Indiana legislative session 2025 halfway point: A look at bills that advanced, died
Bills about the Indiana-Illinois border, Gary paying back casino fees and immigration have advanced, while an early voting bill, abortion bills and a Crown Point food and beverage tax have died — at least for the moment — as the Indiana 2025 legislative session reached the halfway mark.
Both chambers of the legislature met Thursday to give final approval to dozens of bills. Bills that hadn't been heard in committee by Monday won't be able to advance on their own. When the session reconvenes March 3, bills will switch chambers for consideration. On occasion, language from failed bills gets amended to other bills late in the session.
The 2025 legislative session is a budget session. Lawmakers will determine how to spend $44 billion for schools, health care programs, and infrastructure among other state-funded departments and programs.
The House approved, along party lines, a biennial budget Thursday. Republicans praised the budget for being fiscally responsible, while Democrats opposed the budget for falling short of fully funding schools, Medicaid and other services.
'It's opportunity for parents to make the choice for the best place for their children to attend school. It's the opportunity for Hoosiers to live in a state with an extremely bright future. It's opportunity for Hoosiers to be in a state that has a structurally balanced budget with healthy reserves,' said Rep. Jeff Thompson, R-Lizton, who authored the budget, which is in House Bill 1001.
Property tax cuts put pressure on municipal, school budgets
Senate Bill 1, authored by Sen. Travis Holdman, R-Markle, is a massive property tax relief plan that is the Republican supermajority's main priority for this legislative session. The bill, though amended, still takes $1 billion away from local governments and school districts.
'We just think there's a fine line that we have to walk to make sure that we are careful to be responsible to the local units of government and at the same time provide some relief to tax payers,' Holdman said.
Senate Bill 1 changes the percentage cap used to determine the maximum levy growth quotient to 0% in 2026, 1% in 2027 and 2% in 2028; and allows a county fiscal body to establish a property tax payment deferral program, where up to $10,000 can be deferred and the deferment becomes a lien on the property.
Senate Bill 1 offers tax deductions to those 65 years old and older and those who are disabled, establishes a firsttime home buyer tax credit, and allows for local governments to utilize a levy referendum during even-year general elections.
The bill was amended to remove Gov. Mike Braun's property tax relief plan he campaigned on. The bill initially stated a homestead standard deduction amount of 60% of the homestead's assessed value if the value is more than $125,000 or $48,000 plus 60% of the remaining assessed value if the homestead has an assessed value of $125,000 or less.
The fiscal impact of the amended bill would cut $1.4 billion across the state between 2026 and 2028, including $370.9 million from schools, $67 million from libraries, $304.3 million from cities and towns, and $346.6 million from counties.
It is less than the original plan, which would have cut $1.9 billion from schools, $254 million from libraries, $890 million from cities and towns, and $765 million from counties.
Michael Hicks, Director of the Center for Business and Economic Research at Ball State University, said Senate Bill 1 would cut about $1 billion for local governments at a time when local government is operating 'leaner now than it has been anytime that we've been keeping data, at least since the late 1960s.'
Local governments use property tax funds to pave roads, provide police and fire service, and maintain park and recreation facilities, Hicks said.
Democrats have stated they are pleased Senate Bill 1 was amended, but that it still negatively impacts local governments. Under Senate Bill 1 and Senate Bill 518, authored by Sen. Linda Rogers, R-Granger, funds from a school corporation referendum have to be shared with area charter schools as of May 2025, which would cause public schools to cut their budgets further, Democrats said.
'SB 518 was sold as a way to 'fairly' fund education, but the reality is far different. This bill does not increase funding for schools. It does not improve outcomes for students. It does not invest in the future of Indiana's education system. Instead, it shifts the financial burden of charter school funding away from the state and onto local homeowners — while 90% of Hoosier students continue to attend traditional public schools,' the Indiana Senate Democratic Caucus said in a statement.
Senate Bill 2, authored by Sen. Ryan Mishler, R-Mishawaka, passed and would place restrictions on Medicaid, such as work requirements for moderate-income Hoosiers who are in the Healthy Indiana Plan and are between the ages of 19 to 64. Any changes to the state's Medicaid program would have to be approved by federal officials.
The bill also creates a program cap, which threatens access for hundreds of thousands of Hoosiers. The bill includes 11 exemptions for the work requirement, including volunteering, receiving unemployment, or participating in a substance abuse program.
