Across the Heart of Indiana, thousands of families are doing exactly what we ask of them. They are working hard — often juggling multiple jobs — yet still struggling to afford the basics. Housing, childcare, food, transportation, and health care costs continue to rise faster than wages, leaving many families just one unexpected expense away from crisis.
At Heart of Indiana United Way, we focus on supporting these households — often referred to as ALICE (Asset Limited, Income Constrained, Employed). These are families who earn above the federal poverty level but still cannot afford a basic household budget. Across our five-county region, 42 percent of households fall into poverty or ALICE. In Anderson, that figure rises to 55 percent. Many work in essential jobs — retail, manufacturing, health care support, and service industries — that keep our local economy running.
While inflation has affected everyone, lower- and middle-income families face compounded pressure. The costs of health care, childcare, housing, and food have climbed sharply, while wages have lagged behind. At the same time, key supports that once helped families remain stable are shrinking.
Recent federal and state policy changes have increased instability, particularly around health care and childcare. In Indiana, the end of COVID-era Medicaid protections resulted in 371,000 people losing coverage in just one year. More than 30,000 lost coverage not because they earned too much, but due to paperwork barriers. New work requirements and frequent eligibility checks make it especially difficult for people with unpredictable schedules or caregiving responsibilities to remain insured.
When working adults lose health coverage, the effects ripple outward. Families delay preventive care, accumulate medical debt, or miss work due to untreated conditions. Employers face increased absenteeism, health care providers absorb more uncompensated care, and costs rise for the broader community.
Childcare presents another serious challenge. For many families, it is one of their largest monthly expenses — often exceeding in-state college tuition for infant care. Despite record demand, Indiana has frozen new childcare vouchers until 2027. Participation has dropped by roughly 14 percent in one year, nearly 31,000 children are now on a waitlist, and state reimbursement cuts have forced nearly one in five providers to close classrooms.
This is not just a family issue — it is a workforce and economic issue. Parents are leaving jobs because affordable, reliable childcare is unavailable, reducing household income, business productivity, and payroll tax revenue.
The data is clear: high-quality early childhood programs return $7 to $13 for every dollar invested through higher earnings, better outcomes, and reduced reliance on public assistance. Supporting families early is both the right thing to do and smart economic policy.
Stability for working families is an “us” issue. When families struggle, our entire community feels it. The good news is that solutions exist when employers, policymakers, nonprofits, and residents work together.