6/30/2026 Torchbearer Weekly Policy Update
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- New Indiana Laws Taking Effect July 1, From a Cellphone Ban to a New ACT Alternative
- Inflation Hits 4.1 Percent in May, Highest Level in 3 Years
- Former Gov. Eric Holcomb to Co-Lead Nationwide AI Workforce Effort
- Indiana SNAP Payment Error Rate Rises, Increasing Likelihood State Will Be On The Hook for Benefits
- Indiana Assessed Value Rises 10% Since 2025
- Supreme Court Rules States Can Accept Mail Ballots After Election Day
- Indiana Fiscal Policy Institute Releases Analysis on State Economic Development Incentives
- Governor Directs State to Reimburse Local Governments for Gas Tax Holiday Revenue
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- Important Dates
New Indiana Laws Taking Effect July 1, From a Cellphone Ban to a New ACT Alternative
On July 1, dozens of Indiana laws from the 2026 legislative session will take effect, bringing significant changes.
Why it matters: Hoosiers will experience immediate impacts, especially with laws like the criminalization of homelessness and drivers licenses for 16-year-olds.
Driving the news:
- Senate Bill 78 bans cellphones in schools for the entire day, requiring students to leave devices at home or in storage. This aims to minimize distractions and enhance focus during school hours.
- House Bill 1200 allows 16-year-olds to obtain driver’s licenses on their birthday, promoting earlier independence and mobility for young Hoosiers.
- Senate Bill 88 introduces the conservative-backed Classic Learning Test as an alternative to the ACT, potentially shaping educational priorities.
- Senate Bill 199 empowers the Indiana Commission for Higher Education to eliminate low-earning degree programs by 2027, potentially reshaping educational offerings.
- Senate Bill 285 criminalizes homelessness as a misdemeanor, with law enforcement using emergency detention if needed. This law is set to have immediate and controversial impacts on vulnerable populations.
- House Bill 1165 protects those who rescue pets from hot cars from liability, while increasing penalties for animal abuse.
These laws reflect a broad spectrum of policy changes that will touch various aspects of life for Indiana residents. (IndyStar)
Inflation Hits 4.1 Percent in May, Highest Level in 3 Years
Annual inflation hit the highest level in over three years last month, with prices rising at a faster pace.
Why it matters: Rising inflation impacts household affordability, a significant concern for U.S. families.
- Prices rose 4.1% over the past year, driven by the conflict in Iran affecting oil and commodity prices.
- The Federal Reserve’s target inflation rate remains at 2%, indicating challenges in price stabilization.
The big picture: The reopening of maritime trade through the Strait of Hormuz has led to a decline in gas prices, offering some relief.
- A recent deal between Trump and Iran has helped ease tensions and stabilize oil markets.
What’s next: Economists predict continued volatility in prices as global tensions persist.
- Monitoring by the Federal Reserve will be crucial to manage inflation and economic growth. (The Hill)
Former Gov. Eric Holcomb to Co-Lead Nationwide AI Workforce Effort
Former Indiana Gov. Eric Holcomb and former U.S. Secretary of Commerce Gina Raimondo have launched a new national organization, Raise US, to help American workers transition to the AI economy.
Why it matters: The rise of artificial intelligence promises significant advancements but also poses the risk of displacing many workers. Raise US aims to mitigate these challenges by training workers with the skills needed for AI-related jobs.
- Raise US has already secured over $500 million in funding, with a goal of $1 billion, to support training initiatives and programs.
The big picture: The organization will initially focus on Arkansas, Connecticut, Maryland, and Utah, working to amplify existing programs and develop new ones. The aim is to find effective solutions and scale them nationally.
- Companies like Amazon, Microsoft, and the OpenAI Foundation are among the founding partners, emphasizing the broad support for this initiative.
What’s next: Raise US plans to establish a Policy Lab to design and test innovative workforce solutions without corporate funding. It will also expand its focus to include more states, potentially including Indiana. (Inside Indiana Business)
Indiana SNAP Payment Error Rate Rises, Increasing Likelihood State Will Be On The Hook for Benefits
Indiana’s error rate for the nation’s largest anti-hunger program, SNAP, increased last year, potentially costing the state over $140 million annually without improvements.
Why it matters: This rise in error rates could significantly impact Indiana’s budget and its ability to fund other essential services.
- More than half a million Hoosiers rely on SNAP for food aid, emphasizing the program’s critical role in community welfare.
The big picture: The 2025 error rate was 9.77%, slightly up from 2024‘s 9.52%, but still below the national average of 10.62%.
