A mixed bag as the 2025 legislative session ends

At 1:38 a.m. on April 25, the Indiana General Assembly adjourned sine die (a Latin term meaning that there is no set date for the resumption of its work). Our Policy Team was at the Statehouse until the legislature concluded its work, continuing to advocate on behalf of households across Central Indiana.

Gov. Mike Braun now can consider which bills to sign, which to veto, and which to allow to become law without his signature. You can check on the status of each bill on the Governor’s Bill Watch page. 

A quick summary of a long session is tough, but I will offer that the 2025 legislative session was a mixed bag. New administrations bring fresh ideas and new opportunities, and while our leaders did take advantage of some of them, some chances to meaningfully build on efforts of the last several years slipped by (in no small part due to a challenging fiscal outlook for Indiana during the next two years).  

Needing to find $2.4 billion in savings and/or new revenue during the last week of a legislative session (owing to a negative revenue projection) meant many valuable programs saw cuts. A desire to respond to voter interest in tax relief meant leaders faced tough choices in what to fund and at what levels. Indiana’s legislature certainly had an unenviable task. 

And yet, there were some small wins in the areas of child care and housing. We also advanced several key conversations around issues of medical debt and health care and on other types of family-supportive policies like paid family leave.  

Our team comes away with some frustration over our leaders not accomplishing more, but also with a sense of relief that despite the challenging economic circumstances we were able to accomplish a few, meaningful things to support families and communities.  

Most importantly, our team saw so much commitment and enthusiasm from our network of advocates: calling, writing, emailing and showing up for Hoosiers and for Central Indiana. If nothing else, you showed what it will take to continue to help ensure people can live the lives they are capable of living: effort, voice and presence. We look forward to working with you in the years ahead. 

Here's a summary of some of the key accomplishments from this legislative session: 

Early Care and Learning 

From a funding perspective, our state’s key early care and learning programs took modest cuts as a result of the state’s April revenue projections. From pre-k to child care, everything took a flat 5% cut from the proposals passed by the House and the Senate earlier in the session. 

In House Bill 1001 (the biennial budget), the final version included $147 million in “hold harmless” funding for current recipients of the Child Care and Development Fund (CCDF) vouchers, meaning those children will get to keep their vouchers and there should be no disruptions in their care. The funding levels for the state’s CCDF match were reduced to $39.4 million annually, and the On My Way Pre-K (OMWPK) program was reduced to $26 million annually. There were also small cuts to the School Aged Child Care Grant and the line item for our partners at Visually Impaired Preschool Services. 

One of the more disappointing things in the budget bill was not fiscal: changes to the income eligibility thresholds and work requirements for CCDF and OMWPK. For new OMWPK enrollees, families must be at or below 135% of the federal poverty line to qualify (with exceptions for limited eligibility families and the children of child care workers), down from 150% of federal poverty. Work requirements were also changed to eliminate child care subsidies while individuals look for work. In the budget bill, individuals must be actively working or in an education/training program to qualify. 

On the tax front, several new and existing tax credits and exemptions were advanced. In Senate Bill 463, the employer child care tax credit was extended for another two years. In House Bill 1427, a new partial property tax exemption was created for employers who provide on-site child care for their employees, and a property tax exemption for for-profit child care providers was also created. These tax changes should help further incentivize the creation or expansion of child care opportunities in our communities.  

Finally, in a bit of non-fiscal progress, House Bill 1253 directs the creation of a multi-site licensure category for child care providers that operate more than one location (think of the YMCA or Boys and Girls Club), easing administrative burdens as those entities attempt to expand to serve more children. House Bill 1102 also allows public school corporations to enter into agreements with religious nonprofits to provide pre-kindergarten services (something they could already do for school-aged care programs), creating additional options and flexibility for schools. 

Safe and Affordable Housing 

House Bill 1005 included language creating priority access to a revolving loan fund to be used for expanding housing options in communities that have adopted pro-development land use policies. The revolving loan fund was also included in the budget bill at $25 million. We look forward to working with local governments and our partners to advocate for the adoption of these policies and the creation of more housing opportunities. 

Senate Bill 142 was a rare win for renters and those who have experienced an eviction. It streamlines the eviction expungement process, making it easier for both landlords and their former tenants to put finality to the eviction process.  

Finally, one enormous win for those experiencing homelessness was the defeat of efforts to criminalize homelessness. Several bills contained language at various points that would have created a misdemeanor criminal offense for individuals who are sleeping outside or camping in public spaces, and this would have put tremendous strain on our justice system, homeless prevention and mental health providers, and the individuals themselves. Fortunately, thanks to the hard work of our partners in the Hoosier Housing Needs Coalition, these efforts were stymied, and that language did not make it across the finish line. 

Health Care and Medical Debt 

As you may recall, an earlier effort to codify further consumer protections around medical debt ultimately failed in the Senate. While we were unable to find a new home for that language, we hope to pursue a legislative summer study committee that would explore how to strengthen our state’s policies around medical debt and health care costs. 

Additionally, as part of the budget bill, the state will implement a long-standing priority for United Way of Central Indiana: a $2 per pack increase in the state’s cigarette tax (and a corresponding increase in taxes on other tobacco and vape products). Not only will this increase help fund the growth in Medicaid spending, but it should also improve Hoosier health over the long term. 

Family Supportive Policies 
Our team worked closely with the Indiana Community Action Poverty Institute, Indiana Coalition Against Domestic Violence, Prosperity Indiana and other partners to help advance key legislative conversations around paid family leave and a newborn tax credit this session. With the signing of an executive order expanding paid leave for state employees during the legislative session, we think there are opportunities  next session to create paid leave options for more families across our state.