The sixteenth and final week of the budget session ended in the early hours of the morning today when both chambers of the Indiana General Assembly adjourned “Sine Die.” During the coming days, the governor must decide whether to sign, veto or allow bills to become law without his signature.
This will be the final weekly Statehouse Update until the beginning of the 2026 short session. An archive of previous updates be found here.
Bills That Passed on the Final Day
HB 1001: State budget
Passed both chambers and ready for Governor signature or veto.
Due to the dismal April revenue forecast, the final state budget cuts operating appropriations funding by 5% for all state educational institutions at FY25 levels, with FY25 outcomes-based performance funding (OBPF) earned included. Repair & rehabilitation (R&R) funding was funded at $41.8M in FY26 (all front loaded in the first year of the biennium), resulting in $4M increase over total IU R&R funding from last biennium. Regional Campus Deferred Maintenance was funded at $9.3M 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 cut by 5% and no new line items were included.
Other provisions in the budget include:
- Requiring the State Budget Agency and State Budget Director to hold back 5% “from each appropriation” for state agencies and state educational institutions in each year of the biennium (it excludes debt service for state educational institutions)
- Requiring the Secretary of Education to provide a report to the Indiana General Assembly on the future of dual credit funding and alignment
- Reverting unspent money from the Indiana Commission for Higher Education (CHE) in the Frank O’Bannon grant program back to the state general fund but still allows CHE to transfer unspent funds to the 21st Century Scholars fund and/or Adult Student Grant fund each fiscal year
- Requiring CHE to report on the utilization of physical facilities primarily used for instruction at each state educational institution
- Providing if (1) the average number of students graduating in a degree program is below a certain threshold; and (2) the institution would like to continue the degree program; the institution must request approval from CHE
- Changing the IU Board of Trustees to nine members all appointed by the Governor
- At least five members must be IU alumni
- Upon passage, the Governor may remove and replace a member who was elected by the IU alumni
- At least five members must be residents of Indiana
- Requirement that no more than three members may reside in the same county remains
- Eliminates the three IU alumni trustee positions and IU alumni election process
- Prohibits an IU employee (outside of a student) from serving as a member of the IU Board of Trustees
- Creates a three (3) term limit for board members (9 years maximum)
- Changes the student trustee’s term from two (2) years of one (1) year
- Requiring the Board of Trustees of each state educational institution to establish a post tenure review process that measures productivity and a review process regarding department level promotions and tenure exception; and requiring faculty members to post syllabi to an institution’s website
- Providing that: (1) faculty governance organization meetings must be open to the public; (2) faculty governance organization actions are advisory only; and (3) members of faculty governance organizations must be employees of the institution to vote
- Requiring state educational institutions to review each degree program at least once every seven years, submit the results to CHE and post the review on the applicable institution’s website
HB 1002: Various education matters
Passed both chambers and ready for Governor signature or veto.
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 both chambers and ready for Governor signature or veto.
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 both chambers and ready for Governor signature or veto.
Not later than June 30, 2029, an Indiana nonprofit hospital system's aggregate average inpatient and outpatient hospital prices shall at least be equal to or less than the statewide average inpatient and outpatient hospital prices determined by the Office of Management and Budget (OMB). Penalties for five nonprofit health systems exceeding “price caps” occur in 2029, after the OMB identifies the “average hospital rate” for certain inpatient and outpatient services. Additionally, the bill provides that a nonprofit hospital system that fails to achieve certain benchmarks forfeits its tax-exempt status.
HB 1515: Education and higher education matters
Passed both chambers and ready for Governor signature or veto.
The bill, among other provisions, sets certain requirements pertaining to standardized admissions tests for graduate or postgraduate health education programs. It requires all graduate or postgraduate health education programs to be graded either “A through F’’ or utilize another merit-based system (rather than pass/fail). The bill creates a new scholarship to be administered by CHE (without state funds) for law students and designed to attract and retain full-time prosecuting attorney or full-time public defender positions. Students receiving the scholarship must work for five (5) years in public service as a deputy prosecuting attorney or public defender full time in Indiana immediately after being admitted to practice law in Indiana. Scholarship amounts to $20,000 per academic year for full time (for three years) and $15,000 per academic year for part time students (for four years).
SB 289: Nondiscrimination in employment and education
Passed both chambers and ready for Governor signature or veto.
The bill repeals provisions concerning university diversity committees. The bill prohibits unlawful discrimination in education, public employment, and licensure. It does allow participation in public contracts by a minority business enterprise, women's business enterprise, and veteran business enterprise, as currently authorized by law. It permits scholarships based on a personal characteristic of the recipient if the scholarship is not funded by state funds or resources and permits the renewal of specified state funded minority teaching scholarships for those recipients who were initially awarded the scholarship before July 1, 2025. The bill changes the criteria for certain state funded teaching scholarships from minority status to residence in an underserved county and an agreement to teach in an underserved county. 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, court costs, and injunctive relief.
Bills Still Awaiting the Governor's Signature
HB 1453: Pediatric cancer research and treatment grant
Passed both chambers and ready for Governor signature or veto.
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
Passed both chambers and ready for Governor signature or veto.
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
Passed both chambers and ready for Governor signature or veto.
The bill, among other provisions, establishes requirements regarding: (1) mathematics screening, evaluation, and intervention; and (2) teacher preparation program math curriculum and content.
SB 146: Teacher compensation
Passed both chambers and ready for Governor signature or veto.
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 365: Education matters
Passed both chambers and ready for Governor signature or veto.
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
Passed both chambers and ready for Governor signature or veto.
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 both chambers and ready for Governor signature or veto.
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 both chambers and ready for Governor signature or veto.
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
Passed both chambers and ready for Governor signature or veto.
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.