LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7148 NOTE PREPARED: Mar 18, 2025
BILL NUMBER: HB 1248 BILL AMENDED: Mar 17, 2025
SUBJECT: Child Care and Development Fund.
FIRST AUTHOR: Rep. Rowray BILL STATUS: As Passed Senate
FIRST SPONSOR: Sen. Brown L
FUNDS AFFECTED:XGENERAL IMPACT: State
DEDICATED
XFEDERAL
Summary of Legislation: This bill provides that a household is eligible for assistance under the Child Care
and Development Fund (CCDF) program if the household includes a foster parent at the time of the Office
of the Secretary of Family and Social Services' initial determination regarding the household's CCDF
eligibility. It also requires the Office of the Secretary of Family and Social Services to allocate 200 CCDF
vouchers to be used for a child who is placed with a licensed foster parent.
Effective Date: July 1, 2025.
Explanation of State Expenditures: The bill could minimally increase workload for the Office of the
Secretary of Family and Social Services (FSSA) within its routine administrative functions and should be
able to be implemented with no additional appropriations, assuming near customary agency staffing and
resource levels.
Additional Information: There is currently a waiting list for CCDF vouchers and the requirements of the bill
could extend the time that non-foster care children are on the waiting list. Additionally, On My Way PreK
limited eligibility families receive grants from 20% of the amount appropriated if there is a waiting list for
funds under the CCDF, and 40% if there is not.
In grant year 2024, Indiana received $260.7 M in federal CCDF funding and contributed $101 M in state
funding for a total of $361.7 M. The federal funds are allocated to the states by several formulas based on
historic federal spending, as well as demographic and economic characteristics of the state. The states are
required to provide matching and maintenance of effort funds, and have discretion to transfer funds from the
Temporary Assistance to Needy Families block grant (TANF). The following table provides the source of
funding.
HB 1248 1 CCDF Funding Allocations Grant Year 2024
Federal Mandatory Funds $26 M
Federal Matching Funds $47 M
Federal Discretionary Funds $188 M
State Maintenance of Effort $24 M
State Matching Funds $15 M
TANF Block Grant Transfer $62 M
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Office of the Secretary of Family and Social Services.
Local Agencies Affected:
Information Sources:
Fiscal Analyst: Karen Rossen, 317-234-2106.
HB 1248 2