By Caryl Auslander ● May 12, 2026
  • Braun Adds Indiana Gas Tax Suspension on Top of Sales Tax Break
  • Unemployment Stays Flat in Delayed March Report
  • State Launches ‘Keep IN’ Initiative to Support Small Business Growth, Retention
  • Federal Court Rules Against New Global Tariffs Trump Imposed After Loss at Supreme Court
  • Braun’s Office Announces Expansion of Indiana Health Prices Platform
  • Trump Backs Federal Gas Tax Suspension
  • Cost of Raising a Child in Indiana Up Nearly 12%
  • Attorney General Todd Rokita Launches IN Fuel Watch
  • Indiana Launches Artificial Intelligence Economic Development Initiative
  • FSSA Hiring 400 Employees to Monitor Medicaid Eligibility Ahead of Work Requirements
  • Fed Likely to Leave Rates Unchanged At What Might Be Powell’s Last Meeting
  • Inflation Spikes to 3.5 Percent in March as Iran War Drove Prices Higher
  • USDA to Move SNAP Administrative Office and Staff to Indianapolis
  • U.S. House Passes ‘Skinny’ Farm Bill That Keeps Big GOP Cuts to Food Assistance
  • Important Dates

Braun Adds Indiana Gas Tax Suspension on Top of Sales Tax Break


Gov. Mike Braun has extended the suspension of both the sales tax and the state gas tax on gasoline for another 30 days.


Why it matters: Hoosier motorists will save 59.3 cents per gallon for the next month, offering significant financial relief.


  • The combined tax suspensions are expected to cost state coffers $104 million and local units $52 million.


Driving the news: The current 30-day sales tax suspension was set to end on May 8.


  • Braun’s initial suspension of the 7% sales tax on gasoline had already cost $50 million.


hat’s next: Braun announced plans to increase the mileage reimbursement rate for state employees using personal vehicles for work-related travel. Details are forthcoming from the governor’s office. (Inside Indiana Business)


Unemployment Stays Flat in Delayed March Report


Indiana’s unemployment rate remained unchanged at 3.3% in March, as announced by the Indiana Department of Workforce Development (DWD).


Why it matters: The state continues to outperform the national unemployment rate, which is at 4.3%.


  • Indiana added 5,400 private sector jobs, boosting employment in manufacturing, leisure and hospitality, trade, transportation and utilities, financial activities, and private educational and health services.


By the numbers: Indiana’s labor force participation rate slightly decreased to 63.3%, still higher than the national rate of 61.9%.


  • The labor force included 3,493,123 individuals either employed or seeking employment.


What’s next: The state had 98,050 open job postings as of March 29.


  • 20,972 continued unemployment insurance claims were filed as of April 4.


  • The April unemployment report is anticipated later this month, following delays due to the previous federal government shutdown. (Inside Indiana Business)


State Launches ‘Keep IN’ Initiative to Support Small Business Growth, Retention


Indiana Gov. Mike Braun and the Indiana Office of Entrepreneurship and Innovation have launched Keep IN, an initiative to support small business owners planning for the future.


Why it matters: The initiative aims to reduce preventable business closures and support smoother ownership transitions. This is critical as more than half of Indiana’s small businesses are owned by individuals aged 55 or older, putting up to 906,000 jobs at risk over the next decade.


  • The program includes a pilot targeting businesses in the southern and northwest regions of the state.


The big picture: Research by the Indiana Business Research Center highlights both challenges and opportunities in small business succession across the state.


  • In 88 out of 92 counties, at least half of small business revenue is linked to owners over 55.


What’s next: The state will partner with the Exit Planning Institute and SMB.co to provide resources such as business valuations and transition readiness assessments.

  • Workshops on succession planning will be hosted in collaboration with the Indiana Chamber of Commerce. (IBJ)


Federal Court Rules Against New Global Tariffs Trump Imposed After Loss at Supreme Court


A federal court ruled against the 10% global tariffs that President Trump imposed, marking another setback for the administration.


Why it matters: The decision blocks tariff collections from specific plaintiffs and questions the extent of presidential tariff power.


  • The ruling may encourage other businesses to challenge the tariffs and seek refunds.


  • The legal battle could escalate to the Supreme Court if the administration appeals.


The big picture: The tariffs were initially imposed after a Supreme Court decision struck down broader tariffs last year.


  • The Trump administration is investigating new tariffs against several trading partners.


What’s next: The administration is conducting investigations that could lead to additional tariffs, affecting international trade dynamics. (IBJ)


Braun’s Office Announces Expansion of Indiana Health Prices Platform


The office of Indiana Gov. Mike Braun announced the expansion of the Indiana Health Prices platform, aiming to consolidate healthcare cost information.


Why it matters: This platform allows Hoosiers to make informed comparisons, potentially reducing healthcare expenses.

  • The platform integrates hospital cash prices, provider-contributed data, and prescription resources.


