Cuts Affecting Preschool Voucher Program

(Statewide) – Thousands of Indiana families will find it harder to access state-funded preschool next year as the state makes drastic cuts to its On My Way Pre-K program.

For the 2025-26 school year, enrollment will be slashed by more than half, and stricter income requirements will leave many families who previously qualified without support.

The Indiana Family and Social Services Administration (FSSA) announced that enrollment in the program will be capped at just 2,500 students statewide. This is a sharp decrease from the more than 6,000 children who were enrolled during the current 2024-25 school year.

The changes stem from shifts in funding, primarily the state’s decision to no longer use federal Child Care Development Fund (CCDF) money to co-fund the pre-K vouchers. State officials say the move is necessary to sustain the program and focus resources on families with the greatest need amid new state budget decisions.

The FSSA has outlined several key changes that will impact both families and preschool providers across the state. In addition to the enrollment cap, there is also stricter income limits, voucher caps and monitoring parental activity.

Preschool and childcare providers, who in some counties received significantly higher reimbursement rates, also face financial strain. The cuts may force some to either charge families the difference, which many cannot afford, or reconsider their participation in the On My Way Pre-K program, potentially creating “childcare deserts” in some areas.

Registration for the limited On My Way Pre-K spots is currently open. Families can apply and check their eligibility through the state’s Early Ed Connect portal. To address the significant changes, the FSSA is hosting an informational webinar for families and providers.

  • What: On My Way Pre-K Informational Webinar
  • When: Thursday, June 12, 2025, at 1 p.m. EDT
  • How to Register: Families and providers can find registration information by visiting the official On My Way Pre-K website or by emailing Pre-K-FSSA@state.in.gov.

(Story by Network Indiana)