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Ind lawmakers want a $25M adoption fund to remove financial obstacles for families

The northwestern exterior of the Indiana Statehouse.
Brandon Smith
/
IPB News
Indiana currently provides a $2,000 subsidy to families adopting children out of foster care.

Families who adopt children out of foster care in Indiana face potentially significant expenses that the state’s $2,000 adoption subsidy doesn’t cover. State lawmakers want to create a fund to help families cover those costs.

Rep. Julie McGuire (R-Indianapolis) said she wants to make adoptions more accessible by removing some of the financial obstacles that Indiana families face.

“This additional opportunity for financial assistance can help cover extra services, such as additional therapies, counseling or specialized education,” McGuire said.

McGuire’s bill, HB 1503, would put $25 million into an adoption fund. And she said it would also create $18.5 million in tax credits for donations to the fund.

“Just start incentivizing family and donors to give to this fund,” McGuire said.

READ MORE: How do I follow Indiana’s legislative session? Here’s your guide to demystify the process

Join the conversation and sign up for our weekly text group: the Indiana Two-Way. Your comments and questions help us find the answers you need on statewide issues, including our project Civically, Indiana and our 2025 bill tracker.

The tax credit would cover 50 percent of whatever someone donated to the fund.

McGuire added that, by getting more children into more stable homes, the bill could help the state save money in the long term.

The House Family, Children and Human Affairs Committee unanimously approved the bill, sending it to the House’s fiscal panel, the Ways and Means Committee.

Brandon is our Statehouse bureau chief. Contact him at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.
Copyright 2025 IPB News

Brandon Smith

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