The committee changed the bill so students are still required to attend one year of public school before being eligible for a voucher.
Senate Appropriates Chair Luke Kenley says the expansion makes it harder for public schools to compete.
Legislators already differ on whether the bill amounts to an expansion of gambling.
Republican leaders say uncertainty about the financial burden placed on the state by Medicaid expansion likely eliminates that option.
The bill directs the state to continue negotiations with the federal government, seeking a way to compromise on Medicaid expansion.
Rep. Ed DeLaney's proposal would have expanded Medicaid if the federal government did not approve the state's request to use the Healthy Indiana Plan.
The budget proposed Friday does not include money for Medicaid expansion in Indiana.
The proposed bill would create a state-run healthcare exchange, and expand the state’s Medicaid program to add as many as 400,000 Hoosiers.
David Orentlicher says Indiana should expand Medicaid because the federal government would bear most of the cost.
Cummins says it is taking precautions this year, but expects to fulfill its promises to hire 290 worker in Seymour by 2015.