Indianapolis

Indiana Legislators Culminate Session with Balanced Budget and Tax Relief for Hoosiers

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Published on May 12, 2025
Indiana Legislators Culminate Session with Balanced Budget and Tax Relief for HoosiersSource: Unsplash/Scott Graham

The legislative session in Indiana has wrapped up with lawmakers delivering on a slate of priorities, including a balanced two-year state budget along with substantial tax relief for residents. According to information from Indiana House Republicans, the budget measures promise to keep the state confidently on a sound fiscal path, backing key sectors such as agriculture and rural communities. State Rep. Beau Baird (R-Greencastle) stated, "I'm proud we delivered tax relief, promoted energy innovation and increased health care access."

Among the key financial decisions, legislators approved a gradual reduction of Indiana's state income tax over the next two years, a change that expects to save taxpayers in excess of $200 million annually. Alongside, noteworthy property tax relief was advanced, which when combined with income tax cuts, is projected to net a $1.3 billion saving for Hoosiers within two years. Regardless of these cuts, the budget saw increased investments in K-12 education and public safety. State Rep. Jeff Thompson (R-Lizton), chair of the House Ways and Means Committee shared, "Our new state budget once again focuses on government efficiency and maintaining sensible reserves while funding critical services." Yet he noted, the session entailed "tough but necessary cuts" to further preserve taxpayer dollars, as detailed by Indiana House Republicans.

All eight of the House Republican priority items made it to the Governor's desk by the end of the session, marking a sweeping legislative success. These items include a balanced budget (House Enrolled Act 1001), regulatory reductions in K-12 schools (House Enrolled Act 1002), lowered healthcare costs (House Enrolled Act 1003), ensuring nonprofit hospitals remain focused on healthcare (House Enrolled Act 1004), and expanding housing access through the Residential Housing Infrastructure Assistance Program (House Enrolled Act 1005). Public safety measures also received a boost with the establishment of a review board to oversee prosecutors (House Enrolled Act 1006), and efforts to meet today's energy demands (House Enrolled Act 1007). Additionally, an invitation extended to Illinois counties interested in seceding to join Indiana was also part of the legislative wins (House Enrolled Act 1008).

State Rep. Matt Commons (R-Williamsport) noted the session's achievements with enthusiasm, "I'm excited to see the positive change these new laws will bring and look forward to hearing from my district." State Rep. Mark Genda (R-Frankfort) echoed this sentiment, acknowledging the fiscal discipline exercised in the session, "We tightened our belts this session, and made tough but necessary cuts to save Hoosiers more of their hard-earned money," as stated in Indiana House Republicans' release