Mishler called Senate Bill 2 his attempt to 'right-size' Medicaid, which has grown exponentially in the wake of the pandemic. In the last four years, Medicaid costs have grown by $5 billion and participants have nearly doubled — from 390,000 to 750,000.
Sen. Fady Qaddoura, D-Indianapolis, said the legislators have to reckon with maintaining Medicaid services amid the inaccurate projection by $984 million for its Medicaid expenditure forecast in April 2023. The missed projection was the result of state reversions and unanticipated growth of services for aging and disabled residents.
The bill would end the expansion of Medicaid in Indiana. The bill would take the state back to the initial version of the Healthy Indiana Plan, where through a waiver the state controls who is added to the plan, Qaddoura said.
'We're effectively killing Medicaid expansion in the state of Indiana under the federal law,' Qaddoura said.
Senate Bill 287, authored by Sen. Gary Byrne, R-Byrneville, Sen. Chris Garten, R-Charlestown, and Sen. Blake Doriot, R-Goshen, advanced. It would change the school board election process to that of other elections, requiring candidates to declare a party and a primary and general election.
'I want a person that may have the same ideologies as I do sitting on that board. Currently, there are many citizens that don't know that when they are voting,' Byrne said when the bill was in committee. 'People go down the ballot, and they get to school board, and they don't know who or the ideologies or the beliefs that they have … and they just don't vote. I believe this would increase voter participation.'
Sen. Liz Brown, R-Fort Wayne, said making school board elections partisan would discourage people from running for school boards. The bill would also go against the Hatch Act, which prohibits state and local government employees from running for partisan political office, she said.
Indiana House Bill 1008, authored by Speaker Todd Huston, is headed to the Senate. It would establish an Indiana-Illinois boundary adjustment commission to research the possibility of adjusting the boundaries between the two states. Though it's unlikely Illinois would ever pass a companion bill, a commission would include five members appointed by the Indiana governor and five members appointed by Illinois.
Huston drafted the bill after he learned that nearly three dozen Illinois counties have voted in recent years to leave the state, he said.
In November, seven Illinois counties — Iroquois, Calhoun, Clinton, Greene, Jersey, Madison and Perry counties — voted to secede from the state. Iroquois County is along the Indiana border, the remaining six counties are closer to Missouri.
To change a state line, the U.S. Constitution dictates that the Indiana legislature, the Illinois legislature and then Congress would have to approve the measure, said Indiana University Paul H. O'Neill School of Public and Environmental Affairs professor Paul Helmke.
House Bill 1008 begins the conversation of moving the state line, Huston said. Illinois State Rep. Brad Halbrook, R-Shelbyville, has filed a companion bill in Illinois, Huston said.
Rep. Ragen Hatcher, D-Gary, voted in favor of the bill when it was in committee but ultimately voted against it when it was considered by the House. Ahead of her vote, Hatcher addressed the House and asked for the Republican supermajority to be as considerate of Democrats in Indiana as they are to Illinois residents.
'I understand what it means to be overlooked. Time and time again, legislation directly affecting Gary has been introduced and advanced by lawmakers from other areas without input from those of us who actually represent the community,' Hatcher said.
Two immigration bills – House Bill 1531 and House Bill 1393 – advanced to the Senate. House Bill 1531, authored by Rep. J.D. Prescott, R-Union City, ties state funding to the enforcement of federal immigration law by state and local governments, police and businesses.
House Bill 1531 was amended to remove language requiring schools to report undocumented students.
House Bill 1393, authored by State Rep. Garrett Bascom, R-Lawrenceburg, allows police officers who arrest someone for a felony or misdemeanor and has probable cause to believe the person isn't a legal resident should notify the county sheriff. The sheriff will then report the person to Immigration and Customs Enforcement.
Sophia Arshad, a Merrillville immigration attorney, said House Bill 1393 allows for racial profiling.
A bill that would require the Little Calumet River Basin Development Commission to submit an annual budget to the Lake County Council before Sept. 1 of each year for a nonbinding review advanced to the House.
Senate Bill 40 co-author Sen. Rick Niemeyer, R-Lowell, said the commission oversees a $6 million budget. While the current commissioners have done a good job allocating the funds, Niemeyer said a future makeup of the commission may not be as fiscally responsible.
Dan Repay, the executive director of the Little Calumet River Basin Development Commission, previously said the commission understands 'that people want to see what's going on and we don't have an issue with doing that.'
