State Announces $25 Million in Employer Grants to Address Worker Childcare Needs

Application Period Now Open 

For the next month, Hoosier employers can apply to receive funds from the Employer-Sponsored Childcare Fund, part of Gov. Eric Holcomb’s 2023 Next Level Agenda. The Indiana Family and Social Services Administration’s Office of Early Childhood and Out-of-School Learning is managing the effort.

The $25 million program, a partnership with the Indiana Chamber of Commerce, uses a portion of the state’s remaining federal relief funds from the COVID-19 pandemic and is part of the state’s broader efforts to strengthen the early care and education sector.

Grant funding can be used to support employees’ childcare needs in a variety of ways, including sponsoring dependent care assistance plans, providing on-site or near-site childcare or offering childcare tuition benefits. Grants of up to $750,000 will be awarded. The full list of allowable uses and details can be found here.

“Employers know firsthand the critical needs of their employees and are best positioned to partner in their communities to create childcare solutions that will help build and retain their workforce,” says Gov. Holcomb. “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.”

Indiana’s lack of quality and affordable childcare has been an increasing concern for the Indiana Chamber and its members in recent years, making addressing the issue a top priority.

“It’s both an education preparation and workforce development challenge. Kindergarteners who start school without the benefit of a strong early learning foundation often arrive behind their peers and are more likely to struggle throughout their K-12 years. And too many working parents can’t find or afford adequate childcare and face significant barriers to full employment and upward mobility,” offers Indiana Chamber of Commerce President and CEO Kevin Brinegar.

“We are pleased to partner with the state to help spread the word about the available funding to employers of all kinds throughout Indiana.”

To be eligible, employers must be located in Indiana and either a business or corporation employing 20 or more employees, or a group of employers with 20 or more employees. Community-based nonprofits applying on behalf of a group of local employers with a combined total of 20 or more employees are also eligible. Employers must also be willing to contribute 10% of the total amount requested and be able to implement solutions within the first year of the program.

Applications will be accepted through November 22 at 11:59 p.m. For more information and a link to the application, visit the FSSA web site.