Indiana legislative Democrats on Monday, Jan. 5 proposed a series of measures aimed at easing the financial pressures on families facing rising costs for utilities, housing, medical care, and child care.
House and Senate Democrats called for repealing the state’s 7% sales tax on residential utility bills and increasing funding for state child care programs. Leaders framed their push as a response to a “cost-of-living crisis” affecting Hoosiers.
House Minority Leader Phil GiaQuinta (D-Fort Wayne) criticized current policies, saying, “Hoosiers are getting nickeled and dimed to death,” and urged lawmakers not to place the burden of household budgets on individual families.
Democrats also targeted the Braun administration’s freeze on enrolling new children in the taxpayer-funded child care program until at least 2027, as well as recent cuts to day care center payment rates. They argue that Indiana could end the waitlist of approximately 30,000 children and support parents joining the workforce, citing state cash reserves projected to reach nearly $5 billion by mid-2027.
Senate Minority Leader Shelli Yoder (D-Bloomington) emphasized that the state has the resources to provide relief, particularly through child care and pre-K investments. Rep. Carey Hamilton (D-Indianapolis) warned that underfunded day care centers risk closure, worsening the state’s child care shortage.
The Democratic proposals come as Republicans weigh aligning state tax law with federal tax cuts, which could total over $900 million in tax breaks over the next two years. Democrats argue that state resources should prioritize direct support for families rather than broad tax reductions.