Indiana Legislature Passes Budget, Prioritizes Education and Expands Choice 

“Indiana lawmakers passed a budget that strengthens public and private education, expands opportunities for families and makes student-centered policy a priority. This budget continues Indiana’s long-standing commitment to putting students first by increasing K-12 funding, preserving support for charter schools, maintaining reading, math, work-based learning and educator recognition as priorities and opening the doors to private school choice for all families. Every Hoosier student—regardless of ZIP code—will benefit from greater access to high-quality options and the resources they need to succeed. 

“We are grateful to Gov. Mike Braun, House Speaker Todd Huston, Senate President Rod Bray, Sens. Jeff Raatz, Ryan Mishler and Reps. Bob Behning and Jeff Thompson for their leadership and unwavering commitment to students. Their work ensures Indiana remains a national leader in expanding educational opportunity, strengthening public education and building the workforce of tomorrow.” 

About the Budget 

The approved Indiana budget will: 

Education Funding: 

• Increase K-12 tuition support by 2% annually, totaling $640 million in new funding over the biennium. 

Private School Choice 

• Expand the Choice Scholarship Program to make all students eligible for a private school voucher regardless of family income beginning in FY 2026. Indiana joins more than a dozen states nationwide in establishing universal eligibility for private school choice.   

• Fund the Education Scholarship Account (ESA) program for students with disabilities at $10 million per year and remove income eligibility.  

• Preserve funding for private and public virtual students at 85% of the amount that brick-and-mortar students receive in current law. 

Public School Choice 

• Maintain funding for the Charter and Innovation Network School Grant at $52.6 million annually, through which charter schools will receive $1,400 per pupil. 

Career Scholarship Accounts  

• Maintain funding for Career Scholarship Accounts at $10 million annually to help students pursue career-aligned training and internships. 

Career Coaching 

• Provide $7.5 million annually to support statewide career coaching initiatives. 

Freedom and Opportunity in Education Fund 

• Allocate $50 million to support student-focused innovations.  

• Allow flexible use by the Department of Education to support priorities such as: 

• Interactive advising tools aligned with new diploma requirements. 

• Recruitment of educators in high-need areas. 

• Expansion of computer science education programs. 

• Dropout prevention and student recovery grants. 

• Science of Reading implementation and evidence-based literacy interventions. 

Teacher Appreciation Grants 

• Provide $35 million annually to award stipends of up to $7,500 to the state’s highest-performing teachers.