The fifteenth week of session marked the third reading deadlines for Senate bills in the House and for House bills in the Senate. Additionally, the State Budget Committee received updated revenue forecast data Wednesday that will drive the final numbers in the state budget bill (HB 1001). We are now seeing a flurry of activity as both chambers work to finalize language in remaining bills through the conference committee process. If all goes to plan, the legislative session could end as early as next Thursday, April 24. By statute, the session must be completed by 11:59 p.m. on Tuesday, April 29.
April Revenue Forecast
On April 17, the State Budget Committee met to get an update on the Medicaid, economic and state revenue forecasts prior to finalizing the state budget bill (HB 1001) next week. In a sharp turnaround from the strong financial fortunes of the last budget cycle, Indiana’s projected revenue for the next budget cycle fell by $2 billion according to the new forecast data released by the Revenue Forecast Technical Committee. The current budget cycle for the 2025 fiscal year is also short by an estimated $400 million, though closing that gap will likely rely on reserves. Indiana's tax revenue is still growing but not at the rate anticipated.
The December 2024 forecast data included roughly $800 million in new revenue for the state over the next two years, though nearly all of that came in the first year. Now even that marginal growth is gone. Much of the loss can be attributed to economic uncertainty, including worries about the impact of tariffs in the country’s most manufacturing-intensive state.
In the update provided on Medicaid, the growth of Indiana’s program appeared to be slowing. Medicaid rolls were just over 1% lower than previously estimated, a difference of less than 30,000 Hoosiers. More than 2 million residents rely on the program for their health care coverage. But, as an entitlement program, much of the program can’t be cut — meaning that the state will likely remain committed to spending roughly $10 billion over the next two years.
However, much remains uncertain about Medicaid’s future, especially with several large pieces of legislation still up in the air at the state and federal level. Under SB 2, most able-bodied working-age adults would be required to work at least 20 hours a week to keep their benefits.
Additionally, changes to the state’s calculation of the hospital assessment fee or implementing the managed care assessment fee weren’t included in the presentation, though the latter could bring in $1.4 billion if fully implemented. Secretary of the Indiana Family and Social Services Administration Mitch Roob (who’s agency oversees Medicaid) cautioned he didn’t believe the Trump administration would allow the state to leverage the tax to the maximum extent.
Learn more about the April Forecasts
House Bills
HB 1001: State budget
Passed Senate 40-9 and House dissented to Senate amendments.
The Senate Republican’s biennial budget holds the operating appropriations funding flat for all state educational institutions at FY25 levels, with FY25 outcomes-based performance funding (OBPF) earned included. Repair & rehabilitation funding was maintained at the House Republican’s proposed 0.525% in the formula, resulting in $3.1M more each year for IU. Regional Campus Deferred Maintenance was funded at $9.8M in FY26 for IU’s five regional campuses. It does not include additional new funding for OBPF or any funding for other IU capital projects (either cash or debt financed). Current line items were held flat. Other provisions in the budget include: (1) requires the Secretary of Education to provide a report to the Indiana General Assembly on the future of dual credit funding and alignment; (2) reverts unspent money from the Indiana Commission for Higher Education (CHE) in the Frank O’Bannon grant program back to the state general fund; and (3) requires the Indiana Commission for Higher Education to report on the utilization of physical facilities primarily used for instruction at each state educational institution.
HB 1002: Various education matters
Passed Senate 31-18 and House dissented to Senate amendments.
The bill removes and repeals various education provisions and expired education provisions in Indiana Title 20: Education. This will be a multi-year process to “reduce regulations on K-12 schools to increase flexibility and give local communities more control over education decisions.”
HB 1003: Health matters
Passed Senate 48-1 and House dissented to Senate amendments.
Specifies that the Medicaid fraud control unit's (MFCU) investigation of Medicaid fraud may include the investigation of provider fraud, insurer fraud, duplicate billing, and other instances of fraud. The bill also prohibits a health plan from rescinding a prior authorization that the health plan has previously approved within one year after the prior authorization is approved. It also allows the Indiana Department of Health (IDOH) to enter into partnerships and joint ventures to encourage best practices in the appropriate and effective use of priorauthorization in health care. Additionally, it requires IDOH, in consultation with the office of technology, to study the feasibility of developing certain standards regarding medical records and data.
HB 1004: Nonprofit hospitals
Passed Senate 29-19 and House dissented to Senate amendments.
The bill, among other provisions, requires the state’s five largest nonprofit hospital systems to cap prices from July 1, 2025, to June 30, 2027. The bill also requires the Indiana Department of Health (state department) to assess a penalty against a nonprofit hospital system if the nonprofit hospital system fails to meet specific pricing benchmarks in the specified time frame. Additionally, the bill provides that a nonprofit hospital system that fails to achieve the benchmarks in the specified time frame forfeits its tax-exempt status and all property of the nonprofit hospital shall be subject to property tax assessment and taxation beginning on the next assessment date.
HB 1041: Student eligibility in interscholastic sports
Signed by the Governor.
