Indiana House Democrats Slam GOP-Backed Budget as Blow to Public Services, Working Families; GOP Celebrates Budget

Written from press releases

April 25, 2025

INDIANAPOLIS — Indiana House Democrats sharply criticized the state’s newly passed budget Friday, describing it as a plan that prioritizes “handouts for the wealthy” at the expense of public schools, healthcare, and working families.

The $50 billion, two-year budget, approved overnight on the final day of the legislative session, now heads to Republican Gov. Mike Braun’s desk. Democrats, who are the minority party in Indiana’s GOP-controlled legislature, uniformly opposed House Bill 1001, citing deep cuts to public services and what they called misplaced priorities amid a weakening economy.

“This year’s Republican budget is a bad deal for working people, plain and simple,” said House Democratic Leader Phil GiaQuinta (D-Fort Wayne). “It grows private school vouchers and charters while traditional public schools are left struggling. It cuts public health funding during a time of great need and eliminates popular programs like Dolly Parton’s Imagination Library and PBS funding.”

House Democrats outlined a range of concerns with the budget:

• Public education: Traditional public school funding will increase by only 3.3% in 2026 and 1.6% in 2027—below inflation rates. Meanwhile, funding for private school vouchers will increase by 10.1% in 2026 and 23.4% in 2027, becoming universal by 2027.
• Early childhood education: Eligibility for On My Way Pre-K will be tightened, reducing access for working families.
• Higher education: Cuts to the Commission for Higher Education will reduce student scholarships and overall support for state colleges and universities.
• Public health: Funding for local health programs under Health First Indiana will be reduced by $145 million compared to the previous biennium.
• Governance changes: The Indiana University Board of Trustees will shift to full gubernatorial control, ending more than a century of alumni-elected representation.
• Public services: The state defunded Dolly Parton’s Imagination Library program and eliminated funding for public broadcasting.

Rep. Mike Andrade (D-Munster) warned that the cuts to education and public health would have lasting consequences.

“If we truly want to build a strong economy and retain top talent, we must start by supporting our schools and institutions from the ground up,” Andrade said. “This budget fails our youngest learners, our colleges, and our healthcare system.”

Other Democratic lawmakers voiced similar criticisms. Rep. Pat Boy (D-Michigan City) called the education funding cuts “irreparable damage,” and added, “The budget raises the tax on cigarette packs to $2.995 per-pack, which will generate $800 million over the next two years. Instead of ensuring that this funding goes towards making up for the cut funding in our education systems, much of this funding is going to a general fund with no guarantee on how it will be used.”

Rep. Sue Errington (D-Muncie) criticized new restrictions on tenured faculty at state universities, warning of threats to academic freedom.

Rep. Maureen Bauer (D-South Bend) said the health cuts were particularly dangerous for vulnerable populations, including mothers, seniors, and rural Hoosiers.

“Budgets are moral documents, and this one reflects the state’s choice for austerity over accessibility, bureaucracy over community care,” Bauer said.

Rep. Robin Shackleford (D-Indianapolis) called the public health cuts “dangerous and irresponsible,” noting that Indiana already ranks poorly for maternal mortality and infant health.

Meanwhile, State Rep. Alex Burton (D-Evansville) lamented the budget’s lack of investment in affordable housing and immigration support, calling the approach “short-sighted” during a time of economic uncertainty.

State Democratic Party leaders also weighed in, framing the session as a victory for corporate interests over everyday Hoosiers.

“Indiana Republicans have enough votes to do anything they want, and what they chose was cutting healthcare, slashing education, and rewarding wealthy landowners,” said Indiana Democratic Party Chair Karen Tallian. “Meanwhile, Democrats fought for real solutions—lowering healthcare costs, fully funding public schools, and supporting working families.”

Democrats emphasized that despite the setbacks, they passed limited bipartisan measures, including a ban on taxpayer-funded luxury vehicle purchases by officials and new worker protections for parents attending their children’s school meetings.

Meanwhile, the GOP celebrated the bill, and the Indiana Capital Chronicle reported, “This budget does so much. It continues to invest in K-12 education in every way. Even with a surprise shortfall in revenue, we made sure we protected K-12 and we did that,” said Huston, R-Fishers. “… House Bill 1001 builds on … what’s taking place in Indiana. It builds on that success. When we see a challenge — and when we get a challenge — we meet it and we excel through it.” 

The Republicans said the bill will help Hoosiers live within their means, as there is a 2 billion revenue shortfall forecast.

Newest forecast data projects $2B less in revenue

Gov. Braun is expected to sign the budget into law.

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