Those of us who spend our winter days roaming the halls of the Statehouse look forward to session’s halfway mark – when viable bills cross chambers, accompanied by a short respite in legislative activity – with great anticipation. The same anticipation, say, as Bad Bunny fans awaiting his Sunday Super Bowl halftime show.

But like the special effects that tend to adorn those halftime shows, this year’s Statehouse break is merely a mirage.

Bills are moving with such speed and ferocity that this week’s legislative halftime brought no slowing of activity nor break in debate. Thankfully for our Legislative Update subscribers, that means we have plenty of pre-reading to offer you before Sunday’s big game (or big concert, ads bonanza, or snack buffet, depending on your interests).

Find your favorite spot on the sofa to read this week’s play-by-play and warm up that perch for your Sunday afternoon viewing.  

In today’s Legislative Update:

Get in Formation

You’ll notice a legislative trend this week that’s almost as obvious as the many celebrity cameos slated for this year’s Super Bowl ads. The key elements from bills that died before halftime are being resurrected into omnibus bills. We’ll talk about two of those mega-bills – HB 1210 (the fiscal issues bill) and SB 281 (the regional economic development bill) in more detail.

🏠 But first, let’s catch up on the housing debate.

NFL vs. Teams

HB 1001 – Republican Rep. Doug Miller’s pro-housing supply legislation – is generating a debate spicier than our favorite Super Bowl chicken wings. At the heart of the issue is a common theme: local autonomy versus state control.

⬆️ The Upshot: As a reminder, the bill aims to make it easier—and more predictable—to build new homes, while adding transparency around local housing outcomes. The bill nudges local zoning to better match adopted comprehensive plans. Starting in 2027, if a city or town updates its plan but doesn’t bring zoning into alignment within a year, proposed projects would be approved if they comply with either the plan or the zoning code – a move designed to keep projects moving. The bill also puts guardrails on local fees and expands where housing can be built by default. Most affordable housing developments would be allowed to be built “by right” on property owned by religious institutions. And unless a community opts out by ordinance, the bill sets statewide “default” zoning rules that limit parking minimums and restrict overly large lot-sizes, density, and site standards—changes designed to lower costs and increase supply.

💬 The Debate: Local elected officials are pushing back against the bill. In an IndyStar op-ed published this week, more than three dozen Central Indiana mayors, town managers, county commissioners, and council presidents called HB 1001 “a one-size-fits-all mandate that treats local planning as the problem to be solved.” They argue that the state is exerting too much control over what should be a local process with lots of public input. While affordable housing is a problem that needs to be addressed, they say the answer is reforming permitting, investing in local infrastructure in growing communities, and setting and rewarding production targets.  

🏈 For NFL skeptics who think teams need more autonomy to innovate, this local control argument will resonate (revenue sharing, amirite?).

But others assert, to the contrary, the state needs to intervene if we’re going to take meaningful steps toward solving the housing crisis. In another Star piece, urban planner and Downtown Indianapolis resident Jeffrey Tompkins argued that local zoning regulations have become too burdensome in restricting the type of housing we can build and the supply of housing available, which limits supply and increases prices. He calls HB 1001 “the abundance agenda Indiana needs,” noting that it not only eliminates unnecessary red tape – for example, stringent requirements with adding accessory dwelling units – it also increases transparency by requiring locals to opt out of more relaxed designed standards, parking requirements, and lot sizes – which also means they must explain their position.

➡️ What’s Next: The bill has been referred to the Senate Judiciary Committee.

Playing Under the Cap

Speaking of local governments’ frustration with the state, remember SEA 1? Last year’s property tax reform legislation will reduce the tax burden for homeowners while also decreasing property tax revenue for local governments. However, to offset some of that lost revenue, the bill also shifts part of the local tax burden from property taxes to local income taxes (LIT). It raises the county LIT expenditure cap to 2.9%, allows larger cities and towns to adopt their own LIT rates, and restructures how LIT is shared among counties, municipalities, and other local units. This gives locals more tools to replace revenue, but it also sets up difficult local decisions about income tax increases and how revenue is divided.

