6/9/2026 Torchbearer Weekly Policy Update
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- Report: 80% of Eligible Low-Income Children Not Served by State’s Subsidized Childcare Programs
- Governor Suspends Indiana’s Gas Tax for 3rd Time
- Indiana Senate’s No. 2 Republican Steps Down From Post After Split from Bray
- Beau Bayh Wins Democratic Secretary of State Nomination
- Hoosier Kids Are Doing Worse Than Before the Pandemic
- State Drafts Childcare Regulations Governor Says Will Boost Affordability
- State Revenues Continue to Beat Projections
- Share the Torchbearer Newsletter to with Your Network!
- Important Dates
Report: 80% of Eligible Low-Income Children Not Served by State’s Subsidized Childcare Programs
Despite new state funding, subsidized childcare programs will serve fewer than 20% of eligible Hoosier children by 2026, according to the Indiana Fiscal Policy Institute.
Why it matters: Many families rely on childcare to enable parents to work, yet the current funding only supports a fraction of those in need.
- Approximately 300,000 children are eligible for vouchers, but only 43,000 were enrolled as of February.
By the numbers: The State Budget Committee approved a $200 million boost, but this won’t suffice.
- Enrollment is projected to hit 57,000 by 2026, leaving 20,000 children still waiting.
What’s next: The institute plans to release a report this summer on long-term funding solutions for Indiana’s childcare programs. (IBJ)
Governor Suspends Indiana’s Gas Tax for 3rd Time
Indiana Gov. Mike Braun announced an extension of the state’s gas tax holiday as oil prices soar due to geopolitical tensions.
Why it matters: The suspension offers financial relief to consumers amid rising fuel costs, reducing gasoline prices by 62.5 cents per gallon.
- This measure aims to ease the economic burden on Indiana residents as the average gas price stands at $3.58 per gallon, significantly below the national average of $4.26.
The big picture: The ongoing conflict in Iran has disrupted global oil supply, impacting prices and prompting Indiana’s tax relief measures.
- The state has already lost about $190 million in tax revenue from the suspensions but plans to compensate using reserve funds.
What’s next: A further extension beyond August 7 would require a special legislative session, as current state law limits emergency relief to 120 days.
- Discussions on long-term road funding and infrastructure investment remain critical, with potential legislative action needed to address revenue shortfalls. (IBJ)
Indiana Senate’s No. 2 Republican Steps Down From Post After Split from Bray
Sen. Chris Garten has resigned as the majority floor leader of the Indiana Senate amid speculation he may challenge Senate President Pro Tem Rodric Bray.
Why it matters: This leadership change highlights potential internal conflicts among Indiana Republicans, especially after a contentious primary campaign.
- Garten, a Trump supporter, backed the redistricting push contrasting with Bray’s stance.
- The leadership dynamics could influence Indiana’s legislative priorities and decision-making.
The backdrop: Garten cited a lack of alignment with current strategic directions as his reason for stepping down.
- His resignation comes just weeks after six Republican senators, opposing redistricting, were ousted in primaries.
What’s next: The Republican caucus, holding a 40-10 majority, will decide on leadership after the November election.
- Bray has indicated he plans to remain in his role, anticipating potential challenges. (Indiana Capital Chronicle)
Beau Bayh Wins Democratic Secretary of State Nomination
Party insiders at the Indiana State Democratic Convention nominated Beau Bayh as their candidate for secretary of state for the November general election, receiving 61% of the 2,269 votes cast.
Why it matters: By choosing Bayh, delegates aim to position him as a strong candidate to challenge the Republican nominee, which will either be the controversial incumbent Diego Morales or a newcomer.
- The midterm year provides a favorable context for Democrats, as the party not in power usually gains ground.
The stakes: Delegates focused on electability, with Bayh’s political legacy and $2.4 million campaign fundraising bolstering his statewide recognition.
- Potter, representing a more progressive platform, challenged Bayh on campaign contributions and ran a grassroots campaign.
Convention dynamics: The event highlighted an identity crisis within the Democratic Party regarding its values and strategies for winning elections.
- Despite internal divisions, unity remains crucial for a successful contest in November. (IndyStar)
Hoosier Kids Are Doing Worse Than Before the Pandemic
Hoosier children are worse off than they were before the pandemic, according to a new report.
Why it matters: Data comparing economic, education, health and family factors from 2019 to 2024 found that many children were already struggling — before recent safety-net reductions and rising living costs that researchers say could further strain families.
