Indiana Legislature Wraps Up 2025 Session
Jds 4-26-2025
Indiana lawmakers wrapped up the 2025 session after midnight Friday, approving a two-year state budget worth $45 billion.
The budget remains about the same size as the last one, even though the state now expects to bring in $2.4 billion less over the next two years.
To help make up the difference, lawmakers more than doubled the cigarette tax, raising it to $2 per pack.
They also increased taxes on cigars, vape cartridges, and other tobacco products — a move expected to bring in around $800 million and reduce smoking.
Lawmakers also made spending cuts.
Public health, colleges, public broadcasting, and the Indiana Economic Development Corporation will all get less money.
Public health funding drops from $150 million in 2025 to $40 million a year after that.
Colleges lose about 5% of their funding.
Some areas were protected from cuts.
K-12 education will still get a 2% funding increase each year.
Medicaid, child services, the Department of Correction, and teacher pensions will continue to be fully funded.
Lawmakers also kept the plan to expand school vouchers in 2026.
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