🎯 Enter HB 1210, which, among other things, attempts to clean up some of the quirks that accompanied SEA 1. Here is what the bill, authored by Republican Rep. Craig Snow, does, in four plays:

Signing Bonus

SB 281 has become the vehicle for a slate of provisions to fuel regional economic development. Authored by Republican Sens. Greg Goode and Ryan Mishler and Democratic Sen. David Niezgodski, the bill puts more structure, accountability, and resources behind regional economic development, while giving the state flexibility to support large, high-impact projects that span multiple communities.

🖼️ Big Picture: The bill authorizes the Indiana Economic Development Corporation (IEDC) to award up to $50 million per fiscal year in redevelopment tax credits for projects that align with approved regional development plans and have a recommendation from a regional development authority (RDA). Importantly, it also:

That’s all for this week’s update. Keep following along to see if our legislative predictions are more on point than our Grammy picks were last week. 

As for the outcome of Sunday’s game? As Colts fans, we can borrow the words of Tom Brady and say we don’t have a dog in the fight. Hopefully, our take will land with less controversy.

Until next week.

We’re whistling while we work these days, and it’s not just because the Grammy Awards are Sunday. Next week at the Statehouse, viable bills will play musical chairs in the Legislature, with House-originated bills that have passed the House moving to the Senate, and vice-versa.  

While many of most-watched bills already made the cut this week, some are still facing their last hearings on Monday. We don’t know which will be more suspenseful: the final moments until these proposals make it to the other chamber, or the nail-biting seconds before Album of the Year is awarded. (💡POV: Close contest between Kendrick Lamar and Lady Gaga)  

Whatever the outcomes are on both fronts, we hope they start your week on a high note. 

Read on for this week’s songbook and find our curated playlist of corresponding tunes at the end of this update for your listening enjoyment. 

Go Your Own Way

Lawmakers supporting Republican Rep. Bob Behning’s HB 1423 are seeking to create a more unified, efficient system of schools within Indianapolis Public Schools (IPS) boundaries under a new entity called the Indianapolis Public Education Corporation (IPEC). Based on amendments that passed Thursday, they also want to carve out exceptions for charter schools that lease or own their buildings and want to go their own way. However, there’s a large carrot for charters that do enable their facilities to fall under the purview of IPEC: they gain access to public funding for capital projects and debt service, from which they have historically been excluded. Complicating matters is the fact that some charter schools, which historically have lacked access to funding for facilities, have financed their buildings with private dollars, so there’s nuance around whether those privately funded assets could fall under IPEC control. 

The bill saw other clarifying changes, including: 

👀We’ll be watching on Mon., Feb. 2, as the bill receives its third and final reading in the House, where it must pass before moving to the Senate.  

We Can Work It Out 

The debate over the controversial SB 285, Sens. Cyndi Carrasco’s and Eric Koch’s effort to regulate public camping, offers a glimmer of hope for fans of good, old-fashioned compromise. An amendment that passed last week would position the bill to be a better vehicle for getting those in need of housing and other supports access to services, including through partnerships such as Streets to Home Indy 

Don’t Stop Believin’ 

HB 1098– Rep. Matt Commons’ bill to clarify liability protections for employers who hire workers under 18 – will make its way to the Senate. The bill wants to help employers Believe that by hiring high school students to participate in apprenticeship programs that prepare them for in-demand jobs, they’re not only doing right by the next generation, but they’re also making a smart decision for their bottom line and helping the state’s workforce.  

Recent amendments helped clarify that workers’ compensation insurance provides the exclusive avenue for remedy for onsite workplace injuries, whether for minors or adults. Employers and the intermediaries that help oversee these work-based learning initiatives would be left to determine the details of who is going to be on point for workers’ comp.  

🤔 Indy Chamber’s Take:  We’re singing Pharell’s Happy to these changes, which we hope will give employers confidence to engage in these critical workforce development and skill-building apprenticeship programs, while not saddling intermediaries with too great a liability burden.  

🎉We’ll be ready to Jump Around if the bill passes the Senate and is signed into law. 

I Want You to Want Me

Indiana knows how important it is for companies to get talent to move to the state and stay. SB 264, which passed the Senate and moves to the House, is focused on leveling up Indiana’s gravitational pull.  

Authored by Sens. Brian Buchanan and Linda Rogers, the bill makes the state’s EDGE tax credits a more competitive tool for employers seeking to attract and retain talent. The bill allows the Indiana Economic Development Corporation (IEDC) to boost the value of an EDGE credit when a company incurs relocation costs to bring a worker to Indiana for a new job. It also makes clear that companies can qualify for EDGE credits for retaining employees, not just creating new jobs, if they increase an employee’s hourly wage by at least 25%.  

