Schools received a modest increase in the state budget. But Marion County education leaders are still trying to figure out what sweeping changes to local property taxes will mean.

Lawmakers celebrated after they said they protected K-12 education funding above all else as they faced a $2 billion budget shortfall. But the Indiana School for the Deaf saw its funding slashed by 5 percent.

Grant funding that supported bonuses for effective teachers at MSD Perry Township schools, as well as literacy positions at the district, is at risk due to the Trump administration’s cuts to federal funding seen to support diversity, equity, and inclusion programs.

New laws passed by Indiana lawmakers will reshape school funding, accountability, literacy rules and more starting July 1.

Carmel Clay Schools will receive $132.1 million in 2026 and $134.6 million in 2027 in state tuition support.

School choice supporters praised the legislation as a massive and long-overdue policy shift, as it will boost funding for students who attend public charter schools.

School districts stand to lose more than $700 million under the latest plan to cut property taxes for Indiana homeowners.

The updated Senate Bill 1 would require local school districts to share property tax levies and voter-approved referendums with charter schools beginning in 2028.

Young people in Indianapolis have sought opportunities to speak out at Statehouse hearings and local school board meetings during the past few months.

Indiana schools, colleges and universities are being told to consult with their lawyers and end race-based programs or risk losing federal funding.