HB 1001 / Chamber Supports in Part
Last week, the Indiana House of Representatives advanced House Bill 1001, the state’s two-year budget plan, on a 66-28 party-line vote, sending it to the Senate for further consideration. The $54 billion spending package, crafted by House Republicans, includes modest increases for K-12 education, expanded school vouchers and workforce development initiatives.
Key Provisions in HB 1001
Economic Development: House Republicans added back funding for the Direct Flights program, which has been a funding priority of the Indiana Chamber. Governor Mike Braun’s introduced version of the budget eliminated funding for the program. Other funding that was restored or increased includes the Manufacturing Readiness Grant program ($20 million per year), the 21st Century Research and Technology Fund ($32.75 million per year) and funding for business promotion and innovation ($17 million per year).
Workforce Development: The budget establishes the Hoosier Workforce Upskill Program, allocating $15 million in grants to help businesses offset employee training costs.
Public Health and Medicaid: Funding for secured school safety grants increases, but public health funding is cut from $150 million annually to $100 million. Republican members of the Ways and Means Committee defeated an amendment from Rep. Ed DeLaney (D-Indianapolis) that would increase the cigarette tax by $2 per pack, which is a key Chamber priority. The importance of this measure is articulated in our mid-session press release, and we remain hopeful that Senate Republicans will consider a cigarette tax increase in the second half of the legislative session.
Republicans defended the budget’s “constrained” approach, citing potential federal spending cuts under the Trump administration that could impact Medicaid, education and other programs. House Speaker Todd Huston stated that legislators “are paying attention and watching” for changes in federal funding that may impact state finances.
As the budget moves to the Senate, the Chamber will continue to advocate for workforce investments, infrastructure funding and policies that strengthen Indiana’s business climate.
