9/22/2026 Torchbearer Weekly Policy Update
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- EPA Backs Indiana Coal Combustion Residual Program Takeover
- Indiana Continues Gas Tax Reimbursements
- Federal Reserve Hikes Key Rate for 1st Time in 3 Years
- Indiana Legislators Hear Complaints Over Unequal Standards for Child Advocates in Court Cases
- Gov. Braun Appoints IBJ Media Exec to Lead IEDC
- Indiana Approved for Mass SNAP Replacement
- September 2026 Quarterly State Revenue Update
- Indiana Unemployment Stays Flat in August
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- Important Dates
EPA Backs Indiana Coal Combustion Residual Program Takeover
Indiana is on the cusp of taking over permits for toxic coal byproduct management, poised to become the largest program in the U.S.
Why it matters: This move puts Indiana in control of environmental oversight, allowing local experts to manage coal ash disposal.
- This is part of a broader strategy encouraging states to handle their own coal combustion residuals (CCR).
The big picture: Indiana is the 10th state pushing for control over CCR units, emphasizing transparency and accountability.
- The program will be managed by the Indiana Department of Environmental Management (IDEM), which is preparing to implement it by early next year.
What they’re saying: “This step reinforces, not weakens, safeguards for human health and the environment,” says U.S. EPA Deputy Administrator David Fotouhi.
- Gov. Mike Braun adds that the approach “strengthens environmental safeguards and keeps permitting decisions here at home.”
What’s next: The federal comment period begins soon, with final approval expected by early 2027.
- CCR units will need to submit applications within 180 days post-approval, with IDEM responsible for review and decisions. (Indiana Capital Chronicle)
Indiana Continues Gas Tax Reimbursements
Indiana’s State Board of Finance approved the third round of reimbursements to local governments for the state’s gas tax suspension.
Why it matters: This initiative ensures that local infrastructure projects remain funded despite the temporary loss of gas tax revenue.
- The state has committed $139 million from the State Highway Fund to cover July losses.
The big picture: Governor Mike Braun initiated the tax suspension to alleviate fuel costs during the Iran conflict.
- The suspension remains effective through October 6, potentially costing $1.1 billion if extended further.
What they’re saying: “Indiana’s gas tax holiday is a testament to sound fiscal stewardship,” notes State Treasurer Daniel Elliott.
- Gov. Braun emphasizes the importance of keeping fuel prices affordable while maintaining local infrastructure funding.
What’s next: The Comptroller’s Office will distribute $46 million to local governments this week.
- Gov. Braun plans to propose using state reserves to cover losses when the legislature reconvenes in January. (Indiana Capital Chronicle)
Federal Reserve Hikes Key Rate for 1st Time in 3 Years
The Federal Reserve has increased its benchmark interest rate for the first time since 2023, aiming to tackle persistently high inflation.
Why it matters: Higher interest rates mean increased borrowing costs for consumers, affecting mortgages, auto loans, and credit cards.
- This move signals the Fed’s commitment to its 2% inflation target despite potential political fallout.
The big picture: With midterm elections approaching, affordability is a crucial issue for voters.
- Rising costs for essentials like groceries, gas, and housing are already straining many Americans‘ budgets.
Driving the news: Fed Chair Kevin Warsh, appointed by former President Trump, has shifted from supporting lower rates to endorsing this hike.
- The Fed’s quarterly projections indicate a possible additional rate increase to 4.1% later this year. (Inside Indiana Business)
Indiana Legislators Hear Complaints Over Unequal Standards for Child Advocates in Court Cases
Several mothers have expressed frustration with court-ordered interventions concerning their children, urging Indiana lawmakers to enhance oversight.
Why it matters: The lack of uniform standards for child advocate programs in Indiana raises concerns about their independence from judges‘ decisions.
- Without consistent guidelines, advocates may not effectively counterbalance the Department of Child Services’ recommendations.
Details: A legislative study committee heard testimony about the roles of guardian ad litems and court-appointed special advocates. Some witnesses claimed that these advocates misrepresented cases, leading to questionable judicial decisions, like child removals or parental restrictions.
What they’re saying: Eden Mast, a parent, highlighted the absence of an independent review process: “My complaints were returned to the exact court relying on that GAL.”
- Rachel Vilensky, director of the Family Law Clinic at IU, pointed to a lack of legal knowledge and independence among advocates, calling for statewide standards.
What’s next: Lawmakers are considering potential legislative actions, like uniform training standards and shared advocacy resources for smaller counties.
- Funding for advocacy programs has remained unchanged since 2018, prompting discussions about increasing financial support. (Indiana Capital Chronicle)
Gov. Braun Appoints IBJ Media Exec to Lead IEDC
Gov. Mike Braun announced that Mitch Frazier will become the next leader of the Indiana Economic Development Corp. (IEDC), where he initially worked nearly 20 years ago.
