6/9 Torchbearer Weekly Policy Update
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- 401(k)a-ching
- 📈 Indiana's bankruptcy filings surge
- Trump's travel ban returns
- 📚 Indiana's new school accountability model
- 🎓 IPS pre-K program changes fees
- 🚀 Hoosier innovations showcased globally
- 🔍 Indiana's preschool program faces cuts
- Share the Torchbearer Newsletter with Your Network!
- Important Dates
401(k)a-ching
Americans are socking away a record percentage of their income in retirement accounts, according to a new analysis from Fidelity Investments.
- 💰The total 401(k) savings rate — when including employer contributions — hit an all-time high of 14.3% of gross incomes in the first quarter, Fidelity reports.
The big picture: Investment advisers say the ideal percentage is 15% — so we're almost there.
🤖 Between the lines: Automatic enrollment and automatic increases are a big reason for the higher rate.
📈 Indiana's bankruptcy filings surge
Bankruptcy filings in Indiana are climbing as consumers and businesses face economic pressures from housing costs, credit card debt, and student loans.
Why it matters: Rising bankruptcy rates indicate financial strain among Hoosiers, potentially signaling broader economic challenges.
- The U.S. Courts reported a 13.1% increase in national bankruptcy filings for the year ending March 31.
- Indiana's Southern District saw a 13.2% rise in cases, with a total of 9,695 filings in 2024.
The big picture: Attorneys are observing a mix of factors contributing to the uptick in filings, including the end of the student loan repayment moratorium and economic impacts from the pandemic.
- Corey Benjoya notes an increase in business bankruptcies related to COVID-era SBA loans.
- Matthew Cree highlights student loan debt and inflation as significant stressors for clients, particularly younger generations.
What's next: Experts predict continued high bankruptcy rates through 2025, driven by economic uncertainty and persistent inflation.
- Harley Means anticipates sustained commercial filings, particularly in the trucking and gambling industries.
- Jim Tamke notes ongoing financial struggles in the recreational vehicle industry in northern Indiana. (Indianapolis Business Journal)
Trump's travel ban returns
President Donald Trump has reinstated a travel ban affecting citizens from 12 countries, with restrictions on seven others, effective Monday.
Why it matters: This policy echoes Trump's earlier tenure, aiming to tighten U.S. borders under the guise of national security, but it faces criticism for potential discrimination.
- The ban includes Afghanistan, Myanmar, and Iran, with heightened restrictions for countries like Cuba and Venezuela.
- Critics argue it vilifies communities seeking safety and opportunity in America, as noted by Oxfam America.
The backdrop: Trump's 2017 "Muslim ban" faced chaos at airports and legal challenges, ultimately upheld by the Supreme Court in 2018.
- The current ban follows a report on "hostile attitudes" and visa overstay rates, citing security concerns.
- Afghanistan's inclusion, despite its refugee contributions, has drawn ire, highlighting moral and ethical criticisms.
What's next: As the ban takes effect, scrutiny continues over its implications for international relations and civil rights.
- Legal challenges and advocacy efforts are likely, as seen with previous bans.
- The response from the international community and domestic stakeholders will shape future discourse on immigration policies. (Indianapolis Business Journal)
📚 Indiana's new school accountability model
Indiana education officials have unveiled a draft of a new school accountability framework, shifting from the A-F grading system to a model that values diverse student skills.
Why it matters: The proposed model encourages schools to nurture individual student strengths, moving away from a single-test assessment approach.
- This change aligns with House Enrolled Act 1498, mandating a new accountability model by December 2025 and implementation in the 2026–27 school year.
- The framework will assess outcomes like academic proficiency, work-based learning, and soft skills.
The big picture: The model supports a broader assessment of student success, including checkpoints for academic and soft skills development.
- Schools will earn points based on student performance in areas such as attendance, college-level coursework, and soft skills.
- A final version is anticipated by December, with public comments shaping its refinement.
What's next: Stakeholder feedback will continue to refine the model, enhancing transparency and clarity for parents.
- Public comment periods and focus groups will gather input through the fall.
- The aim is to implement a student-centered approach that reflects real-world competencies and readiness for post-secondary success. (Indiana Capital Chronicle)
🎓 IPS pre-K program changes fees
Indianapolis Public Schools' pre-kindergarten program will no longer be universally free, shifting to a sliding fee scale based on family income.
Why it matters: High-quality pre-K programs boost school readiness and literacy skills, but without universal access, low-income families may face challenges in accessing quality education.
- Funding cuts and changes to the state's On My Way Pre-K grant program prompted IPS's decision.
Driving the news: Starting this fall, the IPS pre-K program will introduce three cost tiers.
- Families with incomes below 130% of the federal poverty level can attend for free.
- Those making between 130% and 185% of the federal poverty level will pay $100 weekly.
- Others will pay $150 weekly, still more affordable than some other local options.
Catch up quick: Recent state budget changes reduced funding for local districts and limited eligibility for pre-K and childcare vouchers.
- This has resulted in a waitlist for the programs, impacting access for many families. (Axios)
🚀 Hoosier innovations showcased globally
Indiana University students recently shared their groundbreaking innovations at the 2025 Global Entrepreneurship Congress in Indianapolis, marking a significant milestone for the city's entrepreneurial landscape.
Why it matters: This prestigious event, hosted in a U.S. city for only the second time, spotlights Indianapolis as a hub for global entrepreneurship.
- IU alum Mark Cuban delivered the keynote, drawing attention to local talent and innovation.
- IU students presented bold startup ideas to an international audience of policymakers and investors.
Zoom in: Meet two standout student innovators:
🏒 Alex Kaluzna co-created Capshock, a mechanical mouthguard that alerts athletes to potential concussion risks via a color-changing dye capsule, offering an affordable alternative to electronic solutions.
🎵 Kaitlin Pet co-founded PetsAloud, a platform synchronizing music and animation to engage younger audiences with classical music through innovative multimedia experiences.
Between the lines: Both startups aim to make significant impacts in their respective fields by addressing critical challenges and enhancing user experiences.
- Kaluzna emphasizes the learning opportunity presented by the congress, while Pet highlights the alignment of her work with her studies at IU. (Axios)
🔍 Indiana's preschool program faces cuts
Indiana will limit its state-funded preschool program to 2,500 children next year, less than half the current enrollment, with reduced reimbursement rates for preschools.
Why it matters: These cuts reverse years of progress in expanding access to high-quality pre-K for low-income families, potentially impacting educational outcomes and financial stability for many.
- The Indiana Family and Social Services Administration (FSSA) announced the cap due to funding constraints.
- The On My Way Pre-K program, once bolstered by federal aid, now faces sustainability challenges without state support.
Shrinking funding sources: The state previously used federal pandemic aid and the Child Care and Development Fund (CCDF) to expand the program, but these resources are now limited.
- Nearly 18,000 children are on the waitlist for CCDF, and the state will cease using these funds for pre-K next year.
Impact on families and providers: Reduced funding threatens the viability of childcare providers and increases financial pressures on low-income families.
- Maureen Weber of Early Learning Indiana warns of potential "child care deserts" as providers struggle to sustain operations.
- Without adequate childcare, families may face increased reliance on public benefits, affecting the state's economic health. (Indianapolis Business Journal)
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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.