Indianapolis YMCA needs $750K to help make up for state cuts to child care

The YMCA of Greater Indianapolis launched a fundraiser this week to help foot the bill for child care for low-income families after Indiana slashed vouchers for day care and before and after school care. 

For some children, vouchers were cut by close to half, said Natasha Bellak, vice president of youth development for the YMCA of Greater Indianapolis. The YMCA must either make up the difference or ask families to pay amounts that can add up to around $200 per month, she said.

“You add that up for the month, and that could be groceries, that could be gas money,” Bellak said. If they have to pay more for child care, low-income parents could be forced to make “really tough decisions.”

The nonprofit gets state vouchers to pay for care for about 350 children. It is aiming to raise $750,000 to cover the cost of the cuts for the 2025-26 school year. 

The state announced last month that it would cut Child Care and Development Fund vouchers beginning next week. Known as CCDF, the vouchers provide federally funded subsidies to pay for childcare for low-income parents who are working or going to school.

Indiana used pandemic aid in recent years to expand the state preschool scholarships and CCDF vouchers. But when federal aid ran out, state lawmakers did not fill the gap. 

About 80% of the children who receive vouchers for care provided by the YMCA are in before and after school programs, Bellak said. The other 20% attend early learning programs. 

When it announced cuts to CCDF vouchers, the Indiana Family and Social Services Administration said rates would be reduced by 10% to 35%. But the cuts vary based on the location of the program and age of the children it serves. Bellak said that for some children cuts were higher.

Take MSD of Warren Township Schools, where the YMCA provides before and after school care. Before the cuts, some families were receiving vouchers that paid the full cost of before and after school care, which is $93 per week. Now, the maximum the voucher will cover is $47 per week. If families have to pay for the difference, they will face tough choices and may pull their kids out of the program, Bellak said.

That will harm students, she said.

“They have a safe, engaging place to be, where the staff care about them and are nurturing,” Bellak said. “We're providing healthy meals and homework support, a chance for them to connect with friends and be in a space where they belong.”

In addition to reducing reimbursement rates, the state created a waitlist for CCDF vouchers in December 2024. The Indiana Capital Chronicle reported that Indiana has not enrolled a single new child in the program since.

According to the state dashboard, more than 25,300 Indiana children are on the waitlist for child care assistance.

Contact WFYI Education Reporter Dylan Peers McCoy at dmccoy@wfyi.org.