Indiana Lawmakers Conclude 2025 Session with Budget Cuts and Controversial Measures

Indiana lawmakers have concluded their 2025 legislative session, with a focus on budget cuts and controversial measures. One of the most talked-about bills this session allows school board candidates to declare a political party affiliation.

Despite backlash from educators and the Indiana School Boards Association, the bill passed with a vote of 26-24, with all Democrats opposing it and several Republicans joining them.

"We are evaluating national firms as we speak and we expect to have one hired in the next few weeks," said David Adams, Indiana Secretary of Commerce. "Once the firm is on board, we expect this audit to take anywhere from six to 12 months."

The state budget remains uncertain as lawmakers finalize bills. The final budget includes cuts to higher education, public health, and various line items.

Higher education funding will face a 5% cut to both operations and replacement and renewal funds. Public health funding will be reduced from $100 million annually to $40 million per year.

The budget bill also requires colleges to review degree programs and develop a plan of action if enrollment is insufficient.

Other notable provisions in the budget include:

• Mandating state officials to report expenses and funding used for official travel to the budget committee.
• Increasing the cigarette tax by $2 per pack for cigarettes weighing not more than three pounds per 1,000 and proportionately for heavier cigarettes, as well as for various tobacco and alternative smoking products.
• Granting free state park admission to Gold Star family members.
• Funding from the local public health fund may only support Indiana residents who are legal U.S. citizens.
• Removing annual income caps for choice scholarship eligibility beginning June 29, 2026.
• Evaluating the impact of lifting caseload limitations for the Department of Child Services.
• Creating an office of entrepreneurship and innovation with a $1 million allocation in the budget.

"I think that's being done because the current process has not maybe yielded the proper results on the entirety of how you would want that important part of our state to be run," said Governor Mike Braun regarding changes to Indiana University’s Board of Trustees.