Monday, January 5, 2026
Indiana is receiving national attention after The Washington Post named Indiana its inaugural "State of the Year," highlighting policy decisions that have focused on fiscal responsibility, accountability and long-term results. This recognition comes from Indiana's willingness to take on difficult issues and pursue meaningful reforms that directly impact Hoosiers across the state.
The editorial pointed to Indiana's work on property tax reform and strong financial stewardship. Through the passage of Senate Enrolled Act 1, about two-thirds of Hoosier homeowners are expected to pay less in property taxes in 2026 than they did in 2025.
Indiana's education reforms were also recognized. Senate Republicans were proud to support the passage of a new state budget that reduced overall state spending while still increasing funding for education by 2% each year and expanding parental choice so Hoosier families have more options when it comes to choosing the school that best fits their child's needs. We also passed a law that removed zoning barriers that made it difficult to start charter schools, helping expand educational opportunities and improve the state's education system across the board.
Indiana is also receiving national recognition for how we are reforming Medicaid. A recent Wall Street Journal editorial highlighted Indiana as an example of how states can take steps to control Medicaid costs while protecting access to care. Over the past four years, Medicaid spending in Indiana increased by $5 billion, putting pressure on the state budget and making it harder to fund other priorities like K-12 education.
To address this growth in spending, Senate Republicans passed Senate Enrolled Act 2 to help find and eliminate waste, fraud and abuse within the Medicaid program. The law also updated the Healthy Indiana Plan by requiring able-bodied, working-age adults to work or volunteer at least 20 hours per week.
These Medicaid reforms are already producing results and the projected growth in Medicaid spending is now much lower than previously expected. Indiana expects to spend $445 million less on Medicaid than what was allocated in the state budget for the next two years. Medicaid enrollment is now 12% lower than what we projected when the state budget was passed in April 2025. This is primarily due to better eligibility checks.
As the Indiana General Assembly prepares to reconvene for the 2026 legislative session, Senate Republicans remain focused on continuing this work. This includes building on reforms that save Hoosier taxpayers money, holding the government accountable, supporting families and ensuring Indiana remains a national leader in effective state policy.
