Introduced Version
HOUSE BILL No. 1326
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 20-51-1-5; IC 21-12-16; IC 21-13;
IC 21-18-6-9.
Synopsis: Student and teaching scholarships. Provides that a student
must be at least three years of age to qualify for a scholarship granting
organization scholarship and removes income eligibility requirements.
(Currently, the student must be at least four years of age to qualify and
be a member of a household with a certain annual income.) Provides
that applicants enrolled in a transition to teaching program after June
30, 2024, may qualify for certain scholarships if the applicant is a
member of a household with an annual income of not more than 400%
of the amount required for the applicant to qualify for the federal free
or reduced price lunch program. (Currently, the annual income
threshold is $100,000 or less.) Permits the commission for higher
education to use the remaining balance allocated to certain teaching
scholarships or in certain teaching scholarship funds to fund additional
specified teaching scholarships.
Effective: July 1, 2025.
Heine, Teshka, Snow
January 13, 2025, read first time and referred to Committee on Education.
2025 IN 1326—LS 7158/DI 152 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1326
A BILL FOR AN ACT to amend the Indiana Code concerning
education.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 20-51-1-5, AS AMENDED BY P.L.162-2024,
2 SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 5. "Eligible student" refers to an individual who:
4 (1) has legal settlement in Indiana;
5 (2) is at least four (4) three (3) years of age and less than
6 twenty-two (22) years of age on October 1 of the applicable
7 school year; and
8 (3) either has been or is currently enrolled in a participating
9 school. and
10 (4) is a member of a household with an annual income of not
11 more than four hundred percent (400%) of the amount required
12 for the individual to qualify for the federal free or reduced price
13 lunch program.
14 SECTION 2. IC 21-12-16-5.5, AS AMENDED BY P.L.44-2024,
15 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16 JULY 1, 2025]: Sec. 5.5. (a) An applicant who is enrolled in a
17 transition to teaching program may qualify for a scholarship under
2025 IN 1326—LS 7158/DI 152 2
1 section 8.5 of this chapter.
2 (b) This subsection applies only to an applicant enrolled in a
3 transition to teaching program after June 30, 2023, and before July 1,
4 2024. To qualify for a scholarship, an applicant must:
5 (1) apply for a scholarship on a form supplied by the commission;
6 (2) possess a baccalaureate degree from an accredited
7 postsecondary four (4) year institution;
8 (3) have enrolled in a transition to teaching program described in
9 IC 20-28-4;
10 (4) agree in writing to:
11 (A) complete a transition to teaching program described in
12 IC 20-28-4 and obtain an initial practitioner license under
13 IC 20-28; and
14 (B) teach for at least five (5) consecutive years in a public
15 school or an eligible school (as defined in IC 20-51-1-4.7) in
16 Indiana after obtaining the initial practitioner license under
17 IC 20-28-4-6; and
18 (5) meet any other criteria established by the commission.
19 (c) This subsection applies only to an applicant that initially enrolls
20 in a transition to teaching program after June 30, 2024. To qualify for
21 a scholarship, an applicant must:
22 (1) apply for a scholarship on a form supplied by the commission;
23 (2) possess a baccalaureate degree from an accredited
24 postsecondary four (4) year institution;
25 (3) have enrolled in a transition to teaching program described in
26 IC 20-28-4;
27 (4) agree in writing to:
28 (A) complete a transition to teaching program described in
29 IC 20-28-4 and obtain an initial practitioner license under
30 IC 20-28; and
31 (B) teach for at least five (5) consecutive years in a public
32 school or an eligible school (as defined in IC 20-51-1-4.7) in
33 Indiana after obtaining the initial practitioner license under
34 IC 20-28-4-6;
35 (5) except as otherwise provided in section 8.5(c) of this chapter,
36 be a member of a household with an annual income of one
37 hundred thousand dollars ($100,000) or less; not more than four
38 hundred percent (400%) of the amount required for the
39 applicant to qualify for the federal free or reduced price lunch
40 program; and
41 (6) meet any other criteria established by the commission.
