By Caryl Auslander ● February 3, 2026

• Senate Passes Massive Government Funding Package, Sending it to House
• Trump Names Former Federal Reserve Governor Warsh as the Next Fed Chair, to Replace Powell
• Who’s Running for Indiana’s Congressional, Legislative Seats
• State Representative exits GOP, eyes mayoral race
• Braun: Indiana Will Opt Into Federal Tax Credit for School Choice Scholarship
• Democrat House Rep. Ed DeLaney Calls for Legislative Probe into IEDC Activities
• General Statehouse Update
• Hendricks County Chambers Update
• Action Items
• Important Dates

Senate Passes Massive Government Funding Package, Sending it to House

The Senate voted 71-29 to pass a major funding package, avoiding a prolonged government shutdown.

Why it matters: The package includes five regular appropriations bills and a two-week stopgap for the Department of Homeland Security, crucial for maintaining governmental operations.

• A public backlash against federal immigration enforcement tactics prompted Democrats to push for changes, influencing the package’s final form.

The big picture: The funding bill must still pass the House and be signed by President Trump, with the House returning on Monday.

• Speaker Mike Johnson aims to fast-track the bill using a suspension of the rules, requiring a two-thirds vote.

What’s next: Democrats secured victories by rejecting proposed cuts to social services and demanding reforms to ICE and CBP.



• The temporary DHS funding gives Congress two weeks to negotiate a more permanent solution. (The Hill)

Trump Names Former Federal Reserve Governor Warsh as the Next Fed Chair, to Replace Powell

President Donald Trump announced his intention to nominate Kevin Warsh, former Federal Reserve official, as the next chair of the Fed.

Why it matters: Warsh’s appointment could align the Fed closer to the White House, potentially compromising its independence.

• This could lead to a shift in how monetary policy is influenced by political agendas.

• The independence of the Fed has traditionally been a safeguard against political influence.

The big picture: Warsh, a former Fed governor, is known for his hawkish stance on interest rates, contrasting with Trump’s desire for lower rates.

• Warsh has historically advocated for higher interest rates to control inflation.

• Trump’s push for lower rates aims to stimulate economic growth.

What’s next: Warsh’s confirmation by the Senate could lead to significant policy shifts, impacting borrowing costs and the broader economy.

• A potential reduction in interest rates could affect mortgages, loans, and credit costs.

• The confirmation process will be closely watched for its economic implications.

Trump’s economic policies: Warsh supports Trump’s deregulatory stance, which he believes could reduce inflationary pressures.

• Deregulation is seen as a way to spur economic activity.

• Critics argue it could lead to increased fiscal risk. (IBJ)

Who’s Running for Indiana’s Congressional, Legislative Seats

The Indiana Capital Chronicle will update weekly on candidate filings for Indiana’s congressional and legislative seats ahead of the May 5 primary.

Why it matters: All nine U.S. House seats, 100 Indiana House seats, and half of the 50 Indiana Senate seats are open this election cycle.

What’s next: The filing period concludes this Friday at noon. Keep an eye out for weekly updates as the Chronicle tracks the political scene.

Go deeper: Use this link to see updated filing lists by district.

State Representative exits GOP, eyes mayoral race

Republican Rep. Ed Clere is leaving the Indiana General Assembly after 18 years, citing political shifts under President Trump as a key factor.

Why it matters: Clere plans to run as an independent candidate for New Albany mayor in 2027.

Zoom out: Clere’s legislative focus on social safety nets and opposition to divisive issues highlights a broader ideological divide.

• He opposed recent GOP-backed bills on abortion, transgender care, and partisan school board elections.

The bottom line: Clere intends to serve out his term as a Republican but remains critical of the party’s direction. After his announcement, he was promptly removed from the Indiana House Republican caucus. His committee assignments will remain. (Indiana Capital Chronicle)

Braun: Indiana Will Opt Into Federal Tax Credit for School Choice Scholarship

The office of Indiana Gov. Mike Braun announced that the state will join a new federal tax credit initiative for K-12 school choice scholarships.

Why it matters: This move allows Hoosiers to benefit from federal tax savings, supporting educational investments and making quality education more affordable.

