2025 Legislative Session: What To Watch For

The 2025 legislative session is right around the corner. And, at least on my part, there is an element of uncertainty as to how it might shape out this year. This will be the first session under new governor Mike Braun who recently released his priorities. His lieutenant governor (Micah Beckwith), who will oversee Senate proceedings, has already made headlines. Senate Democrats have been rocked by scandal and leadership challenges. And, on top of all of that, Medicaid shortfalls and an end to COVID-era stimulus funding mean we might see some belt-tightening and a smaller budget than in years past.

Despite all of this, here are some topics where we might see some movement on this session:

• Tax reform
  • Legislative leaders are contemplating how to bring property tax relief without crippling revenue streams for local governments. We could see some more local income tax opportunities in exchange for property tax changes.
• Energy infrastructure
  • While there may be an interest in looking at how the state can continue to support increased energy capacity and lower utility costs, the movement here may be marginal and an onus may be put on local governments to change their zoning and permitting processes
• Housing availability & affordability
  • Similar to energy infrastructure, the state may look at some matters around the margins, but there seems to be an appetite for putting the onus on local governments to change their zoning and permitting processes to make development less cumbersome
• Childcare
  • This continues to be an issue for our chamber members and for businesses across the state and we'll keep track of legislation filed on this topic. Expect to see some conversations around programs to support licensure and some discussion on deregulation.
• $2 per pack cigarette tax increase
  • This is an issue that both the Greater Bloomington Chamber and the state chamber have advocated for in recent sessions to help encourage positive public health outcomes. While the final outcome of this legislation is hard to predict, the President Pro Tempore of the Senate indicated that it is more likely to get through the Senate than in previous years, especially as it could provide an avenue to shoring up the Medicaid shortfall.
• Road funding formula
  • While we might not see any legislation make it through this year, we can likely expect further conversation about possible changes to the road funding formula, especially in light of inflation and the increase of electric and more efficient vehicles.
• Education & workforce development
  • Talent readiness & retention remains a top issue and we will likely see some legislation addressing apprenticeships and internships
  • While there have been discussions around Indiana's inability to retain students that attend colleges and universities in the state, I would expect solutions here to be part of a longer-term conversation.
  • In terms of education, House Democrats have outlined universal pre-K as a top priority. However, given budget constraints, there may not be much movement on this front.

The legislative session always provides ample opportunity for unexpected twists and turns. The Chamber Advocacy team will track these topics and whatever else may spring up during the 2025 session.

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