But will money on the table beat out a Love Song as a way to attract workers? Let’s be honest, probably. 🥰 

Against the Wind

Syringe exchange programs in Indiana and nationally have proven to help those using intravenous drugs engage with supportive services, including disease testing, addiction treatment programs, and wraparound assistance like housing and food. Yet historically, they have faced pushback in some corners due to unfounded fears that such programs might encourage substance use. Nonetheless, in Indiana, this research-backed approach has persisted since the state’s original syringe exchange law passed in 2015. This year, SB 91, which moves to the House, delivers a major win for syringe exchange programs and the people they help. 

Authored by Sens. Michael Crider, Ed Charbonneau, and Brett Clark, with a bipartisan list of co-authors, the bill extends the supporting legislation for Indiana’s 1:1 syringe exchange program, which was set to expire in July, through 2036.  Talk about an encore. 👏 

🏆And the Grammy Goes to: Sen. Michael Crider, who has been a tireless and tenacious champion of syringe-exchange programs. We owe him a debt of gratitude for his principled, dedicated efforts to pass this year’s extension.  

Team 

Turn up your Celine Dion (or, if she’s not your jam, try Drake, Shania Twain, or Justin Bieber). These Canadian superstars’ tunes offer a soundtrack to our joy over a recent trio of Senate- adopted resolutions reaffirming Indiana’s strong and growing partnerships with the provinces of Alberta (SJ 7), Quebec (SJ 8), and Ontario (SJ 9).  

Maple leaf What this means: Canada remains one of Indiana’s top trading partners, and these resolutions, introduced by Sen. Eric Koch in his role as Utilities Chair, underscore the depth of collaboration already underway across energy, technology, agriculture, and space.  

At a moment of uncertainty in the broader international trade climate, these resolutions demonstrate that subnational relationships can continue to thrive. They also lay the groundwork for an even more robust Indiana-Canada partnership in the years ahead.  

Purple Rain

Our hearts go out to the people of Minneapolis, which has experienced dramatic unrest amidst the fatal shootings of two of its residents by immigration enforcement officers over the last month. The late legendary artist Prince, a Minneapolis native, captures the sorrow of the moment well with his lyric: “Sometimes It Snows in April.” 

Earlier this week, more than 60 CEOs of Minnesota-based companies signed a joint letter posted on the Minnesota Chamber of Commerce’s website calling for a de-escalation of violence and imploring local, state, and federal leaders to collaborate on solutions.  

🏠What this means at home: In Indiana, a slew of immigration bills have been debated this session that would double down on enforcement mechanisms, including some implicating employers (see SB 122, HB 1039, and SB 87). We remain optimistic that Indiana can continue to be a place of nonviolence and a model for handling policy disagreements peacefully. Joining our Minnesota colleagues, we urge collaboration toward peaceful solutions on immigration issues and a principled commitment to the rule of law.  

🎤We don’t want to end on a somber note. While things may feel heavy in the world (not to mention frozen, given the weather), remember that life is always better with music playing in the background. On that note, enjoy this curated playlist capturing the songs mentioned in today’s update. We’ll see you next week. 

As we experience the descent of a wintry blast that threatens to make Indiana feel like a scene from Frozen, we’re grateful to be hunkered down at the Statehouse, watching the red-hot action of a busy legislative session.  

Conversations around some bills have cooled this week (See the public camping bill, SB 285, which passed out of committee on Jan. 14 and is awaiting a full House hearing). But the topic of affordability continues to be on fire, with meaningful progress on bills related to bringing down the cost of housing and utility bills. Legislation regarding the management of facilities, transportation, and accountability for schools within Indianapolis Public Schools boundaries also continues to be a hot topic. 

Bundle up and get cozy! There’s no better fireside reading than a legislative missive. Here’s this week’s forecast:  

Easing the Housing Freeze

House Republicans advanced their priority housing bill, HB 1001, out of the House Local Government Committee this week on a 7-3 vote. Authored by Republican Rep. Doug Miller, the bill is aimed at expanding housing supply and improving homeownership affordability by easing certain local zoning and development rules. The version that moved forward reflects amendments made in response to feedback from local governments and stakeholders, including revisions related to duplexes, accessory dwelling units, and impact fees. 

