Legislative Update: 1.24.25

Legislative Update: 1.24.25

While outside the Statehouse, penguins ambled up and down Market Street, remarking on the comfortable temperatures; inside the capital, the Indiana General Assembly was off to the races, with priority bills moving through hearings and out of committee at a rapid clip.

We’re still early on in the legislative session, and it’s a marathon, not a sprint. A lot can—and will—change before bills become law over the next few months. Our plan? Strap in and hang on tight.

A Budget Bargain

This week, the Indiana House released HB 1001, authored by Rep. Jeff Thompson, which mirrors the budget proposal introduced by Gov. Mike Braun.

The introduced bill fully funds the state’s Medicaid program, eliminates the wait list for qualifying families to receive childcare vouchers, and tasks state agencies with finding 5% savings to cover budget priorities like increased education funding. 

• REMINDER: Though it might look now like everyone agrees on everything, many rounds of negotiations are still to come before final passage in April. Based on hallway conversations we’re hearing, this budget will see some significant edits and iteration between the two chambers. 
• How does the budget become law? Check out Indiana’s budget development process here.   

Ear to Grindstone: Work-Based Learning

There’s a surge of momentum behind providing Hoosier students with paid, career-aligned work experience and training through apprenticeship programs that begin in high school and culminate with an industry-recognized credential.

Around two-thirds of Hoosier high school grads do not complete a higher education degree. Creating work-based pathways to meaningful, gainful career opportunities is critically needed to prepare our students to succeed. Now, the state needs more employers to hire apprentices, and the legislature is taking steps to help.

• The Senate education committee heard SB 448, authored by Sen. Greg Goode, requiring the Secretary of Education to prepare a plan to prioritize industries apprenticeships should be focused on, based on sector needs.
• It also requires the Management Performance Hub to annually report the number and type of credentials needed to fill employment openings–data that could help nudge employers to embrace apprenticeships.  
• These two provisions build upon the apprenticeship framework championed by the Richard M. Fairbanks Foundation, Indy Chamber, and iLab over the last several years. 

Goes Ever On and On: Road Funding Discussions

We’re in the first mile of figuring out a plan to maintain and enhance Indiana’s reputation as the “Crossroads of America.” As gasoline taxes wane and growing communities around the state struggle to keep up with key infrastructure needs, lawmakers and stakeholders are on a journey toward solutions.

HB 1461, authored by Rep. Jim Pressel, includes a variety of proposals for new revenue at the state and local levels. It’s scheduled to be heard on Monday in the House Roads and Transportation Committee.

• The bill includes provisions to increase interstate tolling—a measure the Indy Chamber strongly endorses as the best way to add significant new revenue to the state’s road funding system and share that burden with out-of-state drivers.  
• It also includes a menu of options for locals—it triples the existing caps for Marion County’s excise surtax and wheel tax and authorizes Marion County’s Thoroughfare District to pursue a property tax referendum to fund local roads.  
• It shifts responsibility for new roads around economic development projects from INDOT to the company seeking incentives. While we certainly understand the need for INDOT to not get stuck with the bill, this shift would have been a deal breaker for many of the most important investments our state has seen in recent years—so we have concerns.

Even with these new options, the message from the legislature remains consistent: They expect local communities to increase utilization of existing tools before they can access new dollars from the state.

The Indy Chamber believes that in the Marion County context, increasing the excise surtax and wheel tax are critical to solve for our road funding challenges, while minimally impacting taxpayers. We’re working closely with state and local leaders to build consensus on a path to solve this perennial problem. 

Aim Small, Miss Small: Regional Economic Development

SB 377, by Sen. Greg Goode, would target all state dollars for regional economic development toward investment in a few core industries: life sciences, emerging biotechnology, microelectronics, quantum physics, artificial intelligence, cybersecurity, or defense development.

The bill was heard in Senate Appropriations this week and held for further discussion and likely amendment.

• The industries in the bill align with the focuses of the CHIPS and Science Act, the passion project of U.S. Senator Todd Young. Heartland BioWorks was awarded over $50 million from the CHIPS Act to strengthen Indiana’s capabilities in life sciences. 
• During the Chamber’s most recent Leadership Exchange (LEX) 2025 trip to Boston, we studied the Massachusetts innovation economy successes, largely driven by that state’s focused investment in the biotech space—so we can see the appeal of the selective approach. 
• The bill also calls for regional economic development funding to be distributed solely through regional economic development authorities (RDAs). It’s aimed at programs similar to READI and the Regional Cities initiative.  
• It also includes language reauthorizing the Central Indiana RDA (CIRDA), chaired by Mayor Scott Fadness (Fishers) and vice-chaired by Mayor Chris Jensen (Noblesville).

While we applaud the focus of the bill and enthusiastically join regional mayors and town officials in advocating for the reauthorization of CIRDA, we do share the concerns of some that the bill as introduced limits the ability for regional entities—some who aren’t RDAs—to continue to channel state investment, particularly into priorities like talent attraction, housing development, or quality of life amenities. We’ll keep you up to speed as these conversations develop.

For those deep in the weeds of economic development, you might also want to check out: 

• HB 1561 (Tax Increment Financing) authored by Rep. Ed Clere
• HB 1032 (Foreign Interests) authored by Rep. Craig Haggard
• HB 1005 (Housing and Building Matters) authored by Chairman Doug Miller  

New Year's Resolution: Healthcare Savings

Executive branch actions this week aim to slim down healthcare costs in state agencies—a new example of the perennial resolution at the Statehouse to reduce the cost of care.

• EO 25-21 requires state agencies to consider options for increasing healthcare price transparency.
• EO 25-22 tasks the Secretary of Health and Family Services with analyzing the amount of charity care nonprofit hospitals provide relevant to their tax-exempt benefits.
• In making this an early priority, Braun is following through on campaign pledges to address the cost of healthcare.  

DEI Backlash

From the White House to the Indiana Statehouse, Diversity, Equity, and Inclusion (DEI) initiatives are under attack and being rolled back. Both President Donald Trump and Gov. Mike Braun issued executive orders in their first days in office to end federal and state DEI efforts.

The Indiana Senate Judiciary Committee also passed two bills targeting DEI this week. Both SB 235, by Sen. Tyler Johnson, and SB 289, by Sen. Gary Byrne, will be heard by the full Senate.