By Caryl Auslander ● February 25, 2026

• Education Gains Drive Child Well-Being Improvements
• A Defense Production Hub Comes to Indiana
• Chicago Bears Calls Indiana Deal ‘Step Forward’ for Building New Stadium in Hammond
• So Long, Tenderloin Tribute! Plus Other Bills on the Legislative Scrap Heap
• Supreme Court Strikes Down Trump’s Sweeping Tariffs, Upending Central Plank of Economic Agenda
• Trump Attacks Supreme Court Justices After He is Handed a Major Tariff Loss
• Governors Say Trump Told Them He Won’t Force Immigration Enforcement Surges on States
• Business Finds a Friend in SCOTUS Again
• General Statehouse Update
• Hendricks County Chambers Update
• Action Items
• Important Dates

Education Gains Drive Child

Well-Being Improvements

Indiana's education gains are improving well-being for the state's 1.6 million kids, according to a new report from the Annie E. Casey Foundation.

Driving the news: The annual Kids Count Data Book, released Monday, ranks children's quality of life in four categories: economic well-being, education, health, and family and community.

• Indiana's 25th-place child well-being ranking is two spots higher than in the previous year's report.

By the numbers: Indiana ranked 11th in education outcomes, 11th in economic well-being, 30th in health, and 31st in family and community.

• Youth mental health indicators show improvement, with fewer young people reporting persistent sadness, but access to care remains a challenge.

Zoom in: Indiana jumped six spots in education this year, thanks to meaningful gains in reading and statewide standardized testing.

• IREAD-3 proficiency rose to 87.3%, up from 82.5% in 2024, matching the highest pass rate since the pandemic.

• Indiana's graduation rate increased for the third consecutive year, to nearly 92%.

Yes, but: Fewer students are going straight to college.

• The state previously set a goal to increase the share of adults with higher education to 60% by last year but was only at 53% by the end of 2024.

What they're saying: "The latest Kids Count data show that Indiana is building real momentum for our children," Tami Silverman, president and CEO of the Indiana Youth Institute, said in a news release.

• "The data tells us this is not a moment to slow down," Silverman added. "When we invest in the social infrastructure around youth, we turn today's progress into long‑term success.” (Axios)

A Defense Production Hub

Comes to Indiana

The American Center for Manufacturing and Innovation will break ground Thursday on a 1,100-acre defense-tech development and manufacturing hub in Indiana.

Why it matters: The venture is backed by a $75 million Defense Department munitions campus investment. It also neighbors Naval Surface Warfare Center-Crane Division, one of the largest naval installations in the world.

The latest: Defense officials and members of Congress — Republican Rep. Mark Messmer and Sens. Jim Banks and Todd Young, all of the Hoosier State — are expected to attend the shovel-turning.

• "Indiana is a high-capacity manufacturing state, historically. We've got the workforce and defense partners," Messmer told Axios.

• "As we work on this year's [National Defense Authorization Act], we're going to continue to look at building out a more robust supply chain and how we can most effectively do that."

State of play: This first National Security Industrial Hub is meant to springboard emerging technologies, bulk up domestic resources and foster national security collaboration, including with academia, according to ACMI Group chief executive John Burer.

• "As we launch this, it's a template for rebuilding the defense industrial base, the manufacturing capability," he told Axios.

Zoom in: Prometheus Energetics, a Kratos and Rafael Advanced Defense Systems joint venture, will establish its headquarters and main solid-rocket motor facilities on 600 acres of the property.

• "There is a significant demand in the marketplace for solid-rocket motors and energetics," Daniel Merenda, the COO, told Axios. "The inventory has been depleted over the last several years, given what's happened on the national stage."

• Merenda expects a prototype factory to be "turned on" this year. The first proper production line could be up and running toward the end of 2028. Long-term, four full production lines are envisioned, "approaching tens of thousands of rockets a year."

By the numbers: The project is advertised as creating thousands of jobs and catalyzing $600 million in private spending.

What's next: Burer teased two other groundbreakings that could happen as soon as this summer.

Go deeper: Army kickstarts plans for huge artillery ammo factory in Iowa (Axios)

Chicago Bears Calls Indiana Deal ‘Step Forward’ for Building New Stadium in Hammond

The Chicago Bears are eyeing a move to Hammond, Indiana, but significant steps remain before the plan becomes a reality.

