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The law increases the maximum amount of a voucher, and guarantees eligibility to siblings of voucher students.
But the expansion isn’t nearly as broad as many, including Pence, wanted.
Legislators plan to vote in early evening on a new state budget which calls for a five-percent income tax cut, phased in over the next four years.
Both budget proposals increase school funding by three-percent over the next two years, and accelerate the planned phaseout of the inheritance tax.
With less than three weeks left in the legislative session, some of the most significant bills were advanced by the House or Senate this week.
Supporters of Indiana's fledgling school voucher initiative say expansion needs to not just fill slots but to create new seats at the state's private schools.
The bill would loosen the income requirements for families seeking vouchers to send their children to private schools.
Indiana Superintendent of Public Instruction Tony Bennett testified on a number of ideas, including the new school funding formula.
The controversial school vouchers bill proposal passed committee by an eight to ten vote Wednesday.
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