  • It serves as a one-stop resource for health cost data, accessible to residents, researchers, and policymakers.


What’s new: An Indiana Health Prices Chatbot will offer 24/7 interactive responses to simplify searches and provide unified access across state websites.


  • New features include cash price transparency, expanded provider data, and a prescription resources tab.


Governor Braun’s perspective: “Transparency and affordability drive competition and lower healthcare costs,” Braun stated.


  • The integration aims to empower users with confidence in comparing healthcare options.

Go deeper: visit the platform here. (Fox 59)


Trump Backs Federal

Gas Tax Suspension


President Trump endorsed suspension of the federal gasoline tax in an interview with CBS News Monday.


Why it matters: It marks a reversal for the White House as Republicans face political blowback over high gasoline prices.

  • Last week the White House told Axios that a suspension was not "currently under consideration."


Driving the news: "[W]e're going to take off the gas tax for a period of time, and when gas goes down, we'll let it phase back in," he told CBS.


Reality check: Suspending the 18.4 cent-per-gallon tax would require Congress.


  • Sen. Josh Hawley (R-Mo.) posted on X that he'll introduce legislation Monday to suspend the tax.



  • The White House did not say whether Trump would seek action from Capitol Hill.


Between the lines: Republican leaders aren't racing to embrace the idea.

  • "I've not in the past obviously been a fan of that idea. But you know I've got some colleagues out there who think it's a good idea and so we'll hear them out," Senate Majority Leader John Thune (R-S.D.) told reporters.


  • He noted that the loss of the gas tax revenue could hurt the highway trust fund, and said "the best thing can happen for gas prices is for the [Strait of Hormuz] to get opened up again."


Catch up quick: Gasoline prices have soared since the start of the war with Iran.


  • The U.S. average for regular gasoline is currently $4.52 per gallon, per AAA, up from just under $3 per gallon before the conflict.


What we're watching: The potential for action in Congress, which thus far has not taken up the topic.


  • Democratic Sens. Mark Kelly (Ariz.) and Richard Blumenthal (Conn.) have sponsored a bill to suspend the tax until Oct. 1, and Democratic Rep. Chris Pappas (N.H.) has a companion measure.


Go deeper: What a gas tax holiday would actually do (Axios)


Cost of Raising a Child in

Indiana Up Nearly 12%


Indiana’s child care costs have increased significantly, with parents spending 23.2% of their income on raising a child.


Why it matters: Families face financial strain as costs rise, impacting economic stability.


  • The annual cost is now $26,576, up 11.7% from 2025, according to Lending Tree.


The big picture: While food costs remain low, day care, rent, and transportation push expenses higher. (WISH TV)

Attorney General Todd Rokita Launches IN Fuel Watch


Indiana Attorney General Todd Rokita launched IN Fuel Watch, a new online portal offering real-time gasoline prices at over 4,600 stations statewide.


Why it matters: The portal empowers Hoosiers with information to make informed decisions at the pump and helps ensure fair pricing during the declared energy emergency.


  • Features: Users can search, filter, and sort stations by price, city, or name, with live metrics showing the average price and changes since the tax suspension began.


  • Color-coded indicators: Green for significant price drops, yellow for moderate changes, and red for increases.


What they’re saying: “Hoosiers deserve clear, accessible information about gas prices in their communities,” said Attorney General Rokita, highlighting the importance of transparency and fairness.


The bottom line: IN Fuel Watch provides critical data for consumers and aids the Attorney General’s Consumer Protection Division in monitoring the market for any price-gouging during this time of energy emergency.


Hoosiers can visit IN Fuel Watch to check current prices. Reports of price gouging can be filed at indianaconsumer.com. (IN.gov)


Indiana Launches Artificial Intelligence Economic Development Initiative


Gov. Mike Braun announced the launch of IN AI, a statewide initiative aimed at boosting businesses through AI.


Why it matters: The initiative targets job creation and wage growth by integrating human-centered AI in various businesses.


  • It aims to position Indiana as the most AI-ready state, enhancing competitiveness in a changing economy.


Driving the news: IN AI will be managed by CICP and is set to engage over 1 million Hoosiers, aiming to drive measurable economic impact through employer-led AI adoption.


What’s next: The program will work directly with employers to accelerate AI adoption, ensuring tools and talent are available to businesses from Main Street to large organizations. (IBJ)


FSSA Hiring 400 Employees to Monitor Medicaid Eligibility Ahead

of Work Requirements


The state agency overseeing Medicaid is hiring 400 employees to check the eligibility of 560,000 low-income Hoosiers in the Healthy Indiana Plan.


Why it matters: As Indiana complies with new state and federal work requirements, the increase in eligibility checks ensures that Medicaid participants meet the necessary criteria.


  • This change is crucial for maintaining the integrity of the Healthy Indiana Plan and ensuring benefits reach those truly eligible.


