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House advances state budget bill as lawmakers face threat of federal funding cuts

By Brandon Smith

Posted February 20, 2025

The Indiana House chamber, as seen from its rear balcony.

Under Indiana's Constitution, the state budget bill must begin in the House chamber. (Brandon Smith/IPB News)

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Lawmakers from both parties are thinking about huge potential cuts in federal funding as they write this year’s state budget.

The House advanced the two-year, $46 billion spending plan Thursday, HB 1001, as the first half of the legislation session came to a close.

The budget crafted by House Republicans increases K-12 education funding by 2 percent each year; cuts most state agencies by 5 percent; reduces local public health funding; and does not eliminate waitlists for care under Medicaid.

Rep. Jack Jordan (R-Bremen) said lawmakers know the state may face federal funding cuts — something he supports.

“And that’s going to result in us at the fiscal level having probably to make some tough decisions,” Jordan said. “But we’re in a really good position because this budget doesn’t overextend.”

READ MORE: Republican proposals to cut Medicaid could be politically fraught

Join the conversation and sign up for our weekly text group: the Indiana Two-Way. Your comments and questions help us find the answers you need on statewide issues, including our project Civically, Indiana and our 2025 bill tracker.

But Rep. Cherrish Pryor (D-Indianapolis) said people are hurting now and the House GOP budget doesn’t do nearly enough.

“And based on what we’ve seen so far, I do know that the state is going to have to step up to help Hoosiers,” Pryor said.

The bill now goes to the Senate.

Brandon is our Statehouse bureau chief. Contact him at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.

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