Indiana’s Preschool Voucher Program Cuts Enrollment by More Than Half

INDIANAPOLIS — Indiana‘s state-funded preschool program, On My Way Pre-K, will reduce its available seats to 2,500 children for the upcoming school year, marking a decrease of more than half from its current enrollment of over 6,000. This change, announced by the Indiana Family and Social Services Administration (FSSA), is a response to financial sustainability issues.

The program provides preschool access to low-income families, aiming to support 4-year-olds as they prepare for kindergarten. According to a recent FSSA memo, the decision is part of a larger effort to focus resources on families who need assistance the most. To qualify, children must now have a parent or guardian who is working, studying, or in job training, whereas previously, parents seeking employment were also eligible.

“This is going to be a huge setback for Indiana,” said Hanan Osman, executive director of the Indiana Association for the Education of Young Children. “We’ve built a system that is now going to face significant restrictions.”

Previously, the program benefitted from over $1 billion in federal pandemic aid, which is no longer available. Legislative decisions have led to a funding shortfall, prompting the state to stop using Child Care and Development Fund (CCDF) money for On My Way Pre-K. Nearly 18,000 children are currently on the waitlist for CCDF assistance, meaning that funding for other non-pre-K child care services will remain available, but not for this program.

With enrollment expected to drop significantly, preschools may face a rough transition, as they will now receive just under $150 per week, down from rates that previously exceeded $300. This change may compel providers to request additional contributions from families benefiting from vouchers.

Maureen Weber, president and CEO of Early Learning Indiana, emphasized the potential fallout. “The wind-down of federal funds without proper replacement has led to a very challenging situation for families and providers,” Weber remarked.

The consequences of these cuts are already being felt. Indianapolis Public Schools announced it will charge some families for preschool services that were previously free, as state funding becomes more limited.

As the state grapples with these changes, advocates warn that financial instability for families may rise, prompting increased reliance on public assistance and exacerbating the existing shortage of child care options.