Why it matters: This potential relocation could transform northwest Indiana’s economy.

• The Bears‘ $2 billion investment would create a world-class stadium and drive local development.

• Indiana aims to fund infrastructure through new taxes and bonds, highlighting the state’s commitment to the project.

Driving the news: Indiana legislative leaders unveiled a plan to finance the stadium with new county taxes.

• House Speaker Todd Huston announced the proposal amidst ongoing negotiations.

• The Bears’ approval hinges on the passage of Indiana’s Senate Bill 27.

The bottom line: Indiana’s offer positions it as a strong contender for the Bears‘ new home, promising economic growth and a second NFL team for the state.

• Hammond Mayor Tom McDermott emphasizes the project’s transformative potential, asserting Indiana’s offer as the best option for the Bears.

• A decision remains pending as site assessments and legislative actions continue. (Indiana Capital Chronicle)

So Long, Tenderloin Tribute! Plus Other Bills on the Legislative Scrap Heap

Several bills in Indiana’s legislature failed to advance as they missed a key committee deadline, but some may still resurface through last-minute legislative deals.

Why it matters: The stalled bills include significant proposals on gender definitions, abortion restrictions, and state symbols, reflecting ongoing political debates in the state.

• Senate Bill 21, which aimed to declare the breaded tenderloin as Indiana’s state sandwich, is among those that didn’t progress.

• More contentious were Senate Bills 182 and 236, which faced Democratic opposition and were not heard by the House committees.

Details:

• Senate Bill 182 sought to define gender terms and impose related policies, but it was not scheduled for a hearing in the House.

• Senate Bill 236 aimed to regulate abortion pills, allowing citizens to sue neighbors, but also didn’t get a hearing.

• A controversial utility siting bill and a measure scrutinizing ultra-processed foods in schools also missed the cutoff.

What’s next: While the bills are currently stalled, they could reappear in a conference committee report as legislators continue negotiations.

• The outcome will depend heavily on both legislative priorities and public response to these issues. (Indiana Capital Chronicle)

Supreme Court Strikes Down Trump’s Sweeping Tariffs, Upending Central Plank of Economic Agenda

The Supreme Court struck down President Donald Trump’s extensive global tariffs, marking a significant defeat for his economic agenda.

Why it matters: This decision reaffirms Congress’s exclusive power to levy taxes, impacting Trump’s strategy to use emergency powers for imposing tariffs.

• The ruling emphasizes that the Constitution delegates taxing authority solely to Congress, a point underscored in Chief Justice John Roberts‘ opinion.

By the numbers: The economic impact of Trump’s tariffs was estimated at $3 trillion over the next decade.

• The Treasury collected over $133 billion from these tariffs, according to federal data.

What’s next: While the ruling limits Trump’s tariff actions, it doesn’t eliminate all his powers under other laws, though with more constraints.

• Companies like Costco are already seeking refunds through the courts. (IBJ)

Trump Attacks Supreme

Court Justices After He is

Handed a Major Tariff Loss

President Donald Trump admonished Supreme Court justices after they struck down his sweeping tariffs, accusing them of being influenced by foreign interests.

Why it matters: Trump’s response highlights his continued reliance on tariffs as a key economic strategy, even as legal challenges mount.

• The ruling limits Trump’s ability to use the International Emergency Economic Powers Act to implement tariffs without congressional approval.

The stakes: Trump announced a new 10% global tariff, disregarding calls for congressional oversight.

• This move further emphasizes his commitment to tariffs despite opposition and legal setbacks.

What they’re saying: Trump labeled the justices a “disgrace to our nation” and expressed disappointment in those he appointed, like Barrett and Gorsuch.

• He suggested foreign influence and vowed to maintain existing tariffs under new statutes.

The bottom line: Trump’s tariff strategy remains central to his political agenda, impacting both domestic industries and international trade relations. (Politico)

Governors Say Trump Told Them

He Won’t Force Immigration Enforcement Surges on States

President Donald Trump assured governors he plans no surge of federal immigration operations in states where they’re not wanted.

Why it matters: This commitment comes amid concerns over the impact of federal enforcement on local communities, emphasizing state autonomy.

• New York Gov. Kathy Hochul and Maryland Gov. Wes Moore highlighted the importance of state consent in federal operations.

