Governor Braun’s $200M child care boost
Gov. Mike Braun’s administration plans to divert $200 million to offer vouchers for 14,000 low-income children, lifting them off the child care waitlist.
Why it matters: Access to affordable child care empowers parents to pursue better job opportunities and gain new skills.
- This move signifies a long-term commitment to keep child care affordable and provide families with confidence in continued support.
Details: The Child Care and Development Fund, a state-administered federal program, has been closed to new applicants for over a year.
- The $200 million proposal aims to reopen admissions, with a significant boost in state surplus supporting the initiative.
What’s next: With State Budget Committee approval, implementation could begin in late May.
- This timeline allows child care providers to prepare for reopening classrooms and rehiring staff, crucial for the program’s expansion.
The bottom line: This historic investment in child care addresses long-standing issues for families and providers, offering stability and growth potential for Indiana’s workforce. (Indiana Capital Chronicle)
Indiana suspends gas sales tax
Gov. Mike Braun has declared a 30-day suspension on the 7% sales tax for gasoline, effective immediately through May 8.
Why it matters: This measure aims to provide financial relief to Hoosiers amid soaring gas prices and inflation.
- Estimated savings could reach $50 million monthly, benefiting consumers directly at the pump.
- Retailers are urged to pass these savings to customers, with state oversight ensuring compliance.
The big picture: Taxes on fuel in Indiana comprise federal, state excise, and sales taxes.
- Taxes on fuel in Indiana are made up of the federal gas tax of 18.4 cents per gallon, the state excise tax of 36 cents per gallon and the 7% state sales tax.
- The current average gas price is $4.14 per gallon, with 17 cents attributed to sales tax, according to AAA.
Legislative reactions: The gas tax suspension has garnered mixed responses from lawmakers.
- Republicans, facing election pressures, largely support the move.
- Democrats back the suspension but criticize the timing, citing past calls for action during high prices.
What’s next: The executive order will be reviewed in 30 days, with potential extensions based on economic conditions.
- Attorney General Todd Rokita’s office will monitor for price gouging and enforce consumer protections.
Gov. Mike Braun talks to reporters about a suspension of the sales tax on gas on Wednesday, April 8, 2026. (Photo by Mackenzi Klemann/Indiana Capital Chronicle)
State revenues continue to beat projections in March
What’s new: Indiana revenue collections surpassed the most recent estimates for the month of March.
By the numbers: The Indiana State Budget Agency said Friday that General Fund revenues last month totaled $1.6 billion, which was $67.8 million higher than the April 2025 forecast, or 4.3%. March’s collections were also 7.9% higher than the same month in 2025. The agency noted that higher-than-expected collections from individual income taxes (9.7%), sales taxes (2.4%), and cigarette taxes (11.4%) drove March’s performance.
Yes, but: Corporate tax collections, racino wagering collections, and interest revenue collections all fell below estimates for the month.
The bottom line: Year-to-date, General Fund revenues have totaled just over $16 billion, which is $142 million above the April 2025 forecast and 7.2% higher than the same period in the previous fiscal year.
You can connect to the full March 2025 revenue report by clicking here. (Inside Indiana Business)
Governor Braun Announces MGA Chair’s Agenda –Deploying Advanced Nuclear Energy
Breaking: The Midwestern Governors Association (MGA) today announced Indiana Governor Mike Braun as its new Chair, alongside his agenda: “Deploying Advanced Nuclear Energy in the Midwest.” The initiative puts a spotlight on strengthening energy reliability and meeting rising demand across the Midwest region.
What he’s saying: “As energy demand grows, advanced nuclear is a smart, reliable solution,” said Governor Braun. “A strong electrical grid, a diverse energy mix and new nuclear technologies are critical to powering our future.”
“Coming off a highly successful America’s Smartland Series on Nuclear Energy in the Midwest, the MGA looks forward to continuing the momentum and regional discussions around nuclear energy,” said Jesse Heier, Executive Director of the association.
“The Midwest is uniquely positioned to leverage its vast energy resources to create economic opportunity,” Heier added. “Further development of advanced nuclear energy will help drive continued growth in both energy production and regional economic output.”
More information about the Chair’s agenda and upcoming meetings will be announced soon. (Midwestern Governors’ Association)
Indiana tax amnesty opens in July
Businesses and individuals in Indiana can soon pay overdue taxes without penalties during the upcoming amnesty period.
Why it matters: This is the first chance in over a decade for taxpayers to clear their debts without additional fees. The Indiana Department of Revenue set the amnesty from July 15 to Sept. 9, following a legislative directive.
Details: The amnesty applies to delinquent taxes owed before Jan. 1, 2024, excluding those who participated in past programs. - Payment plans are available for individuals owing over $100 and businesses owing over $500, with debts due by June 2027 to avoid double penalties.
By the numbers: The state anticipates collecting between $156 million to $277 million this year. A contractor, United Collection Bureau, will assist in raising awareness, receiving 5.5% of amnesty payments. (Indiana Capital Chronicle)
1 big thing: Toll road's unknown impact
Indiana wants to start tolling Interstate 70 to fund widening and improvement projects.
Why it matters: Tolling would most likely drive some amount of traffic off the interstate, which cuts through the center of Indianapolis, and onto the city's already crumbling streets.
Driving the news: The state's application to the federal government for the tolling program proposes charging $15.60 to drive a car across the state on I-70 starting in 2029.
- The widening and repair projects would cost an estimated $6.5 billion with inflation, funded by bonds and toll revenue.
What they're saying: The city told Axios it's too soon to start thinking about the potential impact.
Yes, but: An earlier tolling study gives us some idea of what it could look like.
How it works: In general, as toll rates increase, toll revenue and traffic diversion increase too.
- Traffic diversion is when drivers seek alternate routes to avoid a toll. For example, local drivers who would have hopped on I-70 to get across town may instead take (free) city streets.
Zoom in: The state's tolling application references a 2018 traffic study, which projected a diversion rate up to 8.9%.
- With annual average daily traffic ranging from 21,000 to 140,000, a very rough estimate is an extra 2,000 to 12,500 cars would be on city streets any given day.
What's next: The state is awaiting a response from the Federal Highway Administration, which manages the pilot program the state has applied to.
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Traffic impacts related to tolling will be further explored if and when the application is approved, according to the Indiana Department of Transportation. (Axios)
Delayed Medicaid payments impact Indiana nursing homes
Indiana nursing homes are facing financial strain as they await hundreds of millions in back payments from the state’s Medicaid program.
Why it matters: The delay in payments affects smaller and newer companies the most, forcing them to slow down payments to their vendors, creating a ripple effect of financial difficulties.
- Providers have received their standard base rates but not the supplemental payments, which are crucial for maintaining operations.
Driving the news: The Centers for Medicare & Medicaid Services (CMS) has not approved the payment methodology for 2026, holding up funds.
- Indiana has missed multiple payments due to CMS’s request for more data and clarifications.
What’s next: Indiana is working with federal officials to resolve the issue, exploring new options to maintain funding.
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The state’s PathWays for Aging program, which coordinates long-term care services, is under scrutiny as lawmakers push for reforms to ease the payment process and improve service delivery. (Indiana Capital Chronicle)
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