Indiana would pause new charter school approvals for five years

Charter school approvers could not grant charters to open new schools in Indiana. The state charter board, state educational institutions, and governing boards of nonprofit colleges or universities offering four-year programs that award bachelor's or higher degrees also could not renew existing charters. The ban on charters for new schools would run from July 1, 2026, through June 30, 2031; the renewal limit would begin July 1, 2026.

Charter schools with fewer than 100 students at their latest spring count would not qualify for specified public funding. The funding limit covers state money and specified local property tax money for a charter school with fewer than 100 students at its latest spring count. Affected students could choose to transfer, and the public school district where the charter school is located must accept their requests. The funding limit would apply after the spring count showing fewer than 100 students.

Covered charter schools would have to provide transportation to eligible students. Students must live in the public school district where the charter school building is located. The requirement applies only if the school receives the specified property tax money. Online charter schools and adult high schools are exempt. This would apply to charter schools started or renewed after June 30, 2026.

County auditors would direct property tax money for district operations to school districts. This covers property taxes collected for school district operations and certain voter-approved operating taxes. Districts could choose to share voter-approved operating tax money with charter schools other than online charter schools and adult high schools. Certain earlier referendums in Lake, Marion, St. Joseph, and Vanderburgh counties could still require sharing during their terms. The direction for district operations taxes would apply to money received after June 30, 2026.

Charter schools would follow listed state school rules and evaluate certified employees each year. The listed rules cover charter schools; the yearly evaluation plan covers their certified employees. Schools would also have to adopt policies to help prevent child suicide. Schools would begin using their yearly staff evaluation plans in the 2026–27 school year.