Driving the news: Indiana's national ranking of overall child well-being fell four spots to 29th in the annual KIDS COUNT Data Book from the Annie E. Casey Foundation, released Monday morning.
- The 2026 report examines data from 2019 through 2024, which Leslie Boissiere, Annie E. Casey Foundation vice president of external affairs, says lets researchers see the measurable impact of safety net investments.
- "Early data does raise some concerns about what's going to happen in terms of child well-being and outcomes for children," says Boissiere. "Particularly around economic security in a time when we know costs are rising for food and housing and basic necessities."
Zoom in: The state's economic well-being score and ranking dropped in this year's report, from 11th to 23rd nationwide.
- It found a greater share of children living in poverty or in households with a high housing cost burden in 2024 than in 2019.
Yes, but: Indiana's health ranking improved to 27th, better than in the last four years.
What they're saying: "The data reveal where progress is real and illuminate areas where we thought we were succeeding but still have work to do," said Tami Silverman, president and CEO of Indiana Youth Institute, in a news release.
- "We know kids need stable homes, strong schools, nutritious food, meaningful relationships and opportunities to learn, play and grow so they can grow up healthy and connected and thrive as adults."
Between the lines: The most recent data highlights how, even though Indiana ranks highest in education (11th compared to other states), many students are still struggling to meet academic standards.
- More than half of Indiana fourth graders cannot read proficiently, and nearly seven out of 10 eighth graders are not proficient in math.
- And 60% of young Hoosiers are not attending school — a figure that's remained relatively unchanged.
Zoom out: Children's well-being declined in 29 states and improved in 15.
- Five of the seven highest-ranked states were in the Northeast.
- Eleven of the 15 lowest-ranked states were in the South. However, eight Southern states improved their scores, including South Carolina, which rose 38 points — the largest increase of any state.
Stunning stat: The teen birth rate continues to decline, down 24% for the period researchers examined and down nearly 80% since 1990 — holding at 13 births per 1,000 females ages 15 to 19 in 2023 and 2024.
The bottom line: The report suggests state policy choices can meaningfully influence child outcomes even as national indicators continue to deteriorate.
- There's a "direct correlation" between "how states invest in children and how kids are doing," Boissiere says. (Axios)
State Drafts Childcare Regulations Governor Says Will Boost Affordability
Indiana’s state agency has proposed new childcare regulations, aiming to lower costs for providers and families by relaxing staffing and facility requirements.
Why it matters: Affordable childcare is crucial for both families and businesses, enabling parents to work and contribute to the economy.
- Governor Mike Braun emphasized the economic impact of childcare, stating that the reforms will help businesses grow and innovate.
- The changes aim to increase childcare capacity and make it more accessible across the state.
Details: Proposed regulations include lowering qualifications for childcare center directors, allowing directors with a child development associate’s degree and two years of experience.
- Lead caregivers would only need a high school diploma.
- Other changes include relaxed rules on mixing age groups and using sleeping bags or mats.
What’s next: Public comments on these proposed regulations are due by July 6, with hearings scheduled on the same day. Stakeholders should consider how these changes might impact their operations or childcare options. (Indiana Capital Chronicle)
State Revenues Continue to Beat Projections
Indiana’s revenue collections for May surpassed recent estimates, reaching nearly $1.7 billion, according to the Indiana State Budget Agency.
Why it matters: The increase in revenue highlights a robust economic performance, with corporate taxes, interest, and insurance revenues significantly contributing to the surplus.
- Corporate taxes increased by 79.4%, while interest collections rose by 46.6%.
- These gains offset declines in sales and individual income taxes, each down by 1.4%.
By the numbers: Year-to-date, Indiana’s General Fund revenues total nearly $21 billion, marking a $450 million increase over April 2025 forecasts and a 7.2% rise compared to the previous fiscal year.
What’s next: Despite some areas underperforming, the state has maintained a strong fiscal position, ensuring continued economic growth and stability. Stakeholders should remain informed through the full May 2026 revenue report. (Inside Indiana Business)
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Important Dates:
Important Dates:
Wednesday, June 17 at 10:00am: Commission on Improving the Status of Children in Indiana at Government Center South, Conference Room C
Thursday, July 23rd at 10:00am: Commission for Higher Education at the Indiana State Library
Tuesday, August 11th at 9:00am: State Board of Education at Government Center South
We will add interim study committee meetings as they are announced.