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Lawmakers returned to the Statehouse last week to begin considering hundreds of bills that have been introduced in the House and Senate. A few have already started winding through the long legislative process, which requires a bill to be approved in the same form by the House and Senate to go to the governor for consideration. Others are just at the starting line, and most won’t make it to the finish.
IBJ is watching key bills that could impact the state’s economic development, health care and workforce efforts, and following developments in legislation related to hot topics including property taxes and Medicaid. And of course, we’ll have our eye on the budget bill, which will determine state spending for fiscal years 2026 and 2027 and will likely be the landing place for many issues related to taxes and spending.
Republican Gov. Mike Braun, who was inaugurated this week, is lobbying to fulfill several major campaign promises related to property taxes, universal school vouchers and health care costs.
Here are some of the bills we’ll be watching during the session, which is expected to adjourn at the end of April.
Economic development
After eight years of former Gov. Eric Holcomb’s development-focused tenure, Braun—an entrepreneur and former CEO—wants a greater focus on entrepreneurship and small businesses.
- Provides a sales tax rebate to incentivize projects that enhance tourism and allows for the creation of tourism improvement districts
- Author: Rep. Michael Karickhoff, R-Kokomo
- Last action: Introduced Jan. 9
- Awaiting: Hearing in House Government and Regulatory Reform Committee
- Creates the Office of Entrepreneurship and Innovation, which would develop and administer programs to support small business, entrepreneurship and innovation
- Author: Rep. Jake Teshka, R-North Liberty
- Last action: Introduced Jan. 8
- Awaiting: Hearing in Commerce, Small Business and Economic Development Committee
- Prevents the state from signing agreements with companies that are majority-controlled by citizens or residents of adversary nations or are headquartered within one
- Author: Rep. Craig Haggard, R-Mooresville
- Last action: Introduced Jan. 8
- Awaiting: Hearing in Judiciary Committee
- Establishes parameters for what agricultural land could be included in an economic revitalization area
- Author: Sen. Spencer Deery, R-West Lafayette
- Last action: Introduced Jan. 8
- Awaiting: Awaiting hearing in Senate Tax and Fiscal Policy Committee
- Requires the governor to terminate economic development deals with companies or firms based in an adversary country
- Author: Sen. Mike Bohacek, R-Michiana Shores
- Last action: Introduced Jan. 8
- Awaiting: Hearing in Senate Homeland Security and Transportation Committee
- Creates an Indiana-Ireland commission to advance trade relations
- Author: Rep. Timothy O’Brien, R-Evansville
- Last action: Expected to be introduced Jan. 21
- Awaiting: Assignment to a committee
Indiana Economic Development Corp.
The IEDC has been developing the LEAP Research and Innovation District in Boone County, but critics—including several lawmakers and, at times, Braun—have questioned the transparency around and cost of the land deals used to create the district, possible projects to bring water to the site and the infrastructure development needed to make the area suitable for bit projects. Several bills address LEAP.
- Designates an ombudsman or a state employee to investigate and resolves complaints related to the IEDC, requires the IEDC board to include two nonvoting legislative members, and requires the IEDC to establish a dashboard with information about economic incentives and compliance that is more accessible to the public
- Author: Sen. Spencer Deery, R-West Lafayette
- Last action: Introduced Jan. 13
- Awaiting: Hearing in Senate Commerce and Technology Committee
- Requires two lawmakers be appointed to the IEDC board and dedicates 5% of IEDC funding for fiscal years 2026 and 2027 to be used for economic development projects located in counties with a population of less than 50,000 (similar to Senate Bill 251)
- Author: Rep. Matt Commons, R-Williamsport
- Last action: Introduced Jan. 13
- Awaiting: Hearing in House Government and Regulatory Reform Committee
Workforce
Over the past few years, state leaders have overhauled the state’s high school curriculum and graduation requirements to prioritize career coaching and alternative paths to higher education. The state has also been working to boost training and certificate programs for young and adult learners.