Why it matters: Frazier’s appointment comes at a pivotal time for Indiana’s economic growth. His leadership is expected to drive job creation and attract investments, aligning with the state’s goals to enhance business opportunities.
- His experience spans public service and business leadership, offering a unique perspective to the IEDC.
What’s next: Frazier will join the IEDC as president on Oct. 5, succeeding Josh Richardson. He plans to focus on building teams and partnerships to further Indiana’s economic development.
- Frazier aims to cultivate an environment conducive to business growth and talent retention in the state.
The backdrop: Frazier, a Westfield resident, replaces Richardson, who will move into a private sector role. His transition is supported by Indiana Commerce Secretary Chuck Goodrich, highlighting a seamless leadership change. (IBJ)
Indiana Approved for Mass SNAP Replacement
The Indiana Family and Social Services Administration (FSSA) will issue additional SNAP benefit replacements to Hoosiers in 19 counties affected by power outages on August 11.
Why it matters: This move, approved by the USDA, helps alleviate financial strain on families whose food spoiled during outages, with potential replacements ranging from 15% to 60% of a family’s monthly SNAP allotment.
- Benefits will be loaded onto EBT cards by September 26, requiring no paperwork or interviews.
Impact: The state projects 36,533 households will qualify for federal support, potentially worth up to $10 million across eligible zip codes.
- Eligible zip codes include all of Lake and Porter counties, as well as specific areas in Carroll, Dearborn, Decatur, Delaware, Fayette, Franklin, Hancock, Henry, LaPorte, Madison, Marion, Pulaski, Randolph, Rush, Tipton, Union, and Wayne counties.
- Households receiving benefits between Aug. 5-9 will get a 60% replacement, while those from July 19-23 receive 30%, and July 11-17 get 15%.
What’s next: The Indiana Housing and Community Development Authority extends hotel vouchers for displaced Hoosiers for another 30 days as recovery efforts continue. FEMA has distributed $89 million in disaster relief, with total aid surpassing $100 million. (Inside Indiana Business)
September 2026 Quarterly State Revenue Update
As of August 2026, fiscal year 2027 year-to-date revenues totaled $3,477.5 million, marking a substantial increase.
Why it matters: This growth surpasses the December 2025 revenue forecast by $46.3 million (1.4%) and is $309.8 million (9.8%) higher than the previous year.
- Sales and use tax account for 56.6% of the total revenues, making it the primary revenue source.
- Individual income taxes contribute 33.8% to the state’s revenue.
The big picture: Revenue collections have already exceeded forecast projections in the first two months, suggesting a robust economic outlook.
What’s next: A positive revenue forecast in December 2026 could boost the state’s structural surplus beyond the current FY 2027 reserve projections of over $5 billion, further strengthening fiscal stability. (Indiana Fiscal Policy Institute)
Indiana Unemployment Stays Flat in August
Indiana’s unemployment rate held at 3.3% for the third straight month in August, according to the Indiana Department of Workforce Development (DWD).
Why it matters: This stability reflects continued strength in the state’s job market, with the addition of 4,000 private sector jobs indicating resilience amidst broader economic fluctuations.
By the numbers:
- Total private employment in Indiana reached 2,843,800 in August.
- The state’s labor force participation rate dipped slightly to 63%, still above the national average of 61.6%.
What’s next: Indiana’s job market shows potential for further growth, particularly in manufacturing, leisure, hospitality, and professional services sectors. (Inside Indiana Business)
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Important Dates:
Important Dates:
Tuesday, September 22nd at 1:00pm: ISC on Child Services in the House Chamber
Thursday, September 24th at 10:00am: ISC on Employment and Labor in Room 156-A
Thursday, September 24th at 1:00pm: ISC on Pension Management Oversight in Room 404
Monday, September 28th from 1:15-4:00pm: IEDC Committees and Full Board Meeting, streaming here
Tuesday, September 29th at 10:00am: ISC on Energy, Utilities, and Telecommunications in the House Chamber
Tuesday, September 29th at 10:00am: Legislative Council’s Audit and Financial Reporting Subcommittee in Room 431
Tuesday, September 29th at 10:00am: Indiana Early Learning Advisory Committee at Edna Martin Christian Center (2259 N. Ralston Ave., Indianapolis) or streaming here
Tuesday, October 13th at 10:00am: Agricultural Promotion and Regulation Task Force in the Senate Chamber
Wednesday, October 14th at 9:30am: ISC on Fiscal Policy in Room 404
Wednesday, October 14th at 1:00pm: State Fair Advisory Committee in the Senate Chamber
Thursday, October 15th at 1:30pm: Indiana Finance Authority Meeting at One North Capitol, Suite 900
Thursday, October 22nd at 1:00pm: ISC on Pension Management Oversight in Room 404
We will add interim study committee meetings as they are announced.