The bill drew broad support from housing and economic development advocates, including the American Institute of Architects, the Indiana Housing and Community Development Authority, and United Way of Central Indiana, all of whom pointed to Indiana’s ongoing housing shortage and the need to reduce barriers to new construction. Some local officials, however, raised concerns about the bill’s impact on local control and infrastructure funding, arguing that limits on impact fees could shift costs to future residents. While some committee members signaled they want additional clarity as the bill moves forward, HB 1001 now heads to the House floor. 

Many Burning Questions

HB 1423 is Republican Rep. Bob Behning’s proposal to create a new, mayor-appointed Indianapolis Public Education Corporation (IPEC) to manage facilities, transportation, and systemwide accountability across schools within Indianapolis Public Schools (IPS) boundaries. The Chamber continues to support the creation of IPEC to create a more cohesive and efficient system of schools that serves all students within IPS boundaries well and ensures fair access to transportation and facilities, regardless of whether students attend district-run, public charter, or innovation schools.   

Following action in the House Education Committee, the bill now includes amendments that strengthen financial clarity and answer timeline questions, with a two-year ramp-up window before the IPEC begins management and operational duties in the 2028-29 school year. The changes adopted also set up a more consequential debate next week as the bill heads to the House Ways & Means Committee. Key topics center around how finances flow with the new corporation in place – and what dollars and obligations remain with schools that would be under IPEC oversight. (Warning: this gets wonky fast.) 

🤔 Indy Chamber’s Take: We view the Education Committee amendments as real progress and will continue to focus on ensuring that any new governance structure delivers stability, transparency, and public trust, while avoiding unnecessary financial risk for taxpayers. 

Turning Down the Heat 

A major bill aimed at making electric bills more predictable and fairer for Hoosiers has been revised and advanced to the full Indiana House after committee action. Lawmakers on Tuesday updated the proposal, authored by Republican Rep. Alaina Shonkwiler, with changes expected to improve clarity and consumer protections as it moves forward. 

One of the key changes reflects input from legislators on both sides of the aisle: updating the terminology for “budget billing” to “levelized billing,” which lawmakers see as clearer and more direct. Utility customers would pay consistent monthly amounts based on their historical energy use, rather than seeing big swings in bills, and would settle up no more than twice annually to reflect spikes in energy use.  

Under another change, utilities would also fund assistance programs for income-qualifying Hoosiers from 0.2% of their residential electric revenue, rather than through existing energy assistance dollars collected from ratepayers.  

A House committee unanimously approved the bill, sending it to the House floor for further consideration. 

🖼️The big picture: The bill ties into broader affordability concerns at the Statehouse, as utility costs have been rising sharply and become a top issue for many households. Proponents argue that creating more consistent billing, protecting income-eligible customers from disconnections during extreme heat, and building low-income assistance programs will help families manage costs. While generally supportive of affordability goals, some lawmakers may push for additional consumer safeguards as the bill advances. 

Fueling the Talent Fire 

We believe talent is the key to our region’s growth and economic vitality. To that end, the Indy Chamber supports efforts to enable high school and adult learners to get paid, on-the-job experience to help them learn while working, and build our region’s talent pipeline. For these efforts to succeed, we need clear guidelines in place to address employers’ workplace liability concerns related to employing youth under 18. HB 1098, authored by Republican Rep. Matt Commons, takes a step toward addressing these liability concerns.  

In its original draft, which we told you about two updates ago, the bill aimed to reduce uncertainty by clearly assigning liability when a student is placed with an employer through a talent intermediary. It put primary responsibility for legal and administrative claims on the intermediary, rather than leaving roles ambiguous. Recent amendments clarify both the benefits and protections students qualify for and the division of responsibilities between employers and intermediaries. 

🤔 Indy Chamber’s Take: We believe the amendments mark progress, but we still advocate for employers to maintain liability, with clear protections, such as a statutory safe harbor, to provide them peace of mind and confidence to engage.  

🏥Meanwhile, in the healthcare workforce… 

HB 1278 aims to help address Indiana’s nursing shortage by loosening restrictions on colleges and universities that train nurses, allowing more institutions to expand or start nursing programs. Supporters say the change would increase the pipeline of qualified nursing graduates and help meet growing workforce demand. 