The big picture: Federal work requirements for Medicaid expansion kick in on Jan. 1, 2027.


  • Indiana’s state lawmakers initially set a July 1, 2025 start date for work requirements, which was overridden by Congress.


What’s next: Starting in 2026, states will face increased financial responsibility for the Supplemental Nutrition Assistance Program (SNAP).


  • Indiana expects to pay 75% of the SNAP administration costs, amounting to $37 million for the 2027 fiscal year.


The bottom line: While increased checks might not lead to cost savings due to federal cost-sharing, they reinforce the state’s commitment to personal responsibility and program integrity. (Indiana Capital Chronicle)


Fed Likely to Leave Rates Unchanged At What Might Be Powell’s Last Meeting


Wednesday could mark a significant turning point for the Federal Reserve as Chair Jerome Powell might announce whether he will stay on the board after his term ends.


Why it matters: Powell’s decision could influence the Fed’s independence and future policy direction.


  • If Powell remains, he may limit President Trump’s ability to appoint a new governor, potentially intensifying tensions with the administration.


The backdrop: The Senate Banking Committee is set to vote on Kevin Warsh’s nomination to succeed Powell, expected to pass on a party-line vote.


  • Warsh, a past proponent of rate cuts, faces a challenging environment with inflation rising to 3.3% due to the Iran war.


What’s next: The Fed is likely to maintain its rate at 3.6%, balancing inflation control with stable employment.


  • Economists are watching for potential changes in the Fed’s statement that could hint at future rate adjustments.


Between the lines: Powell’s decision to stay could create a unique “two Popes” scenario at the Fed, complicating leadership dynamics and policy consensus. (IBJ)


Inflation Spikes to 3.5 Percent in March as Iran War Drove Prices Higher


The March inflation rate surged to 3.5% as tensions in Iran drove up costs, per the Commerce Department.


Why it matters: The rapid inflation rise, largely due to the war’s impact on food and energy, challenges the Federal Reserve’s 2% target and pressures the U.S. economy.


  • Without food and energy, inflation still rose to 3.2%.


By the numbers: Prices jumped 0.7% in March, up from a 0.4% increase in February.


  • Economists had anticipated this steep rise amid geopolitical tensions.


The bottom line: The Iran conflict’s toll on global supply chains could further strain President Trump and Republicans, already under scrutiny for their economic policies. (The Hill)


USDA to Move SNAP Administrative Office and Staff to Indianapolis


The Trump administration announced that the SNAP office will relocate to Indianapolis as part of a broader effort to decentralize USDA services from Washington, D.C.


Why it matters: This move is intended to enhance customer service and encourage collaboration among USDA employees and partners.


  • The relocation aims to bring government services closer to the communities they serve, potentially improving efficiency and responsiveness.


The big picture: The USDA plans to reorganize its food programs under a new division called the Food and Nutrition Administration.


  • This reorganization includes relocating various program offices to different cities, such as child nutrition programs to Dallas and research programs to Raleigh.


What they’re saying: U.S. Sen. Jim Banks and Sen. Todd Young praised the move, highlighting the benefits of bringing USDA services to Indiana.


  • Sen. Banks called it a “huge win for Indiana,” emphasizing the importance of government proximity to the people.


What’s next: The USDA is committed to ensuring that these relocations do not disrupt program execution or efforts to combat fraud and abuse across its nutrition assistance programs. (Inside Indiana Business)


U.S. House Passes ‘Skinny’ Farm Bill That Keeps Big GOP Cuts to Food Assistance


The U.S. House approved a five-year farm bill on Thursday with a vote of 224-200, aiming to update agriculture and nutrition policy after years of extensions.

Why it matters: The bill would authorize subsidy and nutrition assistance programs through fiscal 2031, impacting major programs like SNAP, which assists 1 in 8 Americans.


  • The Congressional Budget Office estimates the bill would add $162 million in mandatory spending over the next six years.


New authorizations needed: The last farm bill was approved in 2018, with extensions enacted in subsequent years. The bill now moves to the Senate, where a new version is expected soon.


  • House Agriculture Chairman Glenn “GT” Thompson emphasizes the need for updated policies to support rural America.


Local food and foreign aid: The bill introduces a $200 million local food procurement program and shifts foreign food aid oversight to the USDA.


Debate over SNAP cuts: While the bill has bipartisan support, Democrats criticize it for maintaining SNAP cuts from previous legislation, potentially worsening hunger.


  • Rep. Angie Craig highlights the need for provisions that address rising costs and support farmers. (Indiana Capital Chronicle)

IMPORTANT DATES:


Tuesday, May 12 at 1:30pm: Legislative Council, Room 404


Tuesday, May 12 at 4:30pm: State Budget Committee, Room 431



Wednesday, May 13 at 1:00pm: Strategic Energy Growth Task Force, Streaming Only

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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