A panel of state officials on Thursday green-lit a deal letting the Indiana Toll Road’s private operator raise rates twice annually — in exchange for a $700 million windfall — and the governor’s request to spend $200 million expanding a frozen low-income child care program.

The Indiana Finance Authority on Tuesday approved a resolution authorizing increases twice a year on all vehicles traveling the 157-mile northern Indiana Toll Road, but it couldn’t take effect without State Budget Committee approval, Public Finance Director James McGoff said.

Class 2 passenger vehicles currently pay $16.21 for a full-length trip, with Class 5 trucks paying $87.49, with tolls rising once a year by 2% — or by the rate of inflation, if it’s greater.

The amendment to the 75-year road lease allows ITR Concession Company to hike rates by 1.5%, or by inflation, every Dec. 31 and June 30.

The increase this December will be 1.6%, according to slides McGoff presented Thursday.

The operator will pay the Indiana Finance Authority, which issues debt and finances projects for the state, a total of $700 million in cash over the next two years.

The money will go to a transportation and infrastructure fund for use in the seven counties through which the road runs — including Lake, the prospective host of a new Chicago Bears stadium.

If the Bears decide to relocate, spending would start in Lake County, on stadium-related infrastructure, McGoff said. In that case, Lake and Porter counties would increase local tourism taxes and the money would be distributed among the other Toll Road counties.

That way, all seven “will share in the modification to the lease,” McGoff said.

If the Bears stay put, the funds will stay in the agency’s account until lawmakers appropriate it.

Despite the money’s connection to the stadium, McGoff said that negotiations on changing the lease began about a year ago — before Hoosier leaders launched their campaign to woo the franchise.

And although the funds will directly benefit the Toll Road counties, McGoff said the state as a whole could benefit indirectly.

“Theoretically, it gives the ability for (the Indiana Department of Transportation) to reprogram their transportation projects to other counties,” he told the committee, “because these towns would be the beneficiary of the funds that are restricted for infrastructure and transportation.”

Rep. Ed DeLaney, D-Indianapolis, thought that was unlikely.

“So the county is going to spend its money … in a way that saves INDOT money? I’m waiting for that day,” DeLaney told reporters. “They’re not going to do that. They’re going to spend it on whatever they think is useful.”

DeLaney — an alternate who served as the only voting Democrat on the committee — unsuccessfully proposed a motion to remove the item from the panel’s agenda for approval, but it was not seconded.

He complained that he had requested the amendment ahead of the Thursday vote but hadn’t received it.

Administration plans to increase budget for child care

Also on the State Budget Committee agenda was Gov. Mike Braun’s request to push $200 million from the state’s General Fund through the Financial Responsibility and Opportunity Growth fund to reopen admissions for a key child care program.

The money would bring about 14,000 Hoosier children off a waitlist of those seeking vouchers. About 21,000 would remain, though.

“The Senate kickstarted this funding discussion by unanimously passing Senate Enrolled Act 4 during the 2026 legislative session, which allows the state to spend money from the FROG fund on CCDF,” said Sen. Ryan Mishler, R-Mishawaka, in a statement Thursday.

Mishler, who chairs the State Budget Committee and authored the new law, said he’s “pleased to see that the Senate’s efforts are paying off, and we will continue to work on this program as we begin to prepare for the 2027 budget session.”

The Child Care and Development Fund currently provides vouchers to about 43,000 needy children, as long as their parents meet income and work requirements. It has been closed to new enrollees for more than a year as officials worked to curb state spending.

About 4,000 seats will be set aside for certain groups. The Family and Social Services Administration, which administers CCDF, released the numbers in slides presented Thursday.

The set-asides include 1,500 slots for foster and kinship care children; 1,000 for special needs kids; 800 for those being served by the Department of Child Services; 300 for homeless kids; 200 for the children of child care workers; and 100 for referrals from Ivy Tech Community College.

FSSA will also prioritize other groups: the siblings of current voucher-holders, infants, toddlers and 3- to 5-year-olds.

The agency will begin enrollments in late May, but the rollout will take months, said Adam Alson, FSSA’s director of Office of Early Childhood and Out-of-School Learning.

That’s because the agency can only process about 3,000 applications a month, per slides. That works out to about 18 weeks, even if the first 14,000 applicants are all determined eligible.

The move will kickstart the Braun administration’s efforts to provide consistent funding, officials said.

“We are funding this for one year, but … it will create a multi-year obligation for the state of Indiana,” Alson told the committee.

He said the line item for early childhood learning in the next two-year budget “will reflect the commitment to maintaining funding for CCDF vouchers, and to increase the baseline from $39 million to at least $239 million” of state dollars, on top of base federal funding.

DeLaney was skeptical child care providers would be able to “bet on that” and make business decisions despite unknown future state funding.

“The governor has every intention of including a sustainable budget for CCDF vouchers in his budget,” State Budget Director Chad Ranney said. “… The governor is certainly committed to continuing this.”

Closing out the waitlist — if everyone on it is eligible — would take about $350 million, according to Family and Social Services Secretary Mitch Roob.

The State Budget Committee agreed, by unanimous voice vote, to adopt its agenda — approving all the items listed.

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