42 SECTION 3. IC 21-12-16-8.5, AS AMENDED BY P.L.44-2024,
2025 IN 1326—LS 7158/DI 152 3
1 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2 JULY 1, 2025]: Sec. 8.5. (a) Subject to subsection (b), if an applicant
3 meets the requirements under section 5.5 of this chapter, the
4 commission may award a one (1) time nonrenewable scholarship to the
5 applicant in an amount of up to ten thousand dollars ($10,000) for
6 transition to teaching program and initial practitioner licensure costs
7 under IC 20-28-4.
8 (b) The total annual amount of scholarships awarded by the
9 commission under this section may not exceed one million dollars
10 ($1,000,000).
11 (c) Notwithstanding subsection (b), any balance in the next
12 generation Hoosier educators scholarship fund established by section
13 3 of this chapter remaining after the commission has awarded next
14 generation Hoosier educators scholarships for a fiscal year may be used
15 to fund additional transition to teaching scholarships as described in
16 section 5.5 of this chapter. The commission shall give priority for
17 scholarships awarded under this subsection to an applicant who is a
18 member of a household with an annual income of one hundred
19 thousand dollars ($100,000) or less in accordance with not more than
20 the amount described in section 5.5(c)(5) of this chapter. However,
21 if there is a remaining balance in the next generation Hoosier educators
22 scholarship fund established by section 3 of this chapter after awarding
23 scholarships to individuals who meet the income requirement described
24 in section 5.5(c)(5) of this chapter, the commission may award
25 transition to teaching scholarships to applicants who are members of
26 a household with an annual income that exceeds one hundred thousand
27 dollars ($100,000). the amount described in section 5.5(c)(5) of this
28 chapter. Any balance in the fund remaining after the commission
29 has awarded scholarships pursuant to this section may be used by
30 the commission to fund additional teaching scholarships as
31 described in IC 21-18-6-9.
32 SECTION 4. IC 21-13-2-3, AS AMENDED BY P.L.205-2013,
33 SECTION 317, IS AMENDED TO READ AS FOLLOWS
34 [EFFECTIVE JULY 1, 2025]: Sec. 3. (a) Except as provided in
35 subsection (b), money in the fund shall be used to provide annual
36 scholarships to individuals who qualify for a scholarship under section
37 4 of this chapter.
38 (b) Any balance in the fund remaining after the commission has
39 awarded William A. Crawford minority teacher scholarships may
40 be used by the commission to fund additional teaching scholarships
41 as described in IC 21-18-6-9.
42 SECTION 5. IC 21-13-7-5 IS ADDED TO THE INDIANA CODE
2025 IN 1326—LS 7158/DI 152 4
1 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
2 1, 2025]: Sec. 5. Any balance in the fund remaining after the
3 commission has awarded scholarships under section 1 of this
4 chapter may be used by the commission to fund additional teaching
5 scholarships as described in IC 21-18-6-9.
6 SECTION 6. IC 21-13-8-5 IS ADDED TO THE INDIANA CODE
7 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
8 1, 2025]: Sec. 5. Any balance in the fund remaining after the
9 commission has awarded Earline S. Rogers student teaching
10 scholarships may be used by the commission to fund additional
11 teaching scholarships as described in IC 21-18-6-9.
12 SECTION 7. IC 21-18-6-9 IS ADDED TO THE INDIANA CODE
13 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
14 1, 2025]: Sec. 9. (a) This section applies to the following
15 scholarships:
16 (1) IC 21-12-16.
17 (2) IC 21-13-2.
18 (3) IC 21-13-7.
19 (4) IC 21-13-8.
20 (b) Any balance in a scholarship fund or allocated to a
21 scholarship identified in subsection (a) remaining after the
22 commission has awarded each scholarship may be used to fund
23 additional teaching scholarships described in subsection (a).
2025 IN 1326—LS 7158/DI 152