• Families can use scholarships for tuition, tutoring, and more.



• The initiative begins Jan. 1, 2027, offering up to $1,700 in nonrefundable federal tax credits for contributions.

The big picture: Under President Trump’s leadership, this program aligns with Indiana’s strategy to prioritize universal school choice and expand educational opportunities.

What they’re saying: Indiana’s Secretary of Education, Katie Jenner, highlighted the state’s diverse educational options, emphasizing the new tax credit’s role in driving investments and enhancing access to quality education.

The bottom line: This federal initiative complements Indiana’s existing 50% state tax credit for donors, encouraging further contributions to scholarship-granting organizations. (Fox59)

Democrat House Rep. Ed DeLaney Calls for Legislative Probe into IEDC Activities

Democratic state Rep. Ed DeLaney from Indianapolis is pushing for a deeper investigation into the Indiana Economic Development Corp. (IEDC) following a critical audit.

Why it matters: The audit revealed significant conflicts of interest and transparency issues within the IEDC, raising concerns about the misuse of public funds.

• DeLaney proposes a House select committee to further investigate these financial dealings and ensure accountability.

The big picture: Gov. Mike Braun had previously ordered a forensic audit of the IEDC and related entities, which highlighted inadequate policies and lavish spending.

• Despite Braun’s moves to restructure the IEDC, the audit’s implications remain a hot topic, especially among Democrats.

What’s next: DeLaney’s resolution seeks support from the Republican supermajority to form a committee with subpoena power.

• The committee would consist of 11 members, tasked with delivering recommendations for improved transparency and stewardship of public funds. (Inside Indiana Business)

General Statehouse Update

Welcome to the longest “short session” the Indiana General Assembly can remember. The Statehouse is buzzing as legislators juggle an overloaded committee schedule, shifting calendars from last weekend’s snowmageddon (with many legislators and lobbyists having to bring their children to the statehouse due to no school), and lots of seasonal illnesses making the rounds. It has been a crowded, fast-moving start to the session—and everyone is feeling the pace.



Committee meetings and the House session were canceled on Monday, but the Senate soldiered on, despite record snowfall in Indianapolis and areas surrounding. The Ways and Means room was damaged by the storm, and meetings were shuffled to other meeting rooms in the Statehouse early on Tuesday morning. Because of the closure of the state government on Monday, deadlines were shifted in the House, and the deadline for bills to move out of the House Chamber is now this coming Monday. The Senate has not changed its deadlines, and its work for the first half is completed.

Many bills were passed this week, but some significant issues hit the cutting room floor, including iGaming, social media ban for kids, and HB 1119 - the firing squad bill, although it could be revived before Monday’s official deadline.



HB 1001, which aims to lower housing costs, passed this week 76-15. It comes after heated discussion amongst mayors and municipal leaders who contend that the bill reduces local control in efforts to mitigate housing costs. The discussion will continue as the bill heads to the Senate under the guidance of Majority Floor Leader Sen. Chris Garten (R-Charlestown).

Continuing in the affordability conversation, HB 1002, which aims to lower Hoosiers’ utility bills, passed late Wednesday, with conversation extending more than half an hour. Debate was varied, with statements supporting codifying programs for low-income payment assistance and data reporting, but also lamenting the fact that the ‘levelized billing’ component still needs work. The bill ended up garnering only four no votes. Interesting tidbit - conversations on eliminating the sales tax on Hoosiers’ utility bills were heard in amendments to HB 1002 from House Democrats and in an amendment to SB 243 - a various tax matters bill authored by Senator Mike Young (R-Indianapolis). While none of the attempts were successful, HB 1002 heads to the Senate for further discussion.

There was a landmark agreement on a one-year income tax break on overtime and tips when the House approved SB 212 unanimously, sending the bill to Governor Braun, where it awaits his signature. This will be the first bill of the session to potentially be signed into law, as it was “fast-tracked” to be ready for the 2026 tax season.