👏The bill drew broad support from nursing schools, healthcare advocates, and workforce groups, including the Indiana Nurses Association. Proponents argue the bill could also help reduce healthcare costs by easing staffing shortages. The amended bill passed committee unanimously and will move to the full House. 

💲And on the tax credit side… 

SB 264, authored by Republican Sens. Brian Buchanan and Linda Rogers, updates Indiana’s EDGE tax credit to give the state more flexibility to attract and keep talent. It allows the Indiana Economic Development Corporation (IEDC) to boost the value of an EDGE credit when a company incurs relocation costs to bring a worker to Indiana for a new job. And it makes clear that companies can also qualify for EDGE credits for retaining employees, not just creating new jobs, if they increase an employee’s hourly wage by at least 25%. 

The bill passed out of committee last week and now moves to the full House. 

Cooling Oversight

The Indianapolis City-County Council created a General Orders Board in 2020 with authority to approve policies on how the Indianapolis Metropolitan Police Department (IMPD) officers conduct themselves, including the use of force. Indianapolis’ civilian-led board is among many policing reforms implemented across the U.S. following the 2020 murder of George Floyd by police force in Minneapolis.  

Council Republicans have advocated to rein in the authority of the Board, noting that challenges with making quorum for meetings have stalled decisions and hampered the department’s ability to approve policies. Council Democrats have rejected those efforts.  

SB 284, authored by Republican Sen. Cyndi Carrasco, would limit the authority of any civilian oversight board or commission created by a city, county, or township in Indiana to oversee a law enforcement agency to advisory only – meaning they cannot make binding decisions. These boards would be allowed to review, recommend, and provide input, but final authority would remain with the law enforcement agency itself. The bill explicitly excludes merit boards and commissions, which already have defined statutory authority. SB 284 passed out of committee and heads to the House. 

🤔 Indy Chamber’s Take: Public safety is among the most important issues affecting our city. We need to create optimal conditions for IMPD to enforce safety and build trust with the community – and we also need to ensure the department can attract and retain top talent. The Chamber was an early supporter of the creation of the General Orders board — we are looking for opportunities to preserve civilian input in policing policy while ensuring that the GO board runs optimally.   

Controlled Burn  

HB 1004, authored by Republican Rep. Bob Behning, is a wide-ranging education clean-up bill that updates, consolidates, and eliminates dozens of education statutes across K-12 and higher education. Among many other provisions, it would change requirements around curriculum and graduation and ease teacher licensing rules. With recent amendments, the bill would allow school boards to hold meetings in different school district boundaries, align the number of absent days with current law, and ensure dating violence education in schools. It passed out of committee and heads to the full house. 

Thank you for reading this week. Remember, while the action is moving fast, things are just warming up at the Statehouse. We hope that by the time of next week’s update, the thermostat will follow suit. 

Get Real-Time Updates

Follow the Indy Chamber’s advocacy efforts throughout the legislative session with our weekly Legislative Updates. We’ll share timely insights, policy progress and advocacy priorities, delivered straight to your inbox. Sign up here.

Friday Night Lights at the Statehouse

Good Friday afternoon, and welcome to the Indy Chamber’s first Legislative Update of 2026!

We’re counting the hours until IU plays Oregon in the Peach Bowl while looking back on a week with no shortage of action at the Statehouse. On both fronts, it’s fair to say, go Hoosiers!

Statehouse observers predicted a lower-activity legislative session this year following a contentious December redistricting fight. Instead, the first week of the 2026 Indiana General Assembly has offered a packed playbook, showing that lawmakers aim to tackle weighty issues – from housing to taxes and childcare – even in a short session.

We’re pleased to see that many of these issues line up with the priorities in our 2026 legislative agenda: Grow Our Economy and Build Our Talent.

So, put on your cream and crimson and read up on what happened in the arena this week!

The Lineup:
Quarterback (Affordability)
Second-Half Adjustment (Property Tax Updates)
A New Playbook (Economic Development)
Opening up the Field (Childcare) + Leveling the Playing Field (K-12 Education)
Building the Bench (Work-Based Learning Liability)
Celebrating a Win! (Cigarette Tax Revenue)

Quarterback

If this session had its own Fernando Mendoza, it would unquestionably be the topic of affordability – an issue  linking several policy matters together and driving the overarching Statehouse agenda. Like the beloved Indiana University quarterback, this theme has been broadly embraced by Indiana Republicans and Democrats.

