Key Indiana Bills That Could Impact Gary's Schools, Health Care, and Economy

Yahoo

27-02-2025

From a push to ban diversity programs to Medicaid restrictions that could leave thousands uninsured — and even a plan to lure the Chicago Bears to Northwest Indiana — Gary residents have a lot at stake in Indiana's 2025 legislative session. With the session reaching its halfway mark, lawmakers have cleared several key bills — some advancing toward becoming law, others dying in committee.
As legislators return to the Capitol on March 3, Capital B Gary has compiled a bill tracker highlighting proposed legislation with the biggest impact on Gary. Below, we break down the bills that have advanced and are now one step closer to becoming law, as well as those that failed but could have significantly reshaped the city.
What it does: This is the state's main budget bill, deciding how money is spent on schools and universities, Medicaid, roads, and other state services. It also includes policy changes such as how certain government boards are structured, one of which directly impacts Gary.
How it affects Gary: A provision in the bill would reduce Gary's control over the Gary/Chicago Airport Authority Board. Right now, Gary's mayor appoints four members, but the proposal would cut that to one. The other seats would go to Crown Point, Michigan City, and the Northern Indiana Commuter Transportation District. This shift could weaken Gary's influence over airport decisions and economic development in the region.
Status: Passed the House, 66-28
What it does: It proposes a major overhaul of Medicaid in Indiana by capping enrollment in the Healthy Indiana Plan (HIP) — Indiana's Medicaid expansion — at 500,000 members. Currently, HIP serves approximately 700,000 Hoosiers, so this cap could potentially leave hundreds of thousands of Hoosiers without coverage. The bill also seeks to place work requirements for HIP eligibility and restricts advertising for Medicaid programs.
How it affects Gary: More than 40% of Gary residents are insured by Medicaid, according to the U.S. Census Bureau.
Status: Passed the Senate, 40-9
What it does: The bill expands the Indiana Crime Guns Task Force to include Lake County. Currently, the task force operates in nine counties in central Indiana, working with state and federal officials to trace firearms used in crimes and develop a uniform strategy to reduce violent crime.
How it affects Gary: Gary continues to struggle with gun violence. In 2024, the Lake County Coroner's Office investigated 65 homicides, with the majority occurring in Gary, according to state Rep. Earl Harris.
Status: Passed the House, 89-0
What it does: This bill proposes the creation of the Northwest Indiana Professional Sports Development Commission to develop a strategic plan for attracting professional sports teams — potentially including the Chicago Bears — to the region. The commission would explore stadium development, economic incentives, and regional benefits to position Northwest Indiana as a viable location for major sports franchises.
How it affects Gary: The creation of a commission could have significant economic implications for Gary and the entire region. Bringing a professional sports team to Northwest Indiana would stimulate the economy, boost tourism, and create job opportunities. The current speculation, as discussed by bill author Rep. Earl Harris Jr., centers on building a stadium in Northwest Indiana to lure the Chicago Bears, following the model of teams like the New York Giants, New York Jets, and Dallas Cowboys, whose stadiums are located outside the cities they represent.
Status: Passed the House, 83-6
What it does: The proposed legislation addresses a clerical error by the state comptroller that resulted in Gary receiving tax revenue intended for Michigan City and East Chicago. To correct this, the bill requires Gary to repay the $12.3 million it received over multiple years.
How it affects Gary: Under the current schedule, the city would have to pay $5 million this year, with additional payments in the following years. Gary Common Council members met with the bill's author in Indianapolis this month to discuss adjusting the payment timeline to ease the financial strain on the city's budget, according to council President Lori Latham.
Status: Passed the House, 89-2
What it does: HB 1136 proposes requiring districts where less than 50% of students living in the district attend public schools to convert their remaining schools into charter schools by 2028.
How it affects Gary: This was one of the most concerning bills for Gary residents and city leaders, as it directly threatened the future of Gary Public Schools. If passed, the bill would have forced Gary and Indianapolis Public Schools — along with three other districts — to transition to charter schools, effectively stripping local control over public education.
Status: No vote, died in committee.
What it does: The bill would end state spending on diversity, equity, and inclusion programs in state agencies, public educational institutions, grant recipients and contracts, and health professional licensing boards.How it affects Gary: With the highest percentage of Black residents in Indiana, Gary could be disproportionately affected by the loss of DEI-related funding, programs, and initiatives that support education, workforce development, and health care access. While the exact impact remains unclear, the bill has the potential to significantly disrupt funding streams that benefit the city and its residents.
Status: While the original SB 235 was withdrawn, the contents of the bill were added to Senate Bill 289, which passed the Senate 37-13.
What it does: SB 11 requires social media companies to obtain verifiable parental consent for users under 16 years old, and grants the attorney general the power to sue social media companies that fail to comply.
How it affects Gary: This bill would impact all Hoosiers, including parents in Gary, by placing new restrictions on minors' access to social media.
Status: Passed by Senate, 42-7
What it does: The property tax bill covers a wide range of tax-related issues, from the establishment of tax credits for first-time homebuyers to requiring the Department of Local Government Finance to develop and maintain a property tax transparency portal, among many other provisions.
How it affects Gary: The city is heavily dependent on property tax dollars as a source of revenue to fund critical city services. Major cuts to property taxes could have a detrimental effect here. For his part, Gov. Mike Braun is dissatisfied with the Senate bill, as it doesn't make the deep cuts he promised during his campaign.
Status: Passed the Senate 37-10. Braun, however, has stated that he will not sign the bill in its current form.
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