Indiana Supreme Court reinstates daycare's food program eligibility

The Indiana Supreme Court has ruled in favor of Mt. Zion’s Loving Day Care Ministry, reinstating its eligibility to participate in the federal Child and Adult Care Food Program (CACFP). The court found that the Indiana Department of Education (DOE) abused its discretion when it terminated Mt. Zion’s participation due to alleged food-labeling issues. This decision affects over a hundred children who rely on the daycare for nutritious meals.

The ruling, issued on October 26, 2026, comes after a lengthy legal battle that began when the DOE proposed to terminate Mt. Zion’s participation in the CACFP, which provides meals to children and adults in need. The court’s decision is significant as it highlights the importance of providing adequate opportunities for correction and technical assistance to organizations serving vulnerable populations.

Background

Mt. Zion’s Loving Day Care Ministry is a church-based nonprofit located in Indianapolis, Indiana. It has been part of the CACFP since 1999, providing meals to children from underserved communities. The daycare serves over a hundred children, 95% of whom are African American and come from disadvantaged backgrounds. Bishop Lambert Gates oversees the daycare, with staff members responsible for menu planning and financial management.

The dispute began when the DOE conducted administrative reviews of Mt. Zion in 2015 and 2018, finding noncompliance with meal-pattern requirements. However, the daycare successfully corrected these issues. In 2022, another review found serious deficiencies related to food labeling and meal patterns. Despite Mt. Zion’s efforts to comply, the DOE proposed termination of its participation in the program, citing recurring deficiencies.

After the DOE’s decision, Mt. Zion initiated an administrative appeal, arguing that it had made significant efforts to address the deficiencies. However, the administrative law judge upheld the DOE’s termination decision, leading Mt. Zion to seek judicial review in the Hamilton Superior Court. The trial court reversed the DOE's decision, prompting the DOE to appeal to the Indiana Court of Appeals, which initially ruled against Mt. Zion. The Indiana Supreme Court later granted Mt. Zion’s petition for transfer, leading to the current ruling.

The Ruling

The Indiana Supreme Court ruled that the DOE abused its discretion by terminating Mt. Zion’s participation in the CACFP without allowing further opportunities for corrective action. Justice Goff, who authored the opinion, stated, “The DOE’s blanket policy of rejecting correction proposals by CACFP participants once a deficiency recurs...was arbitrary and capricious.” The court emphasized that the DOE had the discretion to consider additional corrective actions and failed to do so.

The court also found that the DOE did not provide sufficient technical assistance to Mt. Zion, which is required under federal law. The opinion noted that the DOE’s actions were inconsistent and ambiguous, creating confusion about the corrective process. As a result, the court affirmed the trial court’s order to reinstate Mt. Zion’s agreement and eligibility to participate in the CACFP.

Impact

This ruling has significant implications for Mt. Zion and similar organizations that rely on the CACFP to provide meals to children in need. The court’s decision reinforces the necessity for state agencies to offer adequate technical assistance and opportunities for correction before terminating participation in federal programs. It highlights the importance of ensuring that vulnerable populations receive the nutritional support they require.

The ruling may also set a precedent for how state agencies handle compliance issues in the future. By emphasizing the need for discretion and flexibility in addressing deficiencies, the court encourages a more supportive approach to organizations serving disadvantaged communities.

What's Next

While the Indiana Supreme Court’s ruling reinstates Mt. Zion’s eligibility, it is unclear if the DOE will seek further review or appeal the decision. However, the ruling may lead to changes in how the DOE implements its policies regarding the CACFP. Additionally, there may be related cases involving similar issues of compliance and technical assistance in the future.