HB 1177 expands the existing employer childcare expense tax credit to a larger pool of potential businesses and permits, for the first time, businesses to claim expenses related to childcare, including tuition payments to childcare providers made on behalf of the children of the taxpayer's employees. It also includes language that would allow local redevelopment commissions the ability to use tax increment financing (TIF) funding to support childcare. The bill will be up for a final vote Monday in the House.

Last week Hoosiers received some great news with the addition of language into SB 4, authored by Sen. Ryan Mishler (R-Bremen) that gives the State Budget Agency (with approval from Budget Committee) the ability to repurpose some or all of the Financial Responsibility and Opportunity Growth (FROG) Fund, which is a $300M pool of money set aside in the budget to fill shortfalls in Family and Social Services Administration, Medicaid, Department of Child Services, or Department of Corrections, to support the Child Care Development Fund (CCDF) program. The change came amidst the growing outcry of childcare providers and Hoosiers alike who have seen the CCDF program cause the closure of daycares, in addition to the continuation of the childcare affordability challenge.

Unlike in previous years, there will be no extended break during the legislature’s halftime. So Torchbearer Public Affairs and the Indiana General Assembly will be full steam ahead as we await committee announcements for the second half of session. We have three weeks of committee hearings and a short 3-day Conference Committee window. So hold on to your hats, because the next four weeks are about to be crazy.

Hendricks County Chambers Update

We are *this* close to the half-way point of the legislative session for 2026. The Senate wrapped up their first-half with Third Reading deadline on Thursday. The House pushed back their Third Reading deadline until this upcoming Monday, February 1st. Your bill track may look a little different this week, as any Senate bills that are dead are now removed from your list. The House will follow suit next week. We will keep you posted in real time with committee hearings and updates for your priority bills. Please reach out with any questions or concerns.

Topic: Tax Conformity

Bill #/Title (linked): SB 212 (State income tax conformity)

Update:

• SB 212 (Sen. Holdman) updates Indiana’s conformity with the Internal Revenue Code, aligning state tax law with federal changes enacted through July 4, 2025, for specified provisions impacting individual and corporate income taxes and related tax attributes.
• The bill ensures consistency between state and federal tax treatment, provides clarity for taxpayers and the Department of Revenue, and includes retroactive and emergency provisions to avoid gaps or uncertainty in tax administration.
• As enrolled, the bill maintains Indiana’s rolling conformity approach for targeted federal provisions while preserving existing state-specific deviations where required.

Action Items:

• SB 212 has passed both chambers and has been signed by the Speaker. It now awaits the President Pro Tempore’s signature and will then be the first bill of the 2026 session to be sent to the Governor’s desk for signature.

Topic: Priority Bills

Bill #/Title (linked): HB 1001 (Housing Matters)

Update:

• HB 1001 aims to increase housing supply and improve affordability by limiting certain local barriers of zoning and creating more consistency for development statewide.
• The bill adds more structure around local fees and housing-related reporting to improve transparency and predictability.
• Amendment #3 (adopted by consent) made several negotiated changes, including swapping out townhome language for duplex language, ensuring impact fee statute changes are prospective, allowing impact fees for recreation infrastructure, and requiring an ADU to have a “will serve” letter from a water/sewer provider.
• 2nd Reading Amendment #1: Requires counties/cities/towns to submit an annual housing report to IHCDA with key local metrics (ex: median sale price, median rent, units built/occupied by type, affordability brackets, and any opt-outs/justifications).
• 2nd Reading Amendment #2: Directs IHCDA to compile those local submissions and publish a statewide annual housing report.

Action Items:

• HB 1001 passed the House on a 76–15 vote and now moves to the Senate, where it will be sponsored by Sen. Garten, who serves as Senate Majority Leader.

