Indiana Governor Mike Braun Signs SB 199 into Law
In a move aligning with a growing national emphasis on return on investment (ROI) in higher education, Indiana Governor Mike Braun signed Senate Bill 199 (SB 199) into law on March 5, 2026. This legislation mandates that public colleges and universities in the state identify and potentially eliminate academic programs producing graduates with median earnings below those of high school diploma holders. The bill, which passed the Indiana General Assembly with bipartisan support but sparked debate over its inclusion in a larger education package, takes effect July 1, 2026. It builds on prior state efforts to streamline offerings amid concerns about student debt and workforce alignment.
Public institutions, including the Indiana University (IU) system, Purdue University campuses, Ball State University, and Ivy Tech Community College, now face rigorous scrutiny from the Indiana Commission for Higher Education (CHE). This reform reflects broader pressures on higher education to demonstrate tangible economic outcomes, particularly as federal accountability measures loom.
Path to Passage: A Quiet Addition to Broader Reforms
SB 199 originated in January 2026 as a measure addressing various education matters, including interscholastic athletics and accreditation. However, a key provision targeting 'low-earning outcome programs' was added during committee amendments, catching some lawmakers off guard. It cleared the Senate 34-14 and the House 62-32 before heading to the governor's desk. Republican Sen. Jean Leising noted on the Senate floor, 'I didn’t realize this language was in this bill until this morning,' highlighting how the clause flew under the radar amid discussions on youth social media restrictions.
Governor Braun, a vocal advocate for technical training over traditional degrees, signed the bill without public comment on this section but consistent with his prior support for cutting low-enrollment programs. In 2025, Indiana public colleges already eliminated or merged over 400 degrees under House Enrolled Act 1001 (HEA 1001), which set minimum graduate thresholds like 10 completers annually for associates. SB 199 shifts focus from enrollment to earnings, using federal College Scorecard data for transparency.
Defining 'Low-Earning Outcome Programs': The Earnings Threshold
Under SB 199, a program qualifies as low-earning if its graduates' median earnings fall short of the state median for high school graduates. For undergraduate degrees, this compares earnings four years post-graduation; for graduate programs, it's ten years post-graduation. Indiana's high school graduate median hovers around $35,000 annually, per recent data.
The CHE will use U.S. Department of Education's College Scorecard, which tracks median earnings based on tax records for former students no longer enrolled. Programs failing this metric in three of the last five years trigger action. This threshold echoes but exceeds federal benchmarks, prioritizing economic self-sufficiency over federal aid restrictions alone.
| Program Level | Earnings Measure | Comparison Benchmark | Failure Trigger |
|---|---|---|---|
| Undergraduate | Median 4 years post-grad | IN HS grads median (~$35k) | 3/5 years below |
| Graduate | Median 10 years post-grad | IN HS grads median (~$35k) | 3/5 years below |
Note: Data lags mean initial reviews target 2022-2026 cohorts, with lists expected in 2027.
The CHE Review Process: Improvement Plans or Elimination
Once identified, at-risk programs must submit a detailed improvement plan to the CHE, outlining strategies like curriculum updates, career services enhancements, or partnerships with employers. The 14-member CHE, all governor appointees, grants waivers for continuations if plans show promise. Absent approval, programs face defunding and closure.
This process incentivizes adaptation: for instance, a music program might integrate commercial music production or education tracks with higher ROI paths. Critics worry the CHE's political composition could bias toward STEM over humanities.Learn more from the Indiana CHE. For faculty navigating changes, resources like AcademicJobs.com's career advice can help pivot to resilient roles.
Programs at Risk: Arts, Education, and More Under Scrutiny
Preliminary federal data flags dozens of Indiana programs. Chalkbeat's analysis highlights associate degrees in teacher education (e.g., Ivy Tech's 549-enrollee program), cosmetology certificates (21 schools), and bachelor's in music (IU Bloomington), dance (Ball State), English (Purdue Northwest, IU Northwest), and graphic communications (Huntington). Purdue Global faces hits in allied health assisting and non-professional legal studies.
- IU Bloomington: Music, Music Therapy, Fine Arts – low median earnings due to freelance/performance careers.
- Purdue Northwest: English Literature, Computer Software – despite tech demand, broad classifications drag averages.
- Ivy Tech: Teacher ed associates – entry-level pay before transfer/bachelor's.
- Ball State: Dance – performance fields often below $35k median early career.
Over 37 programs preliminarily flagged, though some institutions dispute offerings. Broader humanities like philosophy, anthropology, and parks/recreation also vulnerable, as noted by IU faculty. Students in these fields may need to consider higher-demand faculty positions or interdisciplinary options.
Federal 'Do No Harm' Framework: Indiana's State-Level Escalation
SB 199 leverages the federal 'Do No Harm' earnings premium test from the 2025 One Big Beautiful Bill Act. Federally, programs failing two of three years lose Title IV aid eligibility starting 2027 – bachelor's vs. HS grads (national median ~$33k), grads vs. bachelor's holders. Indiana uniquely mandates closure at public schools, not just aid cuts, amplifying impact.Federal details via Inside Higher Ed.
Experts like Jordan Matsudaira praise accountability but urge nuance for fields with delayed ROI, such as teaching or arts leading to grad school.
Stakeholder Perspectives: Support, Criticism, and Concerns
Proponents, including CHE spokespeople, emphasize career alignment: 'Ensures investments lead to opportunities.' IU anthropology students fear departmental erasure; parks lecturer cites low state seasonal pay skewing data.
AAUP's Noor O’Neill calls it 'reductionist,' faulting lawmakers for underpaying educators. Rep. Ed DeLaney dubs it 'academic Stalinism.' Balanced views from Phil Hill note states like Nebraska eyeing similar cuts. Rate professors in stable programs via RateMyProfessor on AcademicJobs.com.
Building on Prior Indiana Reforms: From Enrollment to Earnings
HEA 1001 (2025) forced 19% program cuts via enrollment minima, saving resources but sparking consolidation (e.g., merged humanities). SB 199 adds earnings, potentially axing survivors. Ivy Tech shifted to stackable credentials; universities bolstered career advising.
Implications for Students, Faculty, and Indiana's Workforce
Students face fewer liberal arts options, pushing toward STEM/trades – beneficial for debt aversion but limiting holistic education. Faculty risk layoffs; seek adjunct roles. Workforce gains high-skill alignment, but shortages in teaching/arts persist. Low teacher pay (~$40k min set 2025) exacerbates.
- Benefits: Steers to high-ROI paths (e.g., nursing, IT).
- Risks: Erodes diversity, ignores non-pecuniary value.
Solutions and Alternatives: Adapting to ROI Focus
Institutions pivot: minors/certificates in arts within business degrees, apprenticeships, online stackables. Students explore lucrative lecturer paths. Policymakers could adjust thresholds for public service fields.
National Trends: States Following Indiana's Lead?
Nebraska/NH bills stalled; federal Do No Harm sets floor. ROI push grows amid $1.7T debt. Comparable: Florida/WV low-performer audits.
Photo by Steven Van Elk on Unsplash
Future Outlook: 2027 Lists and Beyond
CHE's 2027 report will list at-risk programs using 2022-26 data. Expect appeals, mergers. For job seekers, focus high-demand higher ed jobs, professor salaries, and professor ratings. AcademicJobs.com aids transitions amid reforms. Explore university jobs and post openings.
