Indianapolis, January 31, 2026
The Indiana Senate has passed a provision requiring the elimination of college degree programs with low earning potential, sparking concerns among educators and students about the impact on academic diversity. Senate Bill 199 mandates that programs with median earnings below $33,500 must be discontinued unless institutions can demonstrate their value beyond financial outcomes. This legislative move follows earlier changes in higher education regulations and reflects a growing trend of government influence over academia.
Indianapolis, Indiana – Indiana Senate Passes Provision Eliminating ‘Low-Earning’ College Degrees
The Indiana Senate has passed a provision that mandates the elimination of college degree programs deemed to have low earning outcomes. This decision, made on January 29, 2026, aims to remove programs where graduates earn less than individuals with only a high school diploma. The move has sparked concerns among educators and students about its potential impact on academic diversity and program availability.
Details of the Provision
Senate Bill 199, introduced by Senator Jeff Raatz, includes a clause that targets degree programs with median earnings below the state median for individuals aged 24 to 35 with a high school diploma, approximately $33,500. Institutions offering such programs are required to eliminate them unless they can demonstrate value beyond earnings. Universities can appeal to the Indiana Commission for Higher Education to