Indiana General Assembly Update: Mid-Session Momentum and What’s Still in Play

By Aspire Economic Development + Chamber Alliance | | 2.2.26

Aspire Economic Development Chamber Alliance Johnson County Indiana

Despite heavy snow and freezing temperatures last week, activity at the Indiana Statehouse remained brisk as lawmakers approached key mid-session deadlines. While weather forced the House to cancel session on Monday, January 26, the Senate pressed forward and concluded its first half of session on schedule.

The House cancellation pushed back deadlines for committee reports, second readings, and third readings. That timing matters. Of the roughly 758 bills and resolutions introduced this year, only a fraction will advance beyond this midpoint. Bills that fail to pass third reading are generally considered dead, with one important exception. If a bill passed committee but failed on the floor, its language remains “live” and may reappear later as an amendment or during conference committee negotiations.

Several high-profile proposals stalled before halftime, including legislation related to iGaming, a proposed social media ban for minors, and HB 1119, which would have authorized execution by firing squad. At the same time, a number of bills aligned with Aspire Johnson County’s legislative priorities continue to move forward.

Aspire’s advocacy this session remains focused on modernizing government systems to reduce regulatory burdens and improve efficiency, strengthening public safety to support business confidence, and advancing workforce participation, including early care and education.

Government Modernization

Two bills moving this session reflect increased attention on local government efficiency and service delivery.

HB 1315, authored by Rep. Shonkwiler, establishes a framework for reorganizing or dissolving certain townships beginning January 1, 2028. The bill outlines how township duties, assets, and services could transition to a designated municipality or county through a locally adopted plan. Aspire testified in support, noting that reduced duplication and clearer governance structures benefit residents and employers.

Revisions to the bill emphasize continuity. Updated language clarifies how essential services, including fire protection, would continue and how communities would fund those services if reorganization occurs. For businesses, this predictability reduces uncertainty and supports long-term planning.

SB 270, authored by Senators Rick Niemeyer, James Buck, and Greg Walker, takes a data-driven approach to township consolidation. The bill requires the Department of Local Government Finance to evaluate township performance and mandates mergers for those below a defined threshold. Unlike HB 1315, the bill merges but does not eliminate townships and establishes new governance and election provisions. SB 270 passed the Senate and is now before the House.

Public Safety

Public safety legislation remains active, including a proposed constitutional amendment related to bail.

SJR 1, authored by Senators Bray and Freeman, would amend the Indiana Constitution to allow judges to deny bail when a suspect poses a substantial risk to individuals or the community. The proposal would give Indiana judges discretion already available in most states and in the federal system. The resolution has been approved by one General Assembly and, if passed again this year, will appear on the ballot for voter approval. SJR 1 has passed the Senate and now moves to the House. Strong public safety policies remain foundational to attracting employers, talent, and investment.

Early Care and Education

While many child care proposals stalled during this non-budget year, early care and education remained a visible topic due to its connection to workforce participation. Aspire has engaged on these issues for several years and continues to view child care access as essential to a strong labor force.

HB 1177 advanced this session by expanding Indiana’s employer child care expense tax credit to more businesses and allowing employers to claim child care tuition expenses paid on behalf of employees’ children. The bill also authorizes local redevelopment commissions to use tax increment financing to support child care initiatives. Aspire testified in support, emphasizing that reliable child care improves employee retention and labor force participation. HB 1177 passed the House and now moves to the Senate.

Although it did not advance, HB 1149, co-authored by Rep. Julie McGuire, gained attention as a noteworthy policy concept. The bill would create an early childhood scholarship tax credit funded through private contributions. By building on an existing education credit, it reflects the type of market-based solution Aspire believes should remain part of future policy discussions tied to long-term workforce development.

Unlike in previous years, the General Assembly will not take an extended halftime break. Lawmakers now face three weeks of committee hearings followed by a short, three-day conference committee window. The pace will remain fast, and outcomes may shift quickly. Aspire will continue monitoring legislation closely and advocating for policies that support business success and economic growth in Johnson County and across Indiana.