The bill prohibits a male, based on the student's biological sex at birth in accordance with the student's genetics and reproductive biology, from participating on an Indiana public and private colleges’ athletic team or sport designated as being a female, women's, or girls' athletic team/sport. It requires public and private colleges to establish grievance procedures for a violation of the law.
HB 1453: Pediatric cancer research and treatment grant
Passed Senate 48-0 and House concurred with Senate amendments 90-0.
The bill establishes the pediatric cancer research and treatment grant program to be administered by the Indiana Department of Health (IDOH) and establishes the pediatric cancer research and treatment fund. It sets forth requirements for an entity to receive a grant and requires IDOH to develop criteria, policies, procedures, and a plan concerning awarding of the grants. State educational institutions may receive grant funding from the newly established grant program if they choose to apply and meet the eligibility requirements.
HB 1555: Licensure of foreign trained physicians
Conference committee held on Thursday, April 17.
The bill establishes a limited medical license for individuals who have graduated from certain international medical programs; obtain a health care facility sponsor in an underserved area; and meet certain other criteria.
HB 1634: Math education
This is a Governor’s Office/Indiana Department of Education priority bill. House concurred with Senate amendments 91-0.
The bill, among other provisions, establishes requirements regarding: (1) mathematics screening, evaluation, and intervention; and (2) teacher preparation program math curriculum and content.
Senate Bills
SB 146: Teacher compensation
This is a Governor’s Office/Indiana Department of Education priority bill. Senate dissented to House amendments.
The bill, among other provisions, removes a prohibition on ranking teacher preparation programs. Beginning June 30, 2025: (1) increases the minimum salary for a teacher employed by a school corporation to $45,000 (current law requires $40,000); and (2) requires a school corporation to expend an amount for teacher compensation that is not less than 65% of state tuition support (current law requires 62%).
SB 289: Nondiscrimination in employment and education
Passed House 67-27 and Senate dissented to House amendments.
The bill had a “strip and insert” amendment which repeals provisions concerning university diversity committees. The bill prohibits unlawful discrimination in education, public employment, and licensure. It prohibits a public employer from requiring training asserting that, or endorsing the theory that, a person with a certain personal characteristic: (1) is inherently superior or inferior to a person with a different personal characteristic; (2) should be blamed for actions committed in the past; or (3) has a moral character that is determined by a personal characteristic of the person. The bill permits a person injured by a violation to bring a civil action for actual damages, or liquidated damages of: (1) $50,000 for a first offense; and (2) $100,000 for a second or subsequent offense.
SB 365: Education matters
Senate concurred with House amendments 37-1.
The bill requires the Indiana Department of Education (IDOE), in collaboration with CHE and DWD, to create a combined return on investment report for specified programs, including the 21st Century Scholars program. It also moves the career navigation coaching system developed by CHE to the IDOE to administer and implement and eliminates state educational institutions as an eligible entity to apply for grants to provide career coaching under the system.
SB 448: Higher education and workforce development matters
This is the CHE Agency/Governor’s Office priority bill. Passed House 75-21 and Senate concurred with House amendments 39-3.
The bill, among other provisions, provides that before the Indiana Commission for Higher Education (CHE) approves or disapproves a degree or program, a state educational institution shall provide, and the commission shall consider, certain information regarding the degree or program. It requires CHE to: (1) review each degree or program for approval or disapproval at least one time every 10 years; (2) outline a process for degree and program monitoring, improvement, suspension, and closure; and (3) publish certain information. The bill requires a state educational institution to approve for admission Indiana residents who graduate with the new Honors Plus Enrollment Seal. It requires the board of trustees of a state educational institution to do the following: (1) When reviewing tenured faculty members, assess and review the staffing needs of the institution based on the branches, campuses, extension centers, colleges, schools, and degree and programs of the institution; and (2) Submit to CHE any review of, renewal of, or amendment to the process or criteria regarding the tenured faculty member review. The bill requires CHE to promptly review the process and criteria and provide feedback to a board of trustees. It mandates CHE report student enrollment data to the Legislative Council by November 1 each year.
SB 473: Various health care matters
Passed House 93-0 and Senate concurred with House amendments 41-0.
Requires a nursing program to offer a clinical experience for clinical hours in a hospital and a health facility setting. It also establishes the certified health care professions commission and sets forth the commission's duties, including the certification of nurse aides and qualified medication aides; and the administration of the certified nurse aide registry.
SB 480: Prior authorization
Passed House 94-0 and Senate concurred with House amendments 39-2.
The bill sets forth requirements for a utilization review entity that requires prior authorization of a health care service. The bill provides that a claim for reimbursement for a covered service or item provided to a certain individual may not be denied on the sole basis that the referring provider is an out of network provider.
SB 516: Economic development
Senate concurred with House amendments 41-0.
The bill establishes the Indiana Office of Entrepreneurship and Innovation and specifies the duties of the office. In addition, the bill makes changes to the Indiana Economic Development Corporation’s (IEDC) leadership structure and places additional guardrails on the IEDC’s operations.