The Indiana Family and Social Services Administration has proposed substantial changes to the rules governing childcare centers. Some warn the changes could weaken quality or safety.
As economic researchers who study regulation and occupational entry, we believe the proposal should be judged by a straightforward question: Which requirements protect children, and which primarily make it harder and more expensive to provide care?
The proposal would reduce some education and credential requirements for childcare center directors and lead caregivers. It would not eliminate background checks, CPR and first-aid expectations, safe-sleep rules, abuse-reporting requirements, inspections or basic health and safety training. That distinction matters.
In the Archbridge Institute’s 2026 State Childcare Regulation Index, Indiana ranks 40th in childcare freedom, with first representing the least restrictive regulatory environment.
Economic research has linked tougher regulation with higher costs. Published research has found that education mandates for lead teachers can substantially increase cost, with especially large estimated effects for infant care.
Indiana’s proposed rule would reduce some credential requirements for workers while preserving basic health and safety requirements.
The economic mechanism is straightforward. When regulations make qualified staff more expensive to hire, they also make care more expensive to provide. Providers must absorb those costs, reduce services or pass at least some of them on to families.
According to data from the Economic Policy Institute, the annual cost for infant care in Indiana is $14,471, more than $4,000 more than Michigan and more than $5,000 more than Kentucky. In the same index, Michigan ranks 24th and Kentucky 14th, indicating substantially less restrictive regulatory environments.
The annual cost for infant care is also more than $4,000 higher than in-state tuition at public Indiana universities.
Of course, reducing cost doesn’t matter if child safety is compromised. Child safety should be the first priority. But safety should be measured, not asserted.
Continue reading at The Fort Wayne Journal Gazette.
Edward Timmons, PhD, is Vice President of Policy at the Archbridge Institute. He leads the institute's economic policy strategy, identifying focus areas and disseminating work to key stakeholders and policymakers. His own research focuses on labor economics and regulatory policy; he is regularly asked to provide expert testimony to U.S. states on occupational licensing reform and the practice authority of nurse practitioners. Dr. Timmons received his Ph.D. in economics from Lehigh University and his B.A. in economics and actuarial science from Lebanon Valley College. He publishes a weekly newsletter on Substack with the latest research and policy insights surrounding occupational licensing.
Economics of Flourishing
The Indiana Family and Social Services Administration has proposed substantial changes to the rules governing childcare centers. Some warn the changes could weaken quality or safety.
As economic researchers who study regulation and occupational entry, we believe the proposal should be judged by a straightforward question: Which requirements protect children, and which primarily make it harder and more expensive to provide care?
The proposal would reduce some education and credential requirements for childcare center directors and lead caregivers. It would not eliminate background checks, CPR and first-aid expectations, safe-sleep rules, abuse-reporting requirements, inspections or basic health and safety training. That distinction matters.
In the Archbridge Institute’s 2026 State Childcare Regulation Index, Indiana ranks 40th in childcare freedom, with first representing the least restrictive regulatory environment.
Economic research has linked tougher regulation with higher costs. Published research has found that education mandates for lead teachers can substantially increase cost, with especially large estimated effects for infant care.
Indiana’s proposed rule would reduce some credential requirements for workers while preserving basic health and safety requirements.
The economic mechanism is straightforward. When regulations make qualified staff more expensive to hire, they also make care more expensive to provide. Providers must absorb those costs, reduce services or pass at least some of them on to families.
According to data from the Economic Policy Institute, the annual cost for infant care in Indiana is $14,471, more than $4,000 more than Michigan and more than $5,000 more than Kentucky. In the same index, Michigan ranks 24th and Kentucky 14th, indicating substantially less restrictive regulatory environments.
The annual cost for infant care is also more than $4,000 higher than in-state tuition at public Indiana universities.
Of course, reducing cost doesn’t matter if child safety is compromised. Child safety should be the first priority. But safety should be measured, not asserted.
Continue reading at The Fort Wayne Journal Gazette.
Edward Timmons
Edward Timmons, PhD, is Vice President of Policy at the Archbridge Institute. He leads the institute's economic policy strategy, identifying focus areas and disseminating work to key stakeholders and policymakers. His own research focuses on labor economics and regulatory policy; he is regularly asked to provide expert testimony to U.S. states on occupational licensing reform and the practice authority of nurse practitioners. Dr. Timmons received his Ph.D. in economics from Lehigh University and his B.A. in economics and actuarial science from Lebanon Valley College. He publishes a weekly newsletter on Substack with the latest research and policy insights surrounding occupational licensing.
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