• Louisiana Gov. Jeff Landry noted successful integration of local, state, and federal efforts in his state.

The big picture: The meeting occurred at the National Governors Association winter conference, where governors discussed multiple issues including immigration enforcement and infrastructure.

• Trump’s statement was seen as a positive outcome by some governors, indicating a willingness to prioritize state interests.

What’s next: Trump will host a black-tie dinner for some governors, although controversy arose over the exclusion of certain Democrats.

• The meeting also saw discussions on energy prices and infrastructure projects like the Gateway Tunnel.

Worth noting: The Supreme Court’s ruling on tariffs overshadowed the meeting, with Trump vowing to maintain tariffs under different authorities. (Indiana Capital Chronicle)

Business Finds a Friend in

SCOTUS Again

For close observers of the Supreme Court, the 6-3 ruling overturning President Trump's signature tariff policy Friday wasn't such a surprise.

• Under Chief Justice John Roberts, the conservative court has been overwhelmingly pro-business, research has shown.

• And, the U.S. shrimp industry notwithstanding, most businesses hated the tariffs. They were a frequent target of the Wall Street Journal editorial page. The Chamber of Commerce filed a brief with the court siding against the White House.

Flashback: A paper released in 2022 found that under Roberts, this Supreme Court is the most pro-business court "in a century."

• It has sided with business in cases involving a nonbusiness 63% on average in the years examined. Historically, that number had been 41%.

• The pro-business slant isn't just a matter of more Republican-appointed justices. Judges appointed by Democrats lean that way, too.

Zoom in: The paper's coauthor, Lee Epstein, a professor at Washington University in St. Louis, told Axios over the weekend she thinks the ruling aligns with their findings.

Where it stands: Just how attuned to markets is this court? Last week, the Supreme Court announced that litigants will soon be required to include company stock tickers in court documents.

• The aim is to help the justices figure out if they have a conflict of interest in the case.

The latest: Trump's loss isn't the end of his tariff regime. Over the weekend the president said he would increase global tariffs to 15%.

Follow the money: The ruling, meanwhile, said nothing about refunds — and companies are scrambling to figure out what to do, as the Wall Street Journal reported Saturday.

• U.S. trading partners are confused: "Nobody can make sense of it anymore — only unanswered questions and growing uncertainty for the EU and other US trading partners," Bernd Lange, the chief trade lawmaker in the European Parliament, posted on X yesterday.

The bottom line: That is not the closure the business community craved.

• "In short, trade uncertainty is not fading; it is merely shifting form," economist Bob Schwartz of Oxford Economics writes.

What to watch: The tariff decision was the first time in Trump's second term that the court definitively pushed back on one of the president's policies.

• The next time could be another business-aligned case: The court is expected to rule shortly on the president's attempt to fire Fed governor Lisa Cook. (Axios)

General Statehouse Update

We have entered the last week of the legislative session for 2026. Though the fate of many bills is still undecided, the legislature is marching out like a lion in its final days, gathered in the chambers of the Indiana Statehouse. Deadline days are here again, and some controversial bills we pointed you to last week, including the abortion drugs sent via mail and the anti-trans bathroom bill, met their end without receiving a hearing. Read more from the IndyStar here.

Perhaps one of the most intriguing moments this week was HB 1003’s hearing in the first meeting of the Senate Rules Committee, which is chaired by Senate President Pro Tem Rod Bray (R-Martinsville). The rare meeting of the Rules Committee affords Statehouse observers a unique peek behind the scenes, where we sometimes learn the reasoning behind legislative strategy. As a reminder, HB 1003 is a House Republican priority bill aimed at reducing the number of boards and commissions that discuss a variety of topics important to Indiana. When asked why the bill was placed in the Rules Committee, which typically signifies trouble for a bill, Chairman Bray simply stated it was his decision where bills go, and that bills placed in the Rules Committee are not required to be recommitted to the Tax & Fiscal Committee—a key procedural note that prevents the bill’s death since the deadline for bills to move out of committees was this past Thursday. The bill passed out of committee 11-0 and while the floor calendar for Monday has not yet been released, we expect HB 1003 to be listed on the Second Reading calendar.

