NIKI KELLY, INDIANA CHRONICLE
Just like going to class, there is a lot to glean from watching state government in action. And 2025 was full of lessons.
As we wrap up the year, here are the top five things I learned:
DATA CENTERS
Data centers aren’t going away — and neither is the sentiment of Hoosiers against them. As many as 30 massive data centers are in the works in the state. Lawmakers and state officials seem annoyed that citizens keep fighting them — a form of not-in-my-backyard over and over again. But that’s because citizens don’t see the advantages. There are fair questions about companies using energy and water resources, and the benefits aren’t clear. There is an initial burst of investment and construction jobs, but the full-time employment is often low. Property tax abatements mean local schools and government aren’t getting new revenue. Add to that a massive state sales tax exemption worth hundreds of millions, and it’s legitimately unclear what Hoosiers are getting out of new data centers.
TRUMP
Trump’s popularity has a limit. While Hoosier Republicans gave him an 82% favorable rating in a recent poll, Senate Republicans defeated a move to redraw Indiana’s congressional districts for purely partisan reasons Despite enormous pressure over more than four months, senators stood on their principles and refused to yield to political primary threats and intimidation tactics like swatting. I couldn’t have imagined the president of the United States calling out senators by name — but that’s where we were. And now, everyone will be watching to see if national influencers really plow money into state Senate seats to get retribution.
EDUCATION MATTERS
When education stakeholders focus — with resources, data and effort — it works. Indiana saw big gains in third grade reading proficiency thanks to a literacy effort backed by state and private philanthropy dollars. While some students will be repeating third grade, the additional remediation that lawmakers and state officials made available means it was far less than originally feared. The state’s chronic absenteeism rate is also improving after hitting a “crisis” level. That led to a more intensive law targeting absences. One area that needs similar focus is Indiana’s college-going rate, which continues to disappoint.
HURTING THE POOR
Poor people are the target of cuts in state government. Gov. Mike Braun’s administration is trying to reign in Medicaid enrollment — and therefore expenses — by imposing additional verification checks, work requirements and more. Similarly, those on the Supplemental Nutrition Assistance Program will no longer be able to buy a candy bar or a Dr. Pepper. But perhaps the biggest impact is coming from cuts to childcare vouchers. With fewer vouchersand provider rates slashed, day care centers are closing. And that means fewer people in the workforce. I can’t help but note that at the same time these cuts are happening, lawmakers removed limitations for state-paid private school vouchers.
IEDC
The Indiana Economic Development Corporation doesn’t have a blank check anymore. During former Gov. Eric Holcomb’s tenure, the spending by the IEDC was legit insane. And legislators seemed hesitant to question or block any of it. An audit of the quasi-governmental agency and related entities turned up lots of conflicts and lapses in process. Lawmakers slashed the IEDC’s budget. How they spend their money is also still up for debate. And some local officials say the entity lacks a clear vision. With a new board and focus on smaller businesses outside of Indianapolis, it remains to be seen which version of the agency is better for Indiana.
RISING COSTS
I was going to stop at five, but I can’t ignore the growth in utility and health care costs. The latter have grown for decades, and nothing lawmakers do seem to make a dent. And the General Assembly has really tried — putting more work on the health care side than many other issues. But because so much health care policy is controlled at the federal level, state policies can only have so much impact. But the rising energy prices are startling and new. Utility rates have a myriad of culprits behind them, and 2026 will be focused on dealing with those. Everyone has some blame on this one: utility companies living large on massive profits; lawmakers allowing companies to raise rates for many expenses; utility regulators approving hikes that are simply not justified or affordable; and the continued fight over renewables vs. coal.
