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HB 1001

State budget.

2025 Regular Session Introduced by Chris Garten and 6 co-sponsors

House Bill 1001 allocates funds for education, healthcare, and state operations, introduces tax credits, and enhances budget management, impacting various stakeholders in Indiana.

Signed by the Governor
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Bill Summary · HB 1001

Summary of House Bill 1001 (HB 1001)

Overview

House Bill 1001, titled "State Budget," was signed into law by the Governor on May 6, 2025. This legislation appropriates funds for various state operations, including capital expenditures, education, healthcare services, and other essential state functions. The bill also introduces several tax credits and modifies existing financial regulations.

Key Provisions

  • Appropriations: The bill allocates funds for:

    • Capital expenditures
    • Operation of state government
    • K-12 and higher education
    • Medicaid and other health services
    • Various other distributions and purposes

  • Tax Incentives: Extends the review and evaluation of tax incentives by the legislative services agency through 2030. Introduces new tax credits, including:

    • Rural Fund Capital Investment Tax Credit
    • Hoosier Workforce Investment Tax Credit
    • Beginning Farmer Tax Credit

  • Budget Management:

    • Requires the budget director to withhold at least 5% of appropriations to state agencies for salaries and operating expenses, with certain exclusions.
    • Allows the budget director to reduce appropriations if a state agency can meet its obligations with less funding.

  • Sales Tax Exemptions:

    • Introduces sales tax exemptions for feminine hygiene products and adult diapers.
    • Establishes sales tax holidays for school supplies and other items.

  • Education Funding:

    • Requires the Secretary of Education to report on aligning state funding for dual credit and advanced placement programs with new high school diploma requirements.
    • Establishes a teacher appreciation grant program to support teacher retention and recruitment.

  • Healthcare and Social Services:

    • Allocates funds for the establishment of a health care engineering fund for plan reviews of health facilities.
    • Modifies eligibility criteria for various social service programs, including the On My Way Pre-K program.

  • Miscellaneous Provisions:

    • Changes the name of the state agency contingency fund to the personal services/fringe benefits contingency fund.
    • Establishes the Indiana Local Government Investment Pool Board to manage investment policies.

Impact

This bill affects a wide range of stakeholders, including:
- State Agencies: Changes in budget management and appropriations will impact how state agencies operate and manage their finances.
- Educational Institutions: Funding for K-12 and higher education will be influenced, potentially affecting program availability and quality.
- Healthcare Providers: Changes in Medicaid funding and healthcare regulations may impact service delivery and funding mechanisms.
- Taxpayers: New tax credits and exemptions could provide financial relief to certain groups, such as farmers and low-income families.

Timeline

  • Introduced: January 21, 2025
  • Passed by House: February 20, 2025
  • Passed by Senate: April 10, 2025
  • Signed by Governor: May 6, 2025
  • Effective Dates: Various provisions take effect upon passage, with some retroactive to January 1, 2025, and others effective on specific future dates.

This comprehensive budget bill represents a significant legislative effort to manage state finances, support education, and enhance social services in Indiana.

Compiled from official sources — confirm details with the bill’s official record.

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