- Establishes a reemployment skills training pilot program for those on unemployment benefits
- Author: Sen. Liz Brown, R-Fort Wayne
- Last action: Introduced Jan. 13
- Awaiting: Hearing in Senate Education and Career Development Committee
- Reduces the maximum time a person is allowed to be on unemployment benefits by almost half
- Author: Sen. Scott Alexander, R-Muncie
- Last action: Hearing in Senate Pensions and Labor Committee
- Awaiting: Committee vote
- Prohibits an employer from hiring or contracting with an undocumented immigrant
- Author: Rep. Jim Lucas, R-Seymour
- Last action: Introduced Jan. 13
- Awaiting: Hearing in House Employment, Labor and Pensions Committee
Data centers
Indiana has become fertile ground for tech companies to build massive data centers, with four major investments totaling more than $14 billion announced in the last year. Those data centers are filled with computers, servers and cooling systems that run around the clock and use huge amounts of electricity, prompting concerns about the centers’ impact on power supply.
- Prohibits a foreign company from building a data center in Indiana without an electricity usage study and requires the project to generate its own electricity
- Author: Sen. Eric Koch, R-Bedford
- Last action: Introduced Jan. 13
- Awaiting: Hearing in Senate Utilities Committee
- Requires data center developments to provide the Indiana Utility Regulatory Commission with quarterly reports about electricity usage
- Author: Sen. J.D. Ford D-Indianapolis
- Last action: Introduced Jan. 8.
- Awaiting: Hearing in Senate Utilities Committee
Child care
Child care—and the lack of available and affordable options—has been plaguing families in Indiana and across the country. Business leaders now worry the price and lack of options will prevent new workers from moving to the state and remove others from the workforce.
- Alters the definition of a child care home or child care center so caretakers can have no more than three children under a year old and provide child care for less than 10 consecutive days, excluding weekends and holidays. Establishes a license category for multi-state child care centers that have one owner.
- Bill author: Rep. Dave Heine, R-Fort Wayne
- Last action: Introduced Jan. 9.
- Awaiting: Hearing in the House Family, Children and Human Affairs Committee
- Allows a child care provider to continue receiving voucher payments until a final decision about their license or eligibility is no longer in good standing.
- Author: Rep. Ethan Manning, R-Logansport
- Last action: Introduced Jan. 13.
- Awaiting: Hearing in the House Family, Children and Human Affairs Committee
- Adds employee training, scholarship programs and compensation for employees with a higher level of training to permitted uses of funds for the employer child care expenditure tax credit; also sets staff ratios and maximum group sizes based on certain age ranges in licensed child care centers
- Author: Sen. Ed Charbonneau, R-Valparaiso
- Last action: Introduced Jan. 13.
- Awaiting: Hearing in Senate Health and Provider Services Committee
- Establishes a fund to incentivize employers to contribute to the child care costs of the employer’s employees
- Bill author: Rep. Wendy Dant Chesser, D-Jeffersonville
- Last action: Introduced
- Awaiting: Hearing in the House Family, Children and Human Affairs Committee
Indianapolis
The capital city is a demographic and political outlier in Indiana sometimes causing the Republican supermajority to target legislation toward conflicting priorities and initiatives. But also, as the state’s largest city, some legislation impacts its government and residents more than others.
- Gives power to the attorney general to bring actions against towns, cities and counties that have an ordinance prohibiting public camping but have a policy not to enforce it
- Author: Sen. Aaron Freeman, R-Indianapolis
- Last action: Introduced Jan. 8
- Awaiting: Hearing in Senate Local Government Committee
- Allows a court to order an expungement in cetain eviction cases automatically
- Author: Sens. Liz Brown, R-Fort Wayne; Greg Taylor, D-Indianapolis; and Mike Bohacek, R-Michiana Shores
- Last action: Amended and passed by the Senate Judicary Committee
- Awaiting: Consideration by full Senate
- Establishes a special prosecutor unit, prosecutor review board and public prosecution fund, in part to investigate whether prosecuting attorneys are “noncompliant” with state laws. Similar legislation has previously been used to target Marion County Prosecutor Ryan Mears.
