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HB 1026

make an appropriation for the replacement of the Richmond Lake dam and spillway, for the general maintenance and repair of other state-owned dams, and to declare an emergency.

2025 Regular Session

Dedicates the entire growth fund from HEA 1001-2025 solely to CCDF voucher and On My Way Pre‑K programs, repealing prior uses to corrections, Medicaid, and child welfare.

Signed by the Governor on 2025-03-13 H.J. 542
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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  • Requires repayment/return: if any of the repealed transfers were already made, the recipient agency must return the amount received to the state comptroller for transfer as directed by this section.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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