2025 State Budget Bill Takes Shape

INDIANAPOLIS — Governor Mike Braun and Republican leaders introduced the finalized version of the state's 2025 budget on Wednesday. The budget, which aims to address a $2.4 billion shortfall, includes significant cuts across various sectors.

Public health is facing the most notable cuts, with funding decreasing from $100 million per year to just $40 million annually. Lawmakers described this reduction as one of the most substantial.

Higher education is also expected to feel the impact, with a 5% cut to both its operations budget and replacement and renewal budget.

Despite these cuts, lawmakers were unable to fully offset the shortfall. To make up for some of the lost revenue, the budget includes a tax hike on tobacco products.

There was initial discussion about potentially freezing the gradual income tax decrease, but leadership ultimately decided to continue providing this tax relief to Hoosiers.