- Author: Rep. Chris Jeter, R-Fishers
- Last action: Introduced Jan. 21
- Awaiting: Hearing in House Courts and Criminal Code Committee
- Increases the penalties for street takeovers, which are most prevalent in Marion County. Specifically, the legislation would make “spinning” a Class B misdemeanor.
- Authors: Sens. James Tomes, R-Wadesville; Aaron Freeman, R-Indianapolis; and Rick Niemeyer, R-Lowell
- Last action: Hearing in House Corrections and Criminal Law Committee
- Awaiting: Committee vote
Taxes
Braun and legislative leaders have prioritized changes that would reduce property taxes and could have a significant impact on local government spending.
- Enacts parts of Gov. Mike Braun’s property tax plan
- Author: Sen. Travis Holdman, R-Markle
- Last action: Introduced Jan. 14
- Awaiting: Hearing in Senate Tax and Fiscal Policy Committee
- Allows a county to establish a property tax payment deferral program
- Authors: Sens. Linda Rogers, R-Granger; Travis Holdman, R-Markle and Brian Buchanan, R-Lebanon
- Last action: Introduced Jan. 14
- Awaiting: Hearing in the Senate Tax and Fiscal Policy Committee
- Requires a school referendum to take place during a primary election conducted in a general election year (rather than during a primary or municipal election)
- Authors: Sens. Brian Buchanan, R-Lebanon; Mike Gaskill, R-Pendleton; and Linda Rogers, R-Granger
- Last action: Introduced Jan. 14
- Awaiting: Hearing in the Senate Tax and Fiscal Policy Committee
- Amends the formula that determines how much property tax revenue a county can collect. The formula would no longer be uniform statewide but tailored to each county based on four fiscal metrics.
- Author: Sen. Scott Baldwin, R-Noblesville
- Last action: Introduced Jan. 14
- Awaiting: Hearing in the Senate Tax and Fiscal Policy Committee
- Increases the acquisition cost threshold for the business personal property tax exemption from $80,000 to $160,000
- Authors: Sens. Aaron Freeman, R-Indianapolis, and Chris Garten, R-Charlestown
- Last action: Introduced Jan. 13
- Awaiting: Hearing in the Senate Tax and Fiscal Policy Committee
- Increases the cigarette tax from $1 to $2
- Author: Rep. Elizabeth Rowray, R-Yorktown
- Last action: Introduced Jan. 9
- Awaiting: Hearing in House Ways and Means Committee
- Provides sales tax exemptions for feminine hygiene products and adult diapers
- Author: Rep. Mark Genda, R-Frankfort
- Last action: Introduced Jan. 8.
- Awaiting: Hearing in House Ways and Means Committee
- Continues to decrease the adjusted gross income tax rate annually until it reaches 2.70% for tax year 2032. The 2025 tax rate is 3.0%.
- Author: Sen. Travis Holdman, R-Markle
- Last action: Introduced Jan. 13
- Awaiting: Hearing in House Ways and Means Committee Jan. 21
Health
Reducing the cost of health care is a major priority for policymakers. And the debate comes as the state’s Medicaid costs continue to balloon, making the low-income health insurance program a budgetary concern.
- Addresses the use of presumptive eligibility, which offers temporary health coverage for low-income people not yet receiving Medicaid. Reels in the Healthy Indiana Plan, or HIP, by applying an enrollment cap, coverage limits and work requirements.