Also making it out of committee in the nick of time was SB 285, which bans homeless Hoosiers from sleeping outdoors, which faces significant opposition from advocates working to end homelessness. While efforts to move the bill have failed in previous years, Senator Cindy Carrasco (R-Indianapolis) has moved the measure this year, which sets Class C misdemeanors for individuals living outside who fail to move more than 300 yards within a 48-hour period. The bill, which was amended to include a provision allowing law enforcement to address individuals suffering a “grave disability,” has moved forward despite pushback from law enforcement across the state and concern from mental health advocates that the bill conflates homelessness with disability. The bill will be further discussed on the House floor on Monday.

Also alive is SB 270, authored by Sen. Rick Niemeyer (R-Lowell), this year’s township consolidation bill. Elements of HB 1315 were incorporated into SB 270 after the Ways and Means Committee made additional changes this week. This is a significant effort on an issue that has been hotly debated for decades and the Indiana Capital Chronicle ran down the issues competing in SB 270 here.

Our report this week would not be complete without mention of the epic shuffle that occurred on Thursday with the early morning Ways and Means Hearing of a handsome bipartisan package designed to incentivize the Chicago Bears to move to Hammond, Indiana. SB 27 creates the Northwest Indiana Stadium Authority and tees up a battle royale between Springfield, Illinois and Indianapolis, and in the process teed up a bipartisan alliance not seen since HIP 2.0. We have not seen excitement like this at the Indiana Statehouse since 2007’s Colts/Bears matchup during the Super Bowl that year.

In other exciting news, the Conference Committee Grid is alive—which truly means the end of session is near. Monday is Second Reading deadline and Tuesday marks the Third Reading deadline. Then we have a flurry of three days of conference committees (although some have already posted for early next week) before we adjourn, sine die on Friday, February 27th.



On a sad note, we would like to convey our condolences to the Beech Grove Police Department and Statehouse colleague Joey Fox—both of whom lost an important family member this week with the tragic killing of Officer Brian Elliott. We join the entire Indianapolis and Central Indiana communities in grieving the profound loss. May Officer Elliott’s memory be a blessing.

Please feel free to reach out to your TPA lobbyists at any time this week as we near the finish line. It is going to be a busy push to the end, but your team will be your eyes and ears at the statehouse as we cross the finish line.

Hendricks County Chambers Update

We’ve made it to the last week of session. And it is going to be a crazy week ahead. Monday will be the second reading deadline in both the House and Senate and Tuesday is the third reading deadline. From there we have a whirlwind three days of conference committees (although some have already been scheduled for early next week). As a reminder, during a typical session we usually have two WEEKS of conference committees. We are only required to have one-hour notice for a conference committee, so your TPA team will be at the statehouse 24-7 next week watching and waiting for these to be scheduled (send snacks). We are anticipating session to adjourn on Friday, February 27th. As such, your end of session report will not be sent out until later the following week. Your TPA professionals will be available to you for whatever questions you may have - so please don’t hesitate to reach out.

Topic: Various Tax Matters

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

Update:

• SB 243 is an omnibus tax package updating Indiana tax law, including federal conformity changes (updating the Internal Revenue Code reference date to January 1, 2026), gambling withholding provisions, adoption tax credit clarification, expanded sales tax enforcement (including vehicle, aircraft, cargo trailer, and watercraft registration presumptions), electronic delivery of DOR documents, research expense conformity updates, and extension of the Revenue Agent Report (RAR) deadline to one year.

• House Ways & Means Amendment #13 (Committee Amendment) – Adopted (13–9): Establishes the penny phaseout framework for cash transactions involving state and local taxes, including rounding provisions for amounts with certain second-decimal digits and implementation mechanics for state and local remittances.

• Floor Amendment #5 (Rep. Thompson) – Prevailed: Updates Indiana’s definition of “Internal Revenue Code” from January 1, 2023, to January 1, 2026, ensuring conformity with recent federal tax changes and related regulatory provisions.

• Floor Amendment #7 (Rep. Thompson) – Prevailed: Modifies the penny phaseout rounding language to provide flexibility by allowing rounding down, rounding up, or rounding to the nearest five cents for eligible cash transactions, and changes certain mandatory language to permissive (“may”) language.

Action Items:

• The bill is expected to receive its final vote in the House by the statutory deadline next week before heading back to the Senate for a concurrence or dissent motion.

Topic: Townships

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.”