⬆️The Upshot: Hoosiers want their elected officials to focus on kitchen-table issues, and the legislature seems to be listening, judging by the early action in session. Here’s where the affordability theme is showing up. 

👀What to Watch: HB 1001 will be heard in the Local Government Committee, and HB 1002 will be heard in Utilities, Energy and Telecommunications, both on Tues., Jan. 13.  

🏆If these plays can make it into the endzone, affordability may become this session’s Heisman Trophy recipient.  

Second-Half Adjustment

As policymakers seek to make life more affordable for their constituents, there’s a need to recognize that local government services go hand-in hand in helping communities thrive. While stability or even reduction in property tax payments is important to residents, it must be balanced with governments’ ability to provide critical services, such as public safety and infrastructure. 

SEA 1, which passed last session, will reduce property taxes for homeowners and cut revenue for local units of government.  

HB 1259 attempts to help local governments by providing flexibility to recoup some of their lost funding through additional local income tax (LIT). Under the bill authored by Republican Rep. Jeff Thompson, the House’s Ways and Means Committee Chairman, cities and towns with at least 3,500 residents that already have a municipal LIT of 1.2% may increase that rate to up to 2.9%. The bill also would allow counties to adopt a tax rate to distribute funds to school corporations. And, it contains a clarifying provision that if local governments do not adjust their LIT rate annually, the rate will default to the minimum amount required to pay debt service. Beginning in 2030, counties’ and municipalities’ tax rates must be renewed every four years, which is a partial win for the Chamber and other local government advocates pushing for increased consistency with local income tax rates.  

 👀What to Watch: HB 1259 is being amended and will be heard in House Ways and Means in the coming weeks.   

A New Playbook

Indiana is seeking to shift its economic development muscle from the state to regional entities. House Bill 1101, authored by Rep. Dave Heine, a Republican representing Allen County, would divide Indiana into 15 economic development regions and create a regional commission in each one to coordinate local economic development efforts. Each commission would include representatives from across the region and would be responsible for developing a shared economic strategy. The commission would also appoint or designate a lead organization to carry out that plan.   

🤔Indy Chamber’s Take: We are enthusiastic supporters of regions forging their own economic development strategies and look forward to being a strong partner in this discussion. We do believe there will be a robust discussion on the mechanics of this bill, including who sits on these regional commissions – for instance, we believe private sector representation (not currently required in the bill) is essential for the formation of economic development strategy. Also, regions need flexibility to design governance structures that fit their local realities. This is especially true in Central Indiana, which already operates under unique statutory frameworks. 

🏈In Football Terms: Expect plenty of back-and-forth before the final whistle. 

📋Also of Note: We’ll be watching HB 1397 and SB 264, which seek to reform two of the state’s most prominent economic development tax credits—the redevelopment tax credit and the EDGE tax credit—to ensure they’re maximized for our state’s economic competitiveness. 

Opening up the Field + Leveling the Playing Field

Childcare: State of Play 

Indiana’s childcare system is under strain as federal pandemic-era funding has ended, state subsidy expansion has paused, and providers are responding to cuts and uncertainty. This has created long waitlists, led to provider closures, reduced access, and exacerbated affordability challenges – with ripple effects across the workforce and economy. Our members are feeling this pain and responded to our 2025 policy survey identifying access to childcare for employers as a key issue. 

Getting More Families in the Game 

HB 1149 will not fully solve the full childcare access crisis, but it’s a meaningful step. The bill would expand the state’s existing law around Scholarship Granting Organizations, or SGOs, which currently enable donors to provide grants to offset tuition for pre-K through grade 12 education for income-qualifying students in exchange for a 50% tax credit. The new bill, authored by Rep. Dave Heine, would extend the law to qualified early childhood education providers, which would have to be certified through the Indiana Department of Education. School corporations that provide early childhood education would be eligible to participate, and they would have to enable students who do not reside within their boundaries to access their programs.  

🤔Indy Chamber’s Take: This bill marks progress, and we’re supportive of measures that make childcare access easier and more affordable. 

