Indiana drops all income limits on school vouchers

Indiana opens vouchers to every family

Indiana will let every family use state money for private school tuition, no matter how much they earn. Gov. Mike Braun signed the state budget bill, House Bill 1001, on May 6, 2025.

The law removes the last income cap from Indiana’s Choice Scholarship Program starting July 1, 2026. That makes Indiana the 17th state to pass universal private school choice.

The move covers students in grades K-12 who live in the state.

Vouchers cover most of a student’s tuition

The program sends state money straight to participating private schools to help cover tuition. Vouchers can cover up to 90% of the state’s per-student funding amount, based on the student’s home school district.

To qualify under the new rules, students just need to be Indiana residents in grades K-12.

Private schools that take part must get approval from the Indiana Department of Education and teach core subjects, along with the U.S. and Indiana Constitutions.

Program has grown fast since 2011

Indiana launched the Choice Scholarship Program back in 2011, making it one of the oldest voucher programs in the country. It has grown every year since.

During the 2024-25 school year, more than 76,000 students used vouchers at a record 373 private schools. The state spent about $497 million on tuition grants that year, up about 13% from the year before.

A 2023 law had already opened the program to roughly 97% of Indiana families.

Budget shortfall delayed the expansion

The expansion almost didn’t happen on this timeline.

A new state revenue forecast showed a $2 billion gap in expected revenue across the two-year budget. That forced a 5% cut across state agencies, with deeper cuts to public health and some education programs.

Senate Republicans had even left universal vouchers out of their version of the budget because of cost concerns. The final deal pushed the start date to year two, beginning July 1, 2026.

Expansion adds hundreds of millions in costs

The universal expansion will cost the state more than $190 million over the two-year budget. Once fully in place, total voucher spending could reach about $674 million.

That is a big number, but K-12 education already takes up about 47% of Indiana’s $46 billion biennial budget. Public schools will still get a 2% funding bump each year under the new budget.

Supporters say both systems can grow at the same time.

Backers say families deserve more options

Gov. Braun said universal vouchers make sure “every Hoosier family has the freedom to choose the school that fits best.” House Speaker Todd Huston said the budget keeps supporting K-12 education across the board.

The Institute for Quality Education said the law gives parents and students the power to make their own choices. The House passed HB 1001 by a vote of 66-27, and the Senate approved it 39-11.

Critics say wealthy families benefit most

Not everyone is on board. The Indiana State Teachers Association said the expansion mainly helps the wealthiest families while public schools still serve the vast majority of students.

Rep. Andrea Hunley pointed out that families earning well over $400,000 a year will now get state help with private school tuition. Rep. Carey Hamilton called it a choice to put wealthy families first.

Critics also note that private schools don’t have to accept all students or serve all disabilities the way public schools do.

Indiana joins a wave of states

Indiana is far from alone. It became the fifth state to pass a universal school choice program in 2025, and the 17th overall.

Every state that enacted universal choice this year had a Republican-controlled legislature and governor. Other states with similar programs include Arizona, West Virginia, Utah, and Oklahoma.

The trend shows no signs of slowing down, with more states weighing similar proposals.

New law requires crisis-trained staff in schools

A separate law, House Bill 1285, tackles a very different issue.

Starting Jan. 1, 2026, every school building used for classroom instruction must have at least one staff member trained in nonviolent crisis intervention.

That person needs to be on site during school hours and ready to help de-escalate situations.

Rep. Becky Cash, who wrote the bill, said the goal is to keep children from ending up in seclusion or physical restraint.

Trained staff respond to restraint situations

The trained employee steps in when situations involve chemical, mechanical, or physical restraint, as well as seclusion or time-out.

The Indiana Department of Education reviews crisis intervention training programs and recommends them to school districts across the state.

The bill passed the House 90-0 and the Senate 46-1, making it one of the most bipartisan measures of the session. That level of support is rare on any education bill.

Bill also protects student belongings and parent rights

HB 1285 goes beyond crisis training. Schools can no longer throw away a student’s belongings without giving parents a chance to pick them up if the student has died, transferred, or withdrawn.

Parents also now have the right to record meetings about their child’s individualized education program.

A provision requiring cameras in special education classrooms didn’t make the final bill because of cost, but Rep. Cash plans to bring it back in the 2026 session.

Current income limits apply through June 2026

For the 2025-26 school year, current income limits still apply. The universal provision doesn’t kick in until July 1, 2026.

Families who want to use vouchers next year will still need to fill out a Choice Scholarship application through their chosen private school.

Applications for the 2026-27 school year should open in March 2026.

Schools that already have crisis-trained staff on site should be in line with HB 1285 as of January 2026.

This article was created with AI assistance and human editing.

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