Indiana Goes Universal: Every Family Eligible for School Vouchers in 2026

In a late-night compromise during the 2025 legislative session, the Indiana General Assembly passed House Bill 1001, a biennial $45 billion budget that removes income eligibility from the Choice Scholarship Program, effective for the 2026-27 school year. Gov. Mike Braun (R) signed the measure on May 6, 2025, positioning Indiana as the 17th state—and fifth in 2025—to enact universal private school choice. The House approved HB 1001 66-27, with 65 Republicans and one Democrat in favor; the Senate passed it 39-11, backed by 38 Republicans and one Democrat. Nearly half the budget funds K-12 education, including a 2% increase in tuition support that boosts voucher values.

The Choice Scholarship Program, launched in 2011, now awards four payments per year—up from two—starting July 1, 2025, covering tuition or 90% of a student's local public school allocation, whichever is less, paid directly to participating private schools. Private schools receiving funds retain autonomy from many state regulations but must teach core subjects, the U.S. Constitution and Indiana Constitution. In 2023, eligibility expanded to 97% of families; HB 1001 eliminates the cap entirely, allowing even households earning over $230,000—top 3% in Indiana, where median income is $70,051—to access vouchers.

Democrats like Sens. Fady Qaddoura and Greg Porter raised alarms, arguing the expansion subsidizes wealthy families already affording private tuition while public schools face strains. The budget slightly cuts funding for Education Scholarship Accounts for students with disabilities and sets Career Scholarship Accounts at $9.5 million annually, below House proposals. Supporters, including Braun, hail it as empowering parents in cities like Indianapolis and rural counties alike.