Bill #/Title (linked): HB 1003 (Boards and commissions)

Update:

• HB 1003 is a broad government restructuring bill that eliminates, consolidates, or modifies numerous state boards, commissions, committees, and councils that are inactive, duplicative, or no longer aligned with current state functions. The bill is intended to streamline state government operations, reduce redundancy, and clarify statutory authority across agencies.
• House Ways & Means approved an amended version of the bill in a vote of 13-6. The amendments made technical corrections and removed language merging the occupational therapy, physical therapy, and athletic training boards.
• Six amendments were accepted on second reading:
• Amendment #2: Clarifies that building codes will continue to go through rulemaking to avoid expiration instead of extending into perpetuity as well as the application of Indiana EMS Commission rules to the Indiana Fire and EMS Standards and Education Commission.
• Amendment #3: Includes technical corrections from the Legislative Services Agency.
• Amendment #5: Removes language that would have moved the Egg Board from Purdue to the State Board of Animal Health. It will remain at Purdue.
• Amendment #7: Allows members of the Indiana Civil Rights Commission to receive per diem, which had inadvertently been omitted.
• Amendment #9: The four Indiana Cultural Commission appointees will now be made by the Republican and Democrat leaders of each legislative chamber instead of the House and Senate Republican leaders appointing both a majority and minority appointee.
• Amendment #10: Restores the Northwest Indiana Professional Sports Development Commission language that had previously been eliminated.

Action Items:

• HB 1003 was engrossed on second reading, and a final House vote will take place on Monday.

Topic: Various Tax Matters

Bill #/Title (linked): SB 243 (Various tax matters)

Update:

• SB 243 is an omnibus tax package that updates Indiana tax law, including conformity changes and several Department of Revenue administrative/enforcement provisions.
• Adopted amendments in committee this week include rounding down certain taxes/penalties/fines (penny phaseout concept) and changes related to airplane excise taxes.
• Adds a one-year coupling proposal tied to deductions for tips, overtime pay, and passenger vehicle loan interest (retroactive to Jan. 2026 for one year).

Action Items:

• The bill advanced to the Senate floor, where multiple second-reading amendments failed. The measure ultimately passed on third reading by a 47–1 vote and now heads to the House, where it will be sponsored by Rep. Thompson.

Topic: Townships

Bill #/Title (linked): HB 1315 (Township reorganization)

Update:

• HB 1315 (Rep. Shonkwiler) creates a framework to reorganize and dissolve certain townships beginning January 1, 2028, transferring township duties, assets, and services to a designated municipality or county through a joint board and adopted reorganization plan. The bill establishes eligibility criteria, timelines, and governance requirements for the transition.
• On 2nd reading, Amendment #2 (Rep. Shonkwiler) was adopted to refine the reorganization mechanics by adjusting deadlines, clarifying the role and composition of the joint board, and creating township services districts and levies to ensure services and taxation continue in a structured, transparent way after reorganization.
• As amended, the bill ensures continuity of township services—including fire protection—by clarifying how service territories and districts carry forward and how the designated unit steps into the township’s role.

Action Items:

• HB 1315 was engrossed on second reading, and a final House vote is expected Monday.

Bill #/Title (linked): SB 270 (Township mergers)

Update:

• SB 270 would merge certain townships as part of a data-driven plan intended to improve efficiency while maintaining “government closest to the people.”
• Sen. Rick Niemeyer emphasized the bill is about merging—not eliminating—townships, and was developed with input from the Township Association using available DLGF data/metrics.
• This proposal is supported by the Indiana Township Association, as opposed to the House bill HB 1315.
• The bill passed in a vote of 39-9 in the Senate.

Action Items:

• Rep. Hal Slager will sponsor the bill in the House

Topic: Child Care

Bill #/Title (linked): HB 1177 (Child care assistance)

Update:

• HB 1177 expands Indiana’s employer child care expenditure tax credit by increasing the maximum size of an eligible employer from 100 employees to 500 employees.
• The bill also broadens what counts as a “qualified child care expenditure,” including operating costs for employer-supported child care, contracts with child care providers (including through an intermediate entity), and certain employee support costs like training, scholarships, and increased compensation tied to training.
• HB 1177 also allows TIF (tax increment) revenue to be used to support the construction, expansion, or ongoing operation of child care facilities.
• The Indiana Chamber of Commerce and other local/regional chambers testified in support of the bill but there was some opposition testimony from providers that felt that more help was needed for them, instead of for employers.

Action Items:

• HB 1177 was engrossed on second reading with no additional amendments and now awaits its final vote in the House on Monday.