• It was heard in House Local Government again on Tuesday, where an amendment was added to combine the approach in the original SB 270 with elements from Rep. Shonkwiler’s HB 1315.

• The HB 1315 process will be used for designated townships that are 80% coterminous with a municipality and have at least 51% of the population residing in the municipality’s boundaries.

• Rep. Niemeyer also added that townships can be proactive about merging before any statute forces them to do so, and expressed hope that they would.

• The bill passed 11-2, and was recommitted to House Ways and Means so that its financial impact could be considered.

• Amendment 13 was adopted in Ways and Means to address a specific instance in Northern Indiana where a township has been unable to fill an assessor position. The amendment sets up a process to allow the county to take over the assessing duties. A sunset provision is in place to ensure the language’s limited applicability.

• The bill passed out of Ways and Means 18-6 on Wednesday.

• It will be eligible for House second reading on Monday, which is also the second reading deadline.

Action Items:

• The bill will need to be engrossed on Monday and pass on third reading on Tuesday to keep moving forward, which we anticipate happening.

Topic: Child Care Assistance

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

Update:

• HB 1177 expands Indiana’s employer childcare expenditure tax credit by increasing the maximum size of an eligible employer from 100 employees to 500 employees. It broadens what counts as a “qualified childcare expenditure,” including operating costs for employer-supported childcare, contracts with childcare providers (including through an intermediate entity), and certain employee support costs like training, scholarships, and increased compensation tied to training. Finally, it allows TIF (tax increment) revenue to be used to support the construction, expansion, or ongoing operation of childcare facilities.

• The bill received a hearing in the Senate Tax and Fiscal Policy Committee on Tuesday. All testimony was in support of the bill. No additional amendments were added.

• The Indiana Chamber of Commerce, United Way of Central Indiana, Indiana Manufacturers Association, National Federation of Independent Business, and Indiana Family and Social Services Administration, and other local/regional chambers continue to advocate for this language.

Action Items:

• The bill was heard this week in the Senate Tax & Fiscal Policy Committee and passed out 12–0, unamended. It was ordered engrossed on Second Reading without amendments and now awaits its final vote in the Senate. Should it pass the Senate, it will go straight to the Governor’s desk for signature.

Topic: Childcare

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

Update:

• SB 4 remains a broad omnibus fiscal bill addressing executive order fiscal review by LSA, tax credit oversight and Budget Committee review, updates to community mental health center (CMHC) funding and reporting requirements, property tax provisions, economic development tools, and various local government fiscal matters.

• The Child Care and Development Fund (CCDF) provision remains unchanged. The bill continues to allow certain appropriations to be used to support the CCDF voucher program, which helps reduce childcare costs for working families and supports workforce participation by addressing childcare access and waitlist pressures.

• Amendment #10 (Rep. Greene) – Adopted by Consent. Requires the Office of the Secretary of FSSA to seek federal approval to increase asset limits for home and community-based services Medicaid waivers to $5,000 for individuals and $10,000 for married couples, modernizing outdated eligibility thresholds.

• Amendment #38 (Rep. Snow) – Adopted by consent. Adds multiple fiscal and policy provisions, including economic development and tax credit oversight elements incorporated from SB 281—such as adjustments to certified technology park designations and economic development tax credit allocations (including Small Town Opportunity–related funding)—along with property tax changes affecting certain nonprofit hospital systems, updates to public library budget review thresholds, local government provisions (including Delaware County–specific and disannexation language), SNAP technology safeguards, and establishment of a statutory framework for Indiana’s Unmanned Aircraft Systems Test Site.

• Following adoption of the amendments, SB 4 passed committee (24–0).

Action Items:

• SB 4 now awaits further consideration on Second Reading in the House, where additional amendments remain possible.

Topic: Priority Bills

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

Update:

• HB 1001 makes broad changes to local zoning and housing policy, including expanding permitted residential uses, limiting certain local development regulations, adjusting impact fee and permitting timelines, and adding new housing data reporting requirements for local units.

• The bill was heard in Senate Judiciary committee this week and advanced by a narrow margin (6-5), underscoring significant concerns from local governments and planning organizations regarding local control, infrastructure strain, and one-size-fits-all zoning mandates.

• Amendment #5 – Adopted (10–1). Increases allowable construction cost thresholds for certain housing authority projects and authorizes negotiated bond sales below par value, providing additional financing flexibility.

