seek to do?
The new reporting requirements seek to create added information and transparency to support state leaders and legislators in making important decisions regarding state-sponsored child care assistance programs.
- When will the new public-facing dashboard be published?
Legislation requires the dashboard be published by September 30, 2024.
- Will providers be required to report new or additional information to the state related to this change?
Find Support
Email providerinquiry@fssa.in.gov with any questions that are not addressed in the FAQs. FAQs on this page will continue to be updated as OECOSL receives additional questions.