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Indiana is at a pivotal moment. As our state invests heavily in talent pipelines, innovation corridors and infrastructure to attract new employers and retain top-tier talent, we are ignoring one of the most foundational components of a thriving economy: child care and pre-K education.
Affordable, accessible child care is an economic issue. And yet, policy decisions at the federal level, such as the proposed repeal of the Child and Dependent Care Tax Credit, and at the state level, the elimination of On My Way Pre-K funding, are threatening to dismantle what little support working families have left. Indiana’s business community must see that this is a workforce issue, a competitiveness issue and a long-term economic threat.
The average cost of child care in Indiana hovers around $8,000 per year, outpacing the average price of in-state tuition. For families with more than one child or single parents, this financial burden becomes insurmountable. The Child and Dependent Care Tax Credit, though limited and outdated, has provided some relief for families above the poverty line who don’t qualify for public subsidies but can’t afford private care. Absent a comprehensive replacement, its repeal will deepen a crisis that already undermines our economy.
According to a 2024 study by the Indiana Chamber of Commerce and Early Learning Indiana, our state loses more than $4.2 billion annually due to child-care-related workforce disruptions. That includes $1.17 billion in lost tax revenue and $3.05 billion in costs to employers from absenteeism, turnover and lost productivity. Most critically, nearly 40% of Indiana parents, primarily women, have left the workforce altogether due to child care challenges.
This is not a sustainable equation for a state that prides itself on being a great place to do business.
Too often, child care is treated as a “personal problem” to be solved in the margins of employees’ lives, left to parents to sort out between late-night emails, preschool pickups and waiting lists. But make no mistake: Businesses lose when employees struggle to secure care. Talent gaps grow—productivity dips. Diversity in leadership suffers. And recruitment becomes a costly revolving door.
Indiana employers must move beyond acknowledging the problem and toward active leadership in solving it. This is not about charity or feel-good benefits—it’s about protecting the future of Indiana’s workforce.
Business leaders have an opportunity—and a responsibility—to drive policy and practice change. Here’s where to start.
Use your voice to drive policy change.
Employers are among the most trusted and influential messengers in today’s political and economic landscape. When business leaders speak out, legislators listen.
That means publicly supporting the preservation and expansion of tax credits, such as the Child and Dependent Care Tax Credit, and advocating for state-level investments in early childhood education infrastructure. It also means joining coalitions, testifying at the Statehouse and letting policymakers know that child care isn’t a “women’s issue”—it’s a business issue.
Engage employees in the process.
Effective child care solutions are not one-size-fits-all. The needs of a manufacturing plant workforce differ from those of a remote tech team or a hospital staff working night shifts. Employers must talk with, not at, their employees to understand what support will make a difference.
Create listening sessions, survey your teams and involve parents in the design of benefit programs and pilot projects. The best solutions are co-created, not handed down.
Invest in family-friendly benefits that retain talent.
Yes, onsite child care is ideal—but it’s not the only path forward. Businesses can also:
◗ Partner with local providers to reserve spots or offer discounted tuition.
◗ Offer backup or emergency care benefits.
◗ Provide child care stipends or dependent care flexible spending accounts.
◗ Subsidize part-time or flexible care arrangements.
◗ Extend paid parental leave and flexible scheduling policies.
Every dollar invested in child care support is a dollar invested in workforce retention, loyalty and performance.
Shift the culture, not just the policy.
Policies matter but so does how they’re perceived. Normalize the conversation around caregiving responsibilities. Encourage male employees to use parental leave. Celebrate flexible work arrangements as productivity tools, not accommodations. Make it clear from the top down: Your company values working parents and isn’t afraid to show it.
Build public-private solutions.
Business doesn’t have to go it alone. Collaborate with chambers of commerce, city leaders and school districts to develop shared child care hubs or employer co-ops. When multiple employers pool resources, the burden is lighter, and the impact is greater.
If Indiana wants to lead in advanced manufacturing, life sciences and tech innovation, we must be a place where people want to live, raise families and build careers. That requires a child care ecosystem that is dependable, affordable and equitable.
We cannot continue to recruit companies while silently hemorrhaging workers, especially women, from the labor force. We cannot tout job growth while making it impossible for working parents to sustain full-time employment. And we cannot afford to wait for someone else to fix this.
The cost of inaction already manifests itself in lost productivity, stalled economic mobility and an eroded talent pipeline. But the opportunity for coordinated action across sectors, communities and industries is immense.
Let’s be the state that gets this right. Let’s be the employers that lead from the front.•
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Klitzsch is CEO of Women4Change Indiana.
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