Bill #/Title (linked): SB 4 (Various Fiscal Matters)

Update:

• SB 4 (Sen. Mishler) is an omnibus “various fiscal matters” bill addressing multiple state and local finance issues, including fiscal impact analysis of executive orders, tax credit oversight, local budget administration, and community mental health center (CMHC) funding frameworks. The bill also retains language allowing certain appropriations to be used to support the Child Care and Development Fund (CCDF) voucher program, subject to Budget Committee review.
• 2nd Reading – Amendment #8 (Sen. Mishler) refined CMHC funding provisions by restoring clearer statutory structure around county funding obligations, allowable funding sources (excluding federal funds), service locations, and reporting requirements—providing greater predictability and consistency while maintaining local flexibility.
• 2nd Reading – Amendment #4 (Sen. Holdman) significantly narrowed the bill by removing several earlier sections unrelated to core fiscal matters, focusing SB 4 more tightly on state budgeting, oversight, and CMHC-related provisions rather than broader policy changes.

Action Items:

• SB 4 passed the Senate on a 48–0 vote and now moves to the House, where it will be sponsored by Rep. Snow.

Topic: Department of Local Government Finance

Bill #/Title (linked): HB 1210 (DLGF)

Update:

• HB 1210 (Rep. Snow) is the annual Department of Local Government Finance omnibus bill, making broad updates to Indiana’s property tax and local fiscal policies, including administrative clean-up, modernization, and technical fixes across multiple chapters of code.
• Four amendments were added on the House floor:
• Amendment #1: Fixed drafting errors.
• Amendment #3: Added language originally found in HB 1347 to address bonding for the Lake County Convention Center.
• Amendment #4: Allows a retroactive application for tax exemption for some properties of a not-for-profit.
• Amendment #6: Removes a 5% passthrough if the county auditor fails to meet the deadline and changes a failure to notify date.

Action Items:

• HB 1210 will be eligible for a final floor vote on Monday, the House’s third reading deadline.

Topic: Homelessness

Bill #/Title (linked): SB 285 (Housing Matters)

Update:

• SB 285 (Sen. Carrasco) establishes a statewide framework prohibiting unauthorized long-term street camping, sleeping, or use of public land for shelter on property owned by the state or a political subdivision, unless expressly authorized by law. The bill creates uniform enforcement standards and includes reporting and accountability requirements tied to homelessness services and law enforcement activity.
• The bill requires law enforcement to issue an initial warning before enforcement may escalate and preserves eligibility for diversion programs and emergency detention when appropriate.
• On 2nd reading, Amendment #6 (Sen. Carrasco) refined enforcement mechanics by replacing the requirement to offer transportation to shelter with a requirement to provide information on authorized service or shelter locations, clarifying that a misdemeanor applies only after a warning and a 48-hour waiting period within a defined geographic radius.

Action Items:

• SB 285 passed the Senate on a 29–19 vote and now moves to the House, where it will be sponsored by Rep. Doug Miller.

Topic: Foreign-Adversary Policy

Bill #/Title (linked): SB 256 (Political Activity of Agents of Hostile Nations)

Update:

• SB 256 (Sen. Garten) creates a Hostile Foreign Agent Registration requirement, mandating registration with the Attorney General for individuals acting on behalf of hostile foreign principals before engaging in political activity in Indiana.
• 2nd Reading Amendment: Amendment #1 (Sen. Garten) reorganized and clarified the bill by consolidating provisions into a single chapter, refining key definitions, and narrowing the scope to focus on foreign-influenced political activity and enforceable registration requirements.
• As amended and according to the author, the bill establishes a clear, enforceable transparency framework with defined reporting, disclosure, and penalty provisions administered by the Attorney General.

Action Items:

• SB 256 passed the Senate on a 44–0 vote and now moves to the House, where it will be sponsored by Rep. Commons.

