Senate passes biennial budget after tense floor debate over Medicaid, vouchers and cuts

The Indiana Senate approved the conference committee report for House Bill 1001, the state’s 2025-27 budget, after extended floor debate that split lawmakers along policy and fiscal lines.

Senator Micheller presented the conference committee report and outlined the topline tradeoffs, saying the package used across-the-board reductions and targeted revenue changes to cover a projected $2.4 billion shortfall: “A lot of tough decisions, but so all the agencies, the statewides, the courts, and the higher ed, we cut everything 5%,” he told colleagues.

The report funds K-12 at a 2% increase each year (net of new voucher students), increases Medicaid appropriations substantially and raises tobacco taxes to help cover Medicaid spending. The plan also reduces funding for local public health from a previously proposed $100 million a year to $40 million, cuts some programs for older…