5/19 Torchbearer Weekly Policy Update
Thank you for letting us be your trusted source for local, state, and federal policy updates. We will be off next week in honor of Memorial Day weekend and celebrating our editor, Ben Auslander’s graduation from high school. Our next report will come out on June 2, 2o25. Let’s dig in…
- Independent audit launched for Indiana agency
- Tax bill's winners and losers revealed
- Tax bill sparks debate over Medicaid and SNAP changes
- Indiana's higher education faces budget cuts and reforms
- Share the Torchbearer Newsletter with Your Network!
- Important Dates
Independent audit launched for Indiana agency
The state of Indiana has commissioned FTI Consulting to conduct a forensic audit of the Indiana Economic Development Corp. (IEDC) amidst concerns of potential impropriety.
Why it matters: This audit aims to address governance issues and financial irregularities within the IEDC and its affiliates, impacting state funds and economic development strategies.
- The audit follows a report by Hannah News Service questioning the IEDC's governance and relationship with Elevate Ventures.
Driving the news: State funds associated with the IEDC's venture capital firm, Elevate Ventures, have been frozen. Additionally, the Indiana Economic Development Foundation's spending has been suspended pending the audit's outcome.
What's next: The audit, expected to take six to 12 months, could lead to changes in the IEDC board based on the findings. No further updates will be provided until the audit's completion. (Inside Indiana Business)
Tax bill's winners and losers revealed
The various tax analyses only look at a piece of what's under consideration in the House. There are two other tax bills in various stages.
- One, voted out of committee yesterday, would slash Medicaid funding. The other would radically overhaul SNAP, historically known as food stamps.
- All three tax bills will ultimately get rolled together into the big legislation that could be voted on before Memorial Day.
What they're saying: "When you put the tax cuts together with the spending cuts that are proposed it doesn't just do a little for low- and moderate-income families, it's proposing to take benefits away from people," said Kris Cox, the director of federal tax policy at the Center on Budget and Policy Priorities.
- This is an income group that also faces disproportionately higher costs from new tariffs.
For the record: "The One, Big, Beautiful Bill is going to deliver historic tax relief for everyday Americans and implement commonsense reforms that will protect and preserve SNAP and Medicaid for the Americans who these programs were intended to serve," White House spokesman Kush Desai said.
- "The President has repeatedly said that he will ensure that these programs will remain a reliable and sustainable lifeline for generations to come, and we are keeping that promise for the American people."
- The Trump administration said the only people who will lose Medicaid coverage are people who shouldn't be covered in first place: adults who could be working and those who are undocumented immigrants. It also argued the SNAP changes aren't cuts but a way to share costs with states.
Follow the money: While the very poor lose out, there are things to like for working-class and middle-class Americans.
- Those who earn tipped income or work overtime receive new tax breaks. A higher standard deduction will also be a boon for taxpayers.
- The elderly also score a bonus. Instead of a direct elimination of income taxes on Social Security, Republicans came out with a slight variation: a temporary increase in the standard deduction for those over age 64.
Perhaps surprisingly, some of these provisions scramble red and blue lines.
- If the Medicaid changes pass, it would be a huge blow to hospitals in rural areas, something that could be particularly devastating to maternal health care. Some hospitals would be forced to close.
- At the same time, the increase in the state and local tax deduction, better known as SALT, would be a boon to more blue states.
Reality check: Things are in first draft mode. Various pieces of the tax bill are in different stages of advancing in the House. The Senate journey has not yet begun.
The bottom line: The outlook isn't so beautiful for the poorest Americans. (Axios)
Tax bill sparks debate over Medicaid and SNAP changes
The House is considering multiple tax bills, including one that would cut Medicaid funding and another that would overhaul SNAP (food stamps).
What they're saying: "When you put the tax cuts together with the spending cuts, it doesn't just do a little for low- and moderate-income families, it's proposing to take benefits away from people," says Kris Cox, director of federal tax policy at the Center on Budget and Policy Priorities.
- This income group also faces higher costs due to new tariffs.
For the record: The White House claims the "One, Big, Beautiful Bill" will provide historic tax relief and reforms to preserve SNAP and Medicaid.
- Only those who shouldn't be covered by Medicaid will lose coverage, according to the administration.
Follow the money: While the very poor may lose out, there are benefits for working- and middle-class Americans.
- New tax breaks for those earning tipped income or working overtime.
- A higher standard deduction benefits taxpayers.
- Elderly gain from a temporary increase in the standard deduction for those over 64.
Reality check: The tax bills are in early stages and the Senate has yet to begin its process.
The bottom line: The outlook remains challenging for the poorest Americans. (Axios)
Indiana's higher education faces budget cuts and reforms
The Commission for Higher Education in Indiana discussed new laws and the evolving landscape for higher education, highlighting reduced budgets, increased state oversight, and changes to scholarship criteria.
Why it matters: These changes impact the accessibility and quality of higher education for Hoosier students, influencing their future opportunities.
- State funding for higher education has been cut by 5% due to a grim revenue forecast.
- Two key scholarship programs, 21st Century Scholars and Frank O’Bannon Grants, remain unchanged, seen as a win for accessibility.
State of play: Unused funds from the Frank O'Bannon program can now revert to the general fund, marking a shift in financial management.
- The Governor’s Workforce Cabinet has been abolished, with its duties transferred to the higher education body.
Legislative impacts: New contracting rules and tenure reviews will affect transparency and faculty operations.
- Diversity committees are no longer required, but underserved counties are recognized for scholarship eligibility.
The bottom line: The budget and policy changes pose challenges but also opportunities to align education with workforce needs. (Indiana Capital Chronicle)
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Important Dates:
We anticipate Legislative Council to meet in late May/early June to provide topics for interim study committees. We will report back any updates as they become public.