Senate Bill 187, authored by Sen. Dan Dernulc, R-Highland, wants the term of anyone serving on a county property tax assessment board of appeals who isn't an Indiana resident to expire July 1. The fiscal body, which is the council in Lake County, would then be required to appoint a new member to finish out the member's term.
Dernulc said he drafted the bill, which passed the Senate unanimously, after learning about Lake County PTABOA member Samantha Steele, who is also a Cook County Board of Review commissioner and was arrested for driving under the influence in Chicago late last year.
House Bill 1448 — which passed the House — requires the city of Gary to pay more than $12 million to East Chicago and Michigan City.
Ahead of Thursday's vote, author Rep. Hal Slager, R-Schererville, said the bill works to fix 'a misalignment of gaming revenue that was altered for four years through the movement of a gaming license and a hold harmless agreement.'
'We've got to get this straightened out and give the comptroller the authority to get that taken care of. This is a compromise solution,' Slager said.
Northwest Indiana is throwing its hat into the ring – again – to court the Chicago Bears to build a stadium in the region. The courtship, though, is an open one as a new bill — approved by the House and headed to the Senate — aims to attract any sports franchise to Northwest Indiana.
House Bill 1292, authored by Rep. Earl Harris, D-East Chicago, would establish a Northwest Indiana professional sports development commission, which would study plans to attract one or more professional sports franchises.
Harris said the commission would explore attracting professional football, baseball, basketball, hockey or soccer teams.
'The Bears are the big boy, so that has received the most attention. Honestly, I would love it if The Bears moved their location over to Northwest Indiana, but we are open to any sport,' Harris said.
Early in the session. Rep. Julie Olthoff, R-Crown Point, pulled a bill that would create a food and beverage tax for Crown Point after further discussion with the city's chamber of commerce.
Olthoff said chamber of commerce officials raised questions about how much money the tax would generate and a specific plan for spending the funds. As setting the tax and what it can be spent on is negotiable, Olthoff said there wasn't 'a full answer on that.'
The money collected from the tax, an estimated $1.182 million in 2026, would've been used for expansion and improvement of the Crown Point Sportsplex, Bulldog Park and Sauerman Woods Park; repairs and future development of the historic Lake County Courthouse and Lake County Jail; development and expansion of downtown parking capacity and amenities near the square and courthouse; and development and expansion of a multi-use trails.
Senate Bill 284, authored by Byrne, would shorten in-person absentee voting to 7 days. The bill was amended in committee to 14 days from the current 28 days.
Lake County Election and Voter Registration Board director Michelle Fajman testified against the bill because Lake County voters have really started utilizing early in-person voting in recent years.
Fajman said she disagreed with a point the committee discussed that fewer people vote in the first 14 days of early in-person voting. County election officials should have a voice in their early in-person voting setup, she said, because they know the trends of their voters best.
In Lake County, 90,049 voters voted early in-person in the 2024 presidential election, Fajman said. For that many people to vote in two weeks or one week would become hectic, she said.
'We like having the full amount of time. We'd like to do more,' Fajman said. 'Early voting serves a purpose. We're one of the worst in the nation with voter turnout, and here we're trying to limit it.'
The Senate Elections Committee passed the bill 6-3. But, Byrne never called the bill for a vote from the whole Senate.
Senate Bill 201, authored by Sen. Mike Gaskill, R-Indianapolis, would have required voters to choose their political parties in a primary election. It was never heard in committee.
Slager authored House Bill 1110, which would make it a Class A misdemeanor for a person to offer a payment to a public official as a reward for action taken or for a public servant to solicit or accept a payment as a reward for an act taken. The bill was never heard in committee.
Two abortion pill bills — Senate Bill 245 and Senate Bill 171 — were never heard in committee.
Sen. Michael Young, R-Indianapolis, authored Senate Bill 171 which would prohibit someone from knowingly or intentionally prescribing or possessing an abortion-inducing drug or sending an abortion-inducing drug to a person who lives in Indiana.
Senators Tyler Johnson, R-Leo, and Liz Brown, R-Fort Wayne, authored Senate Bill 245, which would make it a Level 5 felony if someone intentionally gives a pregnant woman Mifepristone or Misoprostol without her consent.
Jennifer Drobac, a professor of law emerita at Indiana University, said the bills prove the legislators don't understand the uses of Mifepristone or Misoprostol, which can be used to terminate a pregnancy but also regulate other conditions. The bills also would've caused harm to the low-income, marginalized women who can't afford to travel out of state to get an abortion, she said.
akukulka@post-trib.com
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