Topic: Foreign-Adversary Policy

Bill #/Title (linked): HB 1099 (Foreign adversaries)

Update:

• HB 1099 (Rep. Commons) addresses foreign-adversary concerns across state contracting, higher education, and real property ownership, including limits on technology contracts, new safeguards for foreign student enrollment in sensitive programs, and restrictions on foreign ownership of Indiana land.
• 2nd Reading Amendment #1 (Rep. Commons) expanded reporting requirements to include approved postsecondary institutions and requires those institutions to report current and historical foreign student enrollment data in qualifying programs to the Commission for Higher Education.
• As amended, the bill enhances data transparency and state oversight without changing the core admission or contracting restrictions tied to foreign adversaries.

Action Items:

• HB 1099 has been engrossed on second reading and awaits its final vote in the House on Monday.

Topic: Tort Reform

Bill #/Title (linked): HB 1417 (Causes of Action and Damages)

Update:

• HB 1417 (Rep. Matt Lehman) is the House omnibus tort reform bill.
• The bill’s scope was significantly narrowed via an amendment in House Judiciary in order to improve its chances of moving. The bill currently now only includes:
• Public nuisance language
• Increase in qualified settlement offer caps
• (For LYFT) TNC language was removed from the bill - but we are working to find another home for this language.
• The amended bill made it out of committee in a vote of 9-4 along party lines
• It was heard on House second reading on Thursday and was engrossed without further amendments.

Action Items:

• HB 1417 must receive a floor vote by the end of the day Monday, which is the House’s third reading deadline, in order to continue through the process.

Topic: Healthcare

Bill #/Title (linked): HB 1271 (Payment of health claims)

Update:

• HB 1271 adds new patient-facing transparency and payment protections for hospital services and health insurance claims. The bill requires hospitals to provide clear notice of payment assistance programs at registration/intake, discharge, and with the initial billing statement, and to make that information available through patient portals.
• The bill also limits insurer and HMO practices by restricting downcoding, prohibiting retroactive reductions to CPT reimbursement rates, and shortening the window for recoupment or retroactive audits of paid claims in most cases.
• On 2nd reading, Amendment #4 (Rep. McGuire) was adopted to refine notice timing and enforcement mechanics. The amendment clarifies when hospitals must provide payment assistance notices if a patient cannot reasonably receive them at intake, narrows recoupment eligibility to specific circumstances (e.g., fraud or duplicate payments), and clarifies applicability timelines for insurers and HMOs—tightening the bill’s scope while maintaining consumer protections.

Action Items:



• HB 1271 was engrossed on second reading, and a final House vote is expected next week.

Topic: Work Based Learning Liability

Bill #/Title (linked): HB 1098 (Work based learning liability)

Update:

• HB 1098 modernizes Indiana’s work-based learning liability framework to help employers participate more confidently in student workforce programs, while ensuring there are clear protections and responsibilities tied to insurance and coverage.
• Amendment #1 (Commons) was adopted by consent and made major updates to the bill by clarifying when liability insurance and workers’ compensation coverage are required, including apprenticeships, and requiring a written agreement that clearly spells out whether the employer or another party is responsible for carrying workers’ compensation and liability insurance.
• The bill also establishes clearer structure for intermediaries and employers, including outlining responsibilities in the work-based learning relationship and reinforcing that employers maintain oversight of student training in the workplace.

Action Items:

• HB 1098 passed the House on an 89–0 vote and now moves to the Senate, where it will be sponsored by Sen. Linda Rogers.

Your bill track for the 2026 legislative session can be found here. This is a live bill track and will be updated when we add bills, hearings are scheduled, votes are taken, etc.

IMPORTANT SESSION DATES:

• February 19: Committee Report Deadline (Second Half)
• February 23: 2nd Reading Deadline (Second Half)
• February 24: 3rd Reading Deadline (Second Half)
• February 25 through 27: Conference Committees
• February 27: Anticipated Sine Die

IMPORTANT LINKS

House Committee Assignments

Senate Committee Assignments

House Calendar

Senate Calendar

Please review your live Bill Tracking Report

Please feel free to distribute this email or contact us and we can add you to the distribution list. Don’t forget to contact us with any questions or concerns.

All the best,

Caryl Auslander

causlander@torchbearerIN.com

Jordan Rose

jrose@torchbearerIN.com

Madison West

mwest@torchbearerIN.com

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