Holcomb Signs Wetlands Deregulation Amid Southern Indiana Flood Fears

On April 29, 2026, Governor Eric Holcomb signed Senate Enrolled Act 389 into law, eliminating state regulations on Class I wetlands—low-quality areas previously disturbed by human activity or offering minimal wildlife habitat. The bill repeals a 2003 law requiring permits from the Indiana Department of Environmental Management (IDEM) for development impacting these wetlands and halts ongoing enforcement against violators. Retroactive to Jan. 1, it passed the Republican-dominated legislature on April 14 despite bipartisan opposition from hundreds of environmental groups, hunters and businesses.

Most provisions activate July 1, creating a task force to study wetlands while deregulating impacts on Class I sites, which no longer require compensatory mitigation. Southern Indiana's Ohio River communities, including Clark and Floyd counties, face heightened flood risks, as outlined in the 2024 Indiana State Hazard Mitigation Plan, which identifies riverine flooding as a top threat. Recent floods have battered levees and drainage systems in places like Jeffersonville, where weakened wetlands historically absorb excess water.

Criticism poured in immediately, with a Carmel fifth-grader joining businesses and wildlife advocates in decrying the rollback. Opponents argue deregulation invites development in flood-prone zones, potentially exacerbating disasters along the Ohio River, which borders southern Indiana cities. The bill marks Holcomb's first major environmental signing of 2026, shifting focus from mitigation funding to streamlined development amid ongoing wetland losses statewide.