👀We’re Also Watching: SB 66, which tasks the state’s Early Learning Advisory Committee with putting in place kindergarten readiness indicators to align early care and learning with academic readiness.   

K-12: State of Play 

Families in Indianapolis have a diverse array of options for where to send their children to public schools. Within Indianapolis Public Schools (IPS) boundaries, there are not only various models of schools, but also different governance structures: public charter, district-run, and a hybrid model called Innovation Network Schools (“innovation schools” for short). 

These options have created opportunity, but also operational complexity. Today not all schools within IPS boundaries have access to facilities and transportation, and myriad different systems exist to provide those services for students. The result is both inconsistency and inefficiency in the delivery of services. 

Uniting the Field 

HB 1423 would create a new Indianapolis Public Education Corporation (IPEC) to manage facilities and transportation for all schools within IPS boundaries. The corporation would include 9 members appointed by the Mayor of Indianapolis with an equal distribution of board members from IPS, public charters, and the residents at large. It would have the authority to levy taxes and would be tasked with creating a common system for school accountability, a feature that’s currently lacking from Indianapolis’ landscape.   

HB 1423, authored by the House Education Committee Chairman Rep. Bob Behning, follows recommendations in December from a task force of civic leaders, the Indianapolis Local Education Alliance. 

🤔Indy Chamber’s Take: We see this bill as an important step toward financial responsibility and public trust. It would ensure students have safe buildings, reliable buses, and clearer accountability—no matter which public school they attend. By handling these big, complex operations at the system level, schools and educators can focus on what matters most: teaching, learning, and student support. 

Schools must be fully funded, especially for students with greater needs—but in today’s high cost-of-living environment, taxpayers are right to expect that existing education dollars are being used efficiently before being asked for more. HB 1423 helps create that discipline by reducing duplication, improving coordination, and increasing transparency. 

In short, the Chamber believes HB 1423 moves the conversation away from “district versus charter” and toward a single commitment to students, with smarter operations, clearer accountability, and a more sustainable system for the future. 

📣We’ll Be Sharing These Key Points: On Monday, Jan. 12, when HB 1423 is scheduled to be heard in the House Education Committee.  

Building the Bench

The Indiana Career Apprenticeship Pathway (INCAP) is a new, statewide program that lets high school and adult learners gain real, paid, on-the-job experience in high-demand careers—while helping employers build a stronger workforce. The Indy Chamber supports this initiative and its goal of reaching 50,000 Hoosiers by 2034 as it aligns with our key priority of building our region’s talent. 

But there’s a roadblock at the line of scrimmage. 

Research commissioned from the Indiana Fiscal Policy Institute shows that some employers hesitate to participate because of workplace liability concerns related to employing youth under 18. The Indy Chamber supports putting clear guidelines in place to address these concerns and ensure employers know the rules of the game so they can engage.  

HB 1098, authored by Republican Rep. Matt Commons, takes a step toward addressing these liability concerns. The bill aims to reduce uncertainty by clearly assigning liability when a student is placed with an employer through an intermediary. It puts primary responsibility for legal and administrative claims on the intermediary, rather than leaving roles ambiguous. It also protects employers from insurance discrimination by prohibiting insurers from denying coverage, canceling policies, or charging higher rates simply because a worker is under 18 or enrolled in a work-based learning program. Any insurance decisions must be based on objective, risk-based criteria, not age alone. 

🤔Indy Chamber’s Take: We applaud attention to this issue, but we believe employers should maintain liability, not intermediaries, as they are used to assuming the risk and intermediaries are nonprofits with limited capital. With this liability, we also advocate for guardrails: 

Celebrating a Win!

Like you, we’re hoping for victories on the field tonight and beyond for the Hoosiers, but in the meantime, let’s celebrate another substantive win for our state.  

Last session, you helped advocate for an increase to the state’s cigarette tax, and lawmakers adopted a $3 per pack tax rate that went into effect on July 1. 

The cigarette tax increase is bringing in money than expected—about $152 million above projections and nearly $149 million more than last year, more than doubling revenue from this source in a year, according to the Indiana Fiscal Policy Institute. That is one factor contributing to the state collecting about $422 million more than was forecast through November 2025 – and $912 million more than this time last year. 

Even more important, cigarette use dropped by about 40% in the first three months after the tax increase went into effect. That’s a reason to celebrate.  

Until next week, go Hoosiers!