Indiana Gov. Mike Braun delivered his 2025 State of the State address at the Indiana State House Jan. 29, according to a livestream from the Indiana General Assembly 2025 Session.
Here are some key points he identified to lawmakers during his speech and his policy proposals:
The first topic he discussed was the need to keep reducing the income tax burden on Hoosiers, specifically for senior citizens, farmers and young families being priced out of homes. Braun said this was “shameful and not sustainable,” as tax bills are rising and wages aren’t keeping up.
He proposed three steps toward a solution: cutting property taxes for Hoosier families, capping the annual tax increase to protect homeowners, and reforming the system through transparency.
To address this, Braun expressed support for Indiana Sen. Travis Holdman’s Freedom and the state’s Opportunity Tax Relief Bill.
Braun also suggested putting seniors on a fixed income to give them more “breathing room” with their tax reliefs on their retirement incomes and creating a tax-advantaged Farm Savings Account to help stabilize farmers’ incomes when they’re experiencing a bad crop year.
He wants to address the “aging” agricultural workforce with a tax credit for retiring farmers passing their farms on to family members.
Braun then pointed out that he directed his agency leaders to “find big cuts” in their departments. He signed a directive to cut at least a quarter of government regulations.
Next, Braun touched on diversity, equity, and inclusion (DEI) and described DEI mandates as leading to “division and inefficiency.” Instead, he advocated for the transition of DEI into merit, excellence and innovation, which “puts merit at the forefront.”
Moving on from this, Braun introduced his new cabinet structure, which is “designed to run like a business.” This new structure involves a reorganization of the executive branch under eight offices, each led by secretaries who report directly to him. Braun did this in an effort, he said, to add “a new level of accountability.”
Braun then introduced his Freedom and Opportunity Public Safety agenda. His priorities include improving police recruitment and retention for Indiana State Police with competitive salaries, cost of living adjustments and more.
He emphasized how Sen. Aaron Freeman’s Freedom and Opportunity public safety bill was passed out of committee to increase penalties on fentanyl and meth dealers, raise the price for targeting police and add mandatory minimum bail for repeat violent offenders.
When it came to immigration, Braun said he wanted to do whatever it took to secure the southern border, as he believed that Indiana should not be a “safe haven for illegal immigration.”
Concerning the economy, Braun wants to enforce a new approach with the Hoosier workforce investment tax credit, which would give people a substantial tax incentive to invest in employee skills, training and development.
He announced his administration is restructuring the Indiana Economic Development Corporation to “spread the benefits of economic development programs across the state.”
He also wants to create an Office of Entrepreneurship and Innovation, focusing on “Main Street” entrepreneurs backed by their family, friends and communities, not just businesses backed by venture capital.
Braun reiterated the prevalent issue of healthcare premiums and drug prices going up. He wants to pass the Freedom and Opportunity Healthcare plan “to lower prices, improve access and promote innovation in the industry.”
Braun said, “When providers compete, prices drop.” To address this, he wants directed agencies to address the “misaligned incentives” causing high drug prices, like pharmacy benefit managers.
He also wants to lead comprehensive audits to find “waste and abuse” in state healthcare spending.
He was advocating for Rep. Brad Barrett’s House Bill 1003, which encourages price transparency and addresses anti-competitive practices driving up prices. It would also put an end to “surprise billing.”
Another related bill Braun advocated for was Senate Bill 3, which would require third-party administrators for health insurance plans to have a “fiduciary duty” to act in the best interest of the plan sponsors.
Braun established support for Rep. Martin Carbaugh’s House Bill 1004, requiring nonprofit hospitals to act like nonprofits.
On the topic of education, Braun highlighted how Indiana recently ranked sixth in the nation in reading in the Nation Report Card, which he said is a “strong foundation to build on.”
Braun said everything he does for education is based on simple principles: parents being in charge of their own kids’ education and kids having universal school choice.
He also wants to increase teacher base pay to attract and keep teachers. To achieve this, he wants to pass Sen. Linda Rogers’ Senate Bill 146, which would raise the minimum salary for public school teachers by $5,000, ensuring 65% of tuition support goes to paying teachers. He also wants to pass Rep. Steve Bartels’ House Bill 1637, establishing an Office of School Safety.
Braun ended his address by stating, “Will we treat this moment as a plateau or as a foundation to build something truly exceptional?”
Contact Meghan Braddy via email at meghan.braddy@bsu.edu or on X @meghan_braddy.
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