LOCAL GOVERNMENT FINANCE

HOUSING

• HB 1001, as introduced, creates broad new preemptions around local authority to plan and zone housing projects in an attempt to compel higher-density development strategies and lower costs for housing developers. It preempts density, setback, and parking ordinances that will have a wide-ranging impact. As of today, the bill also includes restrictions on impact fees, which are used to defray the infrastructure costs associated with increased residential taxes. Cities and towns are primary partners and drivers of housing development in the state which has seen a significant uptick since 2020, even in rural areas. This progress is due in large part to investments and development-friendly strategies employed by municipalities within their existing authority. Aim continues to oppose large-scale preemption of planning and zoning authority but supports ways that the state, municipalities, and developers can partner to grow and develop our state and is discussing with the bill authors future proactive solutions that lower housing costs without removing local input.
• Aim has been engaged in productive discussions with leadership in both houses as well as the bill’s author and sponsor on how to amend the bill to protect local decision making and resident input while still moving forward on housing development.
• HB 1001, authored by Rep. Doug Miller (R-Elkhart) and sponsored by Sen. Chris Garten (R-Charlestown), will be eligible for amendment on the floor of the Senate on Monday.

MUNICIPAL ELECTIONS

• HB 1055, as introduced, would give all cities and towns the option to adopt an ordinance that would move municipal elections to the presidential election cycle.
• The bill was amended to require all towns to move to the presidential election cycle with towns over 10,000 in population having the option to pass a resolution to opt out. All cities would continue to have the option to opt in but would be restricted to only the presidential election cycle if they were to opt-in. While the original bill was an option for locals to consider, the initial concern with the introduced legislation of a “may” provision potentially turning into a “shall” was a foreshadowing of what took place in committee earlier this week with all towns, causing concern that cities will also be given a mandate as well moving forward.
• Aim opposes any attempt to erode the municipal election cycle because holding municipal elections on a separate year from state and national elections ensures that local issues are front and center in those elections and they are not overshadowed by national issues or distorted by straight-ticket votes that are more concerned with up-ballot races.
• HB 1055, authored by Rep. Jennifer Meltzer (R-Shelbyville) and sponsored by Sen. Eric Koch (R-Bedford), will be eligible for amendments on the Senate floor on Monday.

REMOVAL OF A CITY OR TOWN FISCAL OFFICER

• HB 1381 as introduced provided for a procedure for a court to remove a city or town fiscal officer that is not performing their duties.
• Language was amended into the bill giving councils power to set the work schedule and remote work policies of elected clerk treasurers.
• Aim opposed the amendment language added to the bill that would defray the separation of powers between elected officials and could be used negatively in situations with personality or political conflicts.
• HB 1381, authored by Rep. Ben Smaltz (R-Auburn) and sponsored by Sen. Sue Glick (R-LaGrange) was not heard in the Senate Local Government committee in the second half of session. While it is unlikely, Aim will watch for this language to re-emerge in the conference committee process.

COMMUNITY CROSSINGS

• SB 179 allows for an additional $75 million Community Crossings Matching Grant Fund call for projects in the spring on 2026 reserved for communities that did not receive funding in the fall of 2025 call. It also allows communities with a population of up to 12,500 to lower their match requirement to 20%.
• Language added last week in committee would unstack local wheel taxes, so city residents would be required to pay the city or county wheel tax, but never both. This alleviates some concerns about double taxation that have slowed down the wheel tax adoption in many communities but also reduces the amount of revenue available through wheel taxes at the local level, especially for communities that have already adopted a municipal wheel tax on top of their county wheel tax and will lose a significant amount of revenue for road funding.
• SB 179, authored by Sen. Mike Crider (R-Greenfield) and sponsored by Rep. Jim Pressel (R-Rolling Prairie),will be eligible for amendment on the floor of the House on Monday.

Listen to more about this week on the ninth episode of the 2026 Market Street to Main Street Podcast Series, Aim’s legislative episodes of the Hometown Innovations Podcast and a supplement to this e-newsletter. In this episode, Jennifer sits down with Matt as they go over key updates from this week at the Statehouse of this quick, short Session.

To listen to Market Street to Main Street, please visit The Terminal post and click the “play button” on the audio player. Or you can subscribe to Aim Hometown Innovations Podcast on Podbean, Apple Podcasts, and Spotify.