- Author: Sens. Ryan Mishler, R-Mishawaka; Chris Garten, R-Charlestown; and Ed Charbonneau, R-Valparaiso
- Last action: Hearing in Senate Appropriations Committee
- Awaiting: Committee vote
- Enacts a range of measures to increase transparency
- Author: Rep. Brad Barrett, R-Richmond
- Last action: Introduced
- Awaiting: Hearing in House Insurance Committee
- More closely polices nonprofit hospitals and what they charge for services. Says that if charges at a nonprofit hospital exceed 200% of that rate at the time of the charge, the hospital would face forfeiture of its state nonprofit status.
- Author: Rep. Martin Carbaugh, R-Fort Wayne
- Last action: Introduced
- Awaiting: Hearing in Public Health Committee
- Creates work requirements for some Medicaid recipients
- Author: Rep. Harold Slager, R-Schererville
- Last action: Introduced Jan. 8
- Awaiting: Hearing in Public Health Committee
- Installs measures to push insurers and related financial officials to act in the best financial interests of their clients
- Author: Sen. Justin Busch, R-Fort Wayne
- Last action: Introduced Jan. 14
- Awaiting: Hearing in Senate Health and Provider Services Committee
- Requires Medicaid coverage for the treatment of obesity, including medication approved by the FDA for weight management
- Author: Rep. Robin Shackleford, D-Indianapolis
- Last action: Introduced Jan. 8.
- Awaiting: Hearing in House Public Health Committee.
Water policy & utilities
The state’s management of its natural resources and energy systems has risen to public consciousness thanks to questions about water for the LEAP District and debates about electricity for data centers.
- Requires the leaders of projects that will move significant amounts of water from one water basin in the state to another to obtain a permit from the Indiana Department of Natural Resources
- Author: Sen. Eric Koch, R-Bedford
- Last action: Hearing in Senate Utilities Committee
- Awaiting: Committee vote
- Create a two-year task force to study water regulation and installs a moratorium to limit significant water withdrawal projects and pipelines that would transfer water out of the Wabash region for two years
- Author: Sen. Spencer Deery, R-West Lafayette
- Last action: Introduced Jan. 13
- Awaiting: Hearing in Senate Utilities Committee
- Creates a tax credit for expenses in manufacturing of a small modular nuclear reactor
- Author: Rep. Ed Soliday, R-Valparaiso
- Last action: Introduced Jan. 13
- Awaiting: Hearing in House Utilities, Energy and Telecommunications Committee scheduled Jan 21
- Establishes a modular nuclear reactor pilot program and designate eligible sites for such projects
- Author: Sen. Eric Koch, R-Bedford
- Last action: Introduced Jan. 13
- Awaiting: Hearing in Senate Utilities Committee
And everything else
- Creates a boundary adjustment commission that would study whether to recommend absorption of Illinois counties that want to secede from the Democrat-led state
- Author: House Speaker Rep. Todd Huston, R-Fishers
- Last action: Introduced
- Awaiting: Hearing in House Government and Regulatory Reform Committee
- Legalizes marijuana for those over age 21
- Author: Rep. Heath VanNatter, R-Kokomo
- Last action: Introduced Jan. 21
- Awaiting: Hearing in House Courts and Criminal Code Committee
- Bans sale of e-liquid or vape products
- Author: Rep. Elizabeth Rowray, R-Yorktown
- Last action: Introduced Jan. 8
- Awaiting: Hearing in House Public Policy Committee
- Requires a social media company to obtain parental consent before allowing a child under 16 to use the platform
- Authors: Sens. Mike Bohacek, R-Michiana Shores, and Liz Brown, R-Fort Wayne
- Last action: Amended and passed 10-1 in the Senate Judiciary Committee Jan. 15
- Awaiting: Consideration by the full Senate
- Makes procedural changes to how a homeowners association conducts meetings and assesses fees
- Author: Rep. Julie Olthoff, R-Crown Point
- Last action: Introduced Jan. 13
- Awaiting: Hearing in the House Judiciary Committee
Know of a bill that should be on our radar? Contact IBJ’s statehouse reporter Cate Charron at ccharron@ibj.com.
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