Here’s how Indiana businesses can get money to expand workers’ child care options

A new, $25 million state program will provide grants to Indiana employers to help them launch or expand child care options for their workers.

Through the so-called Employer-Sponsored Child Care Fund, businesses with 20 or more workers can apply for grants of up to $750,000 through Nov. 22 at childcaregrants.fssa.in.gov.

Applicants can use the money to provide on-site child care, contribute money to pre-tax flexible spending accounts, offer child care tuition discounts or a pay for a variety of other forms of assistance.

Improving access to early childhood care was part of Gov. Eric Holcomb’s 2023 agenda. It’s a system that lawmakers across the aisle agree is not working for anyone, after hearing hours of testimony on the subject this summer at the Statehouse.

Hoosier families struggle to access and afford child care in every Indiana county, and this has ripple effects throughout the state’s educational system, workforce and economy.

“Employers know first-hand the critical needs of their employees, and are best positioned to partner in their communities to create child care solutions that will help build and retain their workforce,” Holcomb said in a news release. “This targeted grant program will boost Indiana’s economy and most importantly empower the state’s youngest learners with the tools they need to be successful in the years to come.”

CEO on child care: Shortage of providers hurts businesses, too. Here’s how to fix it.

The average cost of care per child in Indiana ranges from $8,700 to $11,500 a year, depending on the child’s age, according to a 2021 report from ChildCare Aware. That’s higher than the average in-state tuition for public colleges in Indiana.

And according to the Center for American Progress, 55% of Hoosiers live in a Census tract that’s considered a child care desert, meaning there are either no licensed providers or there are three times more children than slots available with a licensed provider. The inability to find child care can keep parents out of the workforce.

The Indiana Chamber of Commerce is partnering with the state to run the new $25 million program, which is funded with remaining federal COVID-19 relief money. The state and chamber will hold an informational webinar at 11 a.m. Tuesday, Oct. 31. To learn more, visit in.gov/fssa/carefinder/employer-sponsored-child-care-fund.

Contact IndyStar state government and politics reporter Kayla Dwyer at kdwyer@indystar.com or follow her on Twitter @kayla_dwyer17.