- This rate positions Indiana for a hefty penalty, highlighting the need for targeted corrections.
What’s next: Beginning Oct. 1, 2027, states with high error rates must cover a share of the benefits paid out.
- Indiana is working to lower its error rate by adding oversight positions and adjusting eligibility requirements, though challenges remain. (Indiana Capital Chronicle)
Indiana Assessed Value Rises 10% Since 2025
Gross assessed values for properties in Indiana have collectively risen nearly 10% from 2025 to 2026, according to the latest state data.
Why it matters: The increase in assessed values affects homeowners, who have voiced concerns over the rising property taxes, and state leaders are questioning the transparency of the market-based assessment system.
- Residential property values grew by 7.3%, while commercial and industrial properties saw higher increases of 15% and 25.8%, respectively.
The big picture: These changes come as the Department of Local Government Finance updates cost tables, impacting assessments and tax liabilities across the state.
- The residential sector, making up over three-quarters of assessed value, experiences slower growth compared to commercial and industrial sectors.
What they’re saying: State leaders, including Gov. Mike Braun, are considering reforms to improve transparency and stability in the assessment system.
- Residents, like Cheryl Marshall from Fort Wayne, face financial pressures due to increased taxes despite legislative measures intended to provide relief.
What’s next: As lawmakers prepare for the next legislative session, the focus may shift towards stabilizing the tax system and exploring alternatives to property taxes.
- Local governments and school districts may need to adapt to the capped local income tax rates and potential shifts in funding. (Indiana Capital Chronicle)
Supreme Court Rules States Can Accept Mail Ballots After Election Day
The Supreme Court ruled 5-4 that states can accept mail ballots post-election, rejecting the RNC’s challenge.
Why it matters: This decision could impact the balance of power in Congress as it allows mail ballots postmarked by Election Day to be counted in over a dozen states.
- With Justice Barrett and Chief Justice Roberts siding with the liberal justices, the ruling aligns with federal law, which doesn’t dictate ballot receipt dates.
The stakes: For Republicans, who aim to maintain Congressional majorities, this is a setback. President Trump has long opposed post-Election Day ballot counting, claiming it facilitates fraud.
Between the lines: The ruling highlights internal GOP divisions. Mississippi’s GOP Secretary of State defended the state’s law, which aligns with this decision.
- While many states with similar laws are Democrat-led, some, like Mississippi and Texas, are not. (The Hill)
Indiana Fiscal Policy Institute Releases Analysis on State Economic Development Incentives
In early 2026, the Indiana Fiscal Policy Institute (IFPI) began analyzing Indiana Economic Development Corporation (IEDC) Transparency Portal data, revealing significant economic development efforts.
Why it matters: The State of Indiana awarded $9.3 billion in incentives and $1.2 billion in professional services contracts from 2005 to 2025, impacting 6,042 projects across 90 counties.
- This investment showcases Indiana’s commitment to economic growth through tax credits and strategic funding.
The big picture: Most incentives were state tax credits, with the Economic Development for Growing Economy (EDGE) Payroll Tax Credit, Redevelopment Tax Credit, and Hoosier Business Investment Tax Credit being the most utilized.
- State grants and loans increased post-2020, peaking in 2024 due to federal ARPA funding.
What’s next: The challenge remains in measuring the full scope of IEDC’s investment, especially with grants awarded as professional services contracts.
- A deeper analysis of these impacts could provide a clearer picture of Indiana’s economic landscape.
Go deeper: For a comprehensive view, download the full report from the Indiana Fiscal Policy Institute.
Governor Directs State to Reimburse Local Governments for Gas Tax Holiday Revenue
Gov. Mike Braun’s administration will reimburse local governments for any lost gas tax revenues due to the suspension of Indiana’s fuel taxes since May.
Why it matters: This move is designed to alleviate financial strains on local governments while providing relief to Hoosier drivers.
- Hoosiers have saved up to 62.5 cents per gallon due to these tax eliminations.
What’s next: State Budget Director Chad Ranney will request fund transfers from the State Highway Fund on July 21.
- Once approved, local governments will receive distributions within five to seven business days.
The backdrop: Braun declared an energy emergency on April 8, initially suspending the state’s sales tax on gasoline.
- The suspension was extended through July 7, potentially costing the state $104 million and local units $52 million in total. (Indiana Capital Chronicle)
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Important Dates:
Important Dates:
Tuesday, August 11th at 9:00am: State Board of Education at Government Center South or streaming
We will add interim study committee meetings as they are announced.