Last Call at the Statehouse: What Aspire is Watching for Employers
The Indiana General Assembly has entered what is expected to be its final week of the 2026 session. In just three short weeks, committees have worked through legislation that crossed chambers at halftime. Now, with committee report deadlines behind us and second and third reading deadlines here, attention shifts to the most compressed and unpredictable phase of session: conference committees.
Under legislative rules, any bill that did not pass out of its assigned committee by last Thursday is technically “dead” for 2026. However, because those measures cleared the first half of session, their language may still resurface as amendments to other bills or during conference committee negotiations.
Conference committees, which are four-member panels representing both chambers and both parties, reconcile differences between House and Senate versions of the same bill. Meetings can be called with as little as one hour’s notice, require unanimous agreement, and often determine final policy outcomes. In a typical year, lawmakers devote two weeks to conference committees. This year, they are scheduled for just three days.
As outlined in Aspire’s 2026 Legislative Priorities, our advocacy remains centered on modernizing government systems to reduce regulatory burdens, strengthening public safety to reinforce business confidence, and advancing workforce participation, including early care and education. Below is where those issues stand as the gavel nears.
Government Modernization
Earlier in session, two township reform proposals advanced: Senate Bill 270 and House Bill 1315. Since crossover, their paths have diverged, but their language has merged.
HB 1315 did not receive a hearing in the Senate Local Government Committee and is no longer independently moving. However, key elements were incorporated into SB 270, which moved out of House Local Government and House Ways and Means and is headed to House third reading.
SB 270 takes a data-driven approach to township consolidation, directing the Department of Local Government Finance to evaluate township performance and mandating consolidation for those below defined thresholds. Unlike HB 1315’s broader elimination mechanisms, SB 270 focuses on mergers and establishes updated governance structures.
The bill now incorporates a framework from HB 1315 to reorganize or dissolve certain townships that largely overlap with municipalities – specifically, those sharing at least 80% of their boundaries with a municipality and with at least 51% of their population residing within that municipality.
Aspire supports modernization efforts that reduce duplicative government, streamline service delivery, and improve accountability. Johnson County’s two voluntary township consolidations demonstrate that reform can be locally driven and pragmatic.
Public Safety
One of Aspire’s core priorities this year is reinforcing public safety as a foundation of economic vitality.
Senate Joint Resolution 1 would amend Indiana’s Constitution to allow judges to deny bail when a defendant poses a substantial risk to individuals or the community, providing discretion already available in most states and in the federal system.
SJR 1 passed both chambers unamended. Because an identical version was approved by a previous General Assembly, the amendment will now appear on the ballot this fall for voter consideration.
For business leaders, this proposal is about predictability and safety. Communities where violent offenders can be held when they pose demonstrable risk are communities where employers, employees, and families have greater confidence.
Early Care and Education
Aspire has long engaged on child care and workforce participation issues, recognizing that reliable early care directly influences labor force participation.
House Bill 1177 expands eligibility for Indiana’s employer child care expenditure income tax credit. Currently limited primarily to start-up and capital costs for on-site facilities and to employers with 100 or fewer employees, HB 1177 raises the employer size cap to 500 employees and broadens eligible costs to include operating expenses and payments to child care providers or intermediary entities.
The bill does not increase funding but improves flexibility and utilization of a credit already budgeted but underused. It also authorizes redevelopment commissions to use tax increment financing revenue to incentivize construction or expansion of child care facilities, recognizing child care as workforce infrastructure.
If HB 1177 clears third reading in the Senate, it is expected to proceed to the Governor.
Meanwhile, Senate Bill 4 has evolved into a broad fiscal omnibus measure. Aspire supported an amendment adding the Child Care and Development Fund (CCDF) to the list of agencies eligible to receive allocations from the state’s $300 million Financial Responsibility and Opportunity Growth Fund. This change could help stabilize voucher support for families relying on child care assistance.
SB 4 continues through second and third reading with multiple amendments attached.
Economic Development
Senate Bill 281 was amended in House Ways and Means to sharpen its focus on regional economic development. The amendment requires the Indiana Economic Development Corporation (IEDC) to allocate $35 million annually in redevelopment tax credits for approved community projects and directs an additional $15 million toward small town opportunity initiatives.
The amendment also removed language creating a new regional development advisory council structure. While regional collaboration remains important, that framework was not the appropriate vehicle. Its removal provides greater clarity and flexibility for communities.
At publication, SB 281 had not yet been called for second reading. If it stalls, core provisions may resurface in conference committee.
Conversely, Senate Bill 264 proposed significant changes to eligibility for the EDGE tax credit, including requiring new jobs to exceed 200% of Indiana’s average wage and imposing a 25% wage increase requirement for certain in-state expansions.
As drafted, these changes could reduce Indiana’s competitiveness in attracting and retaining job-creating projects, particularly for existing Hoosier businesses. Fortunately, SB 264 did not receive a House Ways and Means hearing, though sponsors may attempt to advance elements in conference committee.
Final Days
The final week of session often brings rapid movement and last-minute negotiations. With only three scheduled days of conference committees, outcomes may shift quickly.
Aspire will remain engaged through adjournment, advocating for practical government modernization, reinforcing public safety, supporting workforce participation, and opposing measures that could hinder economic growth.
We will provide a comprehensive post-session analysis once the final gavel falls.