New Indiana Laws Take Effect: Rep. Baird Highlights Student Support, Tax Cuts, and DEI Changes

As of July 1, several new laws passed during Indiana’s 2025 legislative session are officially in effect. State Rep. Beau Baird is highlighting several measures he says will have a direct impact on Hoosiers, including expanded opportunities for students in agricultural programs, income and property tax relief, and new restrictions on state-level diversity, equity, and inclusion (DEI) policies.

One of the newly enacted laws is House Enrolled Act 1660, authored by Baird, which supports students who participate in 4-H and FFA. Under this law, Indiana students in good academic standing will be eligible to receive up to six excused absences per school year to attend official events associated with 4-H and FFA programs. These organizations are known for providing students with opportunities that develop leadership, responsibility, and real-world career skills.

“Indiana has a long and rich agricultural history, and this new law allows Hoosier students to fully engage in these programs while maintaining good academic standing,” Baird said. “Supporting students who are interested in agriculture and farming will help continue our state’s success in this crucial industry.”

The law aims to ensure that students who are gaining practical experience and pursuing interests in agriculture are not penalized academically for attending events that contribute to their growth and future career pathways. The six-day excused absence allowance is structured to support participation while maintaining educational standards.

Another focus for lawmakers during the 2025 session was tax relief. Through House Enrolled Act 1001, the state is moving forward with scheduled income tax reductions. These cuts are set to take place over the next two years and are expected to bring Indiana’s income tax rate to one of the lowest in the country. In addition, a separate law provides targeted property tax relief to homeowners. Together, these tax changes are projected to save Hoosiers more than $1 billion over a two-year span.

Baird said this is part of a broader effort to support working families and maintain Indiana’s reputation for strong fiscal management. “To continue Indiana’s track record of cutting taxes,” he said, “we passed legislation that delivers meaningful savings for hardworking Hoosiers.”

These tax changes are supported by a balanced state budget that maintains Indiana’s AAA credit rating while investing in key priorities. According to Baird, the new budget delivers the highest level of funding ever allocated for K-12 education in the state and expands school choice to all families beginning in the next academic year. The budget also includes increased funding for public safety initiatives and housing access to meet the needs of growing communities across the state.

Baird noted that lawmakers also passed a new law addressing how state agencies, educational institutions, and licensing boards implement DEI policies. Under this law, these entities are prohibited from using diversity, equity, and inclusion frameworks that factor in personal characteristics such as race or gender when making decisions related to hiring, admissions, or professional licensure. Instead, decisions must be based solely on merit, qualifications, and skills.

While Indiana Democrats have supported increased education funding and tax relief measures in the past, many have expressed concern that the new restrictions on DEI policies could undermine efforts to promote inclusivity and equal opportunity in public institutions.

“All Hoosiers deserve to be treated equally under the law,” Baird said. “State decisions on employment, enrollment, and licensing should not be influenced by personal characteristics but rather reflect a fair, merit-based system.”

The new law responds to growing concerns that DEI-based practices could create discriminatory outcomes by prioritizing identity factors over individual achievement. Supporters argue that the policy promotes fairness and transparency in state processes.

These new laws are part of a wider set of legislative actions completed before the 2025 session adjourned in April. Baird, who represents House District 44—which includes all of Putnam County and part of Montgomery County—emphasized that each of the new laws addresses real-world issues facing Indiana residents, whether it be academic opportunity, economic relief, or equality under the law.

The income and property tax relief efforts reflect the state’s broader budgetary approach, which includes maintaining a structurally balanced budget, safeguarding reserves, and ensuring long-term financial stability. The budget’s emphasis on education and public safety also aligns with priorities cited by many legislators during the session.

The legislation supporting 4-H and FFA participants also underscores the state’s ongoing commitment to agriculture as both a cultural tradition and a major economic driver. By allowing excused absences for events tied to these programs, Indiana is reinforcing its investment in the next generation of agricultural professionals.

Meanwhile, the move to restrict DEI-based decision-making within public institutions is one of several actions taken across the country as debates continue over how best to ensure equity and opportunity in public policy. In Indiana, the newly enacted law sets clear boundaries for how these considerations are handled within the scope of state operations.

In total, the laws taking effect this July represent a continuation of Indiana’s legislative priorities: supporting youth involvement in key sectors, easing financial pressures on residents, and codifying principles of fairness and accountability in state governance.