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HB 1026

Crimes and punishments; making certain acts unlawful; codification; effective date.

2025 Regular Session Introduced by David Hardin

The bill directs the entire growth fund appropriation to only CCDF vouchers and On My Way Pre‑K, temporarily removing funds from corrections, Medicaid, and child-welfare programs.

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Bill Summary · HB 1026

HB 1026 — Child care funding (Introduced version — Indiana)

Status: Introduced (Dec. 1, 2025); first reading and referred to Committee on Ways and Means
Primary sponsor: Rep. Porter
Citations referenced: P.L.213-2025 (HEA 1001-2025) — Financial Responsibility and Opportunity Growth Fund

Main purpose

To restrict how the Financial Responsibility and Opportunity Growth Fund (the “growth fund”) appropriated in HEA 1001‑2025 (P.L.213‑2025) may be spent — dedicating the entire appropriation from that fund solely to two early‑childhood programs: the Child Care and Development Fund (CCDF) voucher program and the On My Way Pre‑K programmatic funding.

Key provisions

  • Limits use of the total amount appropriated from the growth fund in P.L.213‑2025 so that the budget agency (subject to budget committee review) may use it only to:
    • fund the Child Care and Development Fund voucher program; and
    • fund On My Way Pre‑K programmatic activities.
  • Repeals prior authorized uses that had directed portions of the appropriation to other purposes, specifically amounts used to augment:
    • State correctional facilities operations (Department of Correction);
    • Medicaid assistance (Family and Social Services Administration);
    • Family and children fund (Department of Child Services).
  • Requires repayment/return: if any of the repealed transfers were already made, the recipient agency must return the amount received to the state comptroller for transfer as directed by this section.
  • Effective date and duration:
    • Effective retroactively July 1, 2025.
    • The section expires on July 1, 2027.
    • The bill contains an emergency declaration.

Who is affected

  • Directly: the state Budget Agency, state comptroller, and the agencies that previously received growth‑fund augmentations (Department of Correction, FSSA, Department of Child Services).
  • Indirectly: families and providers served by CCDF vouchers and On My Way Pre‑K (likely increased or protected funding), and programs/agencies that would have received prior augmentations (which would see those amounts reduced or returned).
  • Legislative oversight: the Budget Committee (review role over use by the budget agency).

Fiscal and programmatic impact

  • Shifts budgetary flexibility: moves the full growth‑fund appropriation back to early‑childhood care and pre‑K programs and away from corrections, Medicaid, and child‑welfare augmentations.
  • Near‑term cash‑flow effects for agencies that had already received transfers — they would be required to return funds, which could create administrative and operational adjustments.
  • The bill does not specify dollar amounts in the text; impacts depend on the actual amount appropriated under P.L.213‑2025 and whether transfers already occurred.

Procedure / timeline

  • Retroactive effective date (July 1, 2025) and emergency clause mean the change would apply immediately upon enactment.
  • The provision is temporary (expires July 1, 2027), giving a two‑year window in which the growth fund is dedicated to CCDF vouchers and On My Way Pre‑K.
  • Subject to budget committee review of the budget agency’s allocations from the growth fund.

Notes / considerations

  • The bill redirects a fungible budget resource; practical effects will vary with prior disbursement timing and the amounts already spent by recipient agencies.
  • Administrative steps required: returns to comptroller (if needed), reallocation processes, and any updates to agency budgets and program plans.

Compiled from official sources — confirm details with the bill’s official record.

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