• Amendment #8 – Adopted (9–1). Makes most previously mandatory provisions opt-out, narrows permitted use areas, establishes guidelines for mixed-zoned developments, directs IDEM to update the Storm Water Quality Manual, extends residential TIF timelines, and creates a study committee to further evaluate subdivision and housing policy issues.

• Committee testimony reflected strong opposition from mayors, counties, cities, and towns, while housing advocates and builders supported the bill as a necessary step to address Indiana’s housing shortage.

Action Items:

• With committee action complete, HB 1001 now moves to the Second Reading calendar for consideration by the full Senate, where further amendments and debate are expected given the narrow committee vote.

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.

• HB 1003 passed the House on third reading by a vote of 67–29 and is being sponsored in the Senate by Sen. Maxwell.

• The bill was assigned to the Senate Committee on Rules and Legislative Procedure. Typically, this is where bills go to die. The bill was heard Wednesday in Senate Rules Committee where a single large amendment (amendment #19) was offered by President Pro Tempore, Rod Bray (R-Martinsville).

• The amendment shortens the bill from over 400 pages to 332 pages and eliminates 32 boards and commissions but reinstates the Governor’s Workforce Cabinet which was eliminated in a previous legislative session.

• Amendment 20 was a technical fix, which was adopted by consent.

Action Items:

• The bill passed out of committee 11-0 and moves to the full Senate for second reading amendments.

Topic: Work Based Learning Liability

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

Update:

• HB 1098 (Rep. Commons) establishes a clear framework for liability and workers’ compensation coverage in work-based learning programs, giving employers greater certainty while maintaining protections for participating students.

• The bill defines covered work-based learning programs (including apprenticeships and approved work-based learning courses) and excludes virtual-only experiences and one-time career awareness activities.

• It requires a written agreement between employers and intermediaries or schools that assigns responsibility for workers’ compensation and employer liability coverage, including compliance through a third-party employer of record.

• HB 1098 updates workers’ compensation statutes to provide appropriate benefits to participating students while limiting additional liability exposure for employers through exclusive-remedy protections.

Action Items:

• HB 1098 passed the Senate on final vote, 44–1, and now heads back to the House for a concurrence or dissent motion.

Topic: Homelessness

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

Update:

• SB 285 addresses chronic homelessness by prohibiting camping, sleeping, or long-term sheltering on state or local government property unless expressly authorized, and establishes a warning-first approach before a Class C misdemeanor may be charged. Individuals must receive a warning and 48 hours to relocate before penalties apply.

• The bill also prohibits local governments from adopting or enforcing policies that discourage enforcement of public camping ordinances, requires annual reporting of citations and arrests, and allows diversion options and referrals to services in lieu of prosecution.

• Amendment #9 (Rep. Meltzer) – Adopted by Consent. The amendment modifies the emergency detention provisions by refining the definition of “gravely disabled,” requires officers to proceed with emergency detention rather than arrest when applicable, and removes the ability to bring certain civil actions against municipalities.

Action Items:

• SB 285 passed out of committee amended 8-5 and now heads to the House floor for further consideration. We expect a number of amendments to be filed.

Topic: Tort Reform

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

Update:

• HB 1417 limits civil public nuisance actions by defining a public nuisance as an ongoing, unlawful condition that interferes with an established public right, and by narrowing available remedies primarily to injunctive relief and abatement-related damages.

• Amendment #9 – Adopted by Consent. Clarifies that the bill’s public nuisance limitations apply only to actions brought by the state, and do not restrict private causes of action, ensuring individuals retain access to the courts.

• Amendment #10 – Adopted (10–1). Removes the qualified settlement offer provisions from the bill, eliminating changes related to attorney’s fees, costs, and expense awards tied to settlement offers.

• Following adoption of the amendments, HB 1417 passed out of committee amended (9–4) after debate over balancing litigation certainty for businesses with preserving enforcement tools for public health and safety.

Action Items:

• HB 1417 now heads to the Senate floor for further consideration where we anticipate further amendments.

Topic: Immigration

Bill #/Title (linked): SB 76 (Immigration Matters)

Update:

• SB 76 strengthens Indiana’s enforcement of immigration-related laws by prohibiting state and local governments, law enforcement agencies, and public institutions from limiting or restricting cooperation with federal immigration authorities, and by providing the Attorney General expanded enforcement authority when violations occur.

• The bill establishes clear procedures and protections related to immigration detainer requests, including notice requirements to courts and individuals, mandatory compliance by custodial authorities, and immunity for governmental entities and employees acting in compliance with federal and state law.

• SB 76 also adds new enforcement tools related to employment of unauthorized aliens, reporting and oversight requirements for state facilities and agencies, and updates nuisance and enforcement statutes to support public safety and compliance, while directing ongoing reporting to legislative and budget committees.

Action Items:

• A motion to concur was filed by the author, and the bill now awaits a vote on whether to accept the House changes.

Topic: Income tax credits

Bill #/Title (linked): SB 281 (Income tax credits)

Update:

• SB 281 (Sen. Goode) was amended and unanimously advanced (22–0) by the House Ways and Means Committee, sharpening the bill’s focus on regional economic development by directing the Indiana Economic Development Corporation (IEDC) to strategically deploy redevelopment tax credits for projects with demonstrable regional impact.

• Amendment #10 (Rep. Lopez) was adopted by consent and requires the IEDC to commit $35 million annually in redevelopment tax credits across development authorities, qualified nonprofits, and local economic development organizations, with added reporting to the State Budget Committee to ensure transparency and accountability. The amendment also creates the Small Town Opportunity Initiative, reserving $15 million annually to support historic preservation and downtown redevelopment projects in smaller communities, with no repayment obligation on transferred credits.

• The amendment package further strengthens Indiana’s innovation ecosystem by refining the Venture Capital Investment Tax Credit, enhancing flexibility for certified technology parks, and advancing implementation of the state’s newly designated Unmanned Aircraft Systems (UAS) Test Site Program, reinforcing Indiana’s competitiveness in emerging technologies.

• During the committee this week, several fiscal oversight and accountability provisions originally included in SB 281 were removed and relocated to SB 4, significantly narrowing SB 281’s focus to regional economic development and targeted redevelopment incentives, while allowing broader budgetary and tax-administration guardrails to move through the omnibus fiscal vehicle.

Action Items:

• SB 281 now moves forward to the House floor to be heard on Second Reading.

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 (DLGF) omnibus bill, making broad updates to Indiana’s property tax system and local fiscal policies, including administrative cleanup, modernization, and technical fixes across numerous chapters of code governing local income taxes, property taxes, TIFs, and local government fiscal administration.

• The bill was heard this week in the Senate Tax & Fiscal Policy Committee, where discussion again focused heavily on rental property authority, local control, housing supply impacts, and private property rights. Following adoption of a comprehensive amendment, the bill passed out of committee unanimously, 13–0.

• Committee Amendment #91 (Sen. Baldwin) – Adopted (13–0). This amendment made wide-ranging changes, including clarifying local income tax (LIT) adoption and administration, adjusting property tax and TIF provisions, modifying rental property and HOA governance rules, updating municipal advisor registration and enforcement authority, and incorporating Hamilton County–specific innkeeper’s tax provisions drawn from SB 242, including creation and administration of a tourism capital fund and distribution of excess innkeeper’s tax revenue to Noblesville, Carmel, Fishers, and Westfield, along with numerous technical and policy refinements across local fiscal law.

• Floor Amendment #7 (Sen. Buchanan) – Prevailed. Requires that certain local income tax rates expire annually after December 31, 2030, unless affirmatively readopted by ordinance, reinforcing ongoing local legislative oversight of LIT rates even when no rate change is proposed.

• Floor Amendment #16 (Sen. Baldwin) – Prevailed. Makes extensive conforming and policy changes, including adjusting effective dates, refining municipal advisor qualification timelines and contract expirations, expanding DLGF authority over industrial facility assessments in qualifying counties, establishing new procedural safeguards and appeal requirements, and creating a dedicated fund to support assessment appeals and administration.

Action Items:

• The bill is expected to receive its final vote in the Senate by the statutory deadline next week before heading back to the House for concurrence or further action. We are hearing there will be a concurrence.

• Given the breadth of the bill, numerous technical and policy issues have been identified that will need cleanup, and we have been told additional fixes may surface in HB 1406. We will continue to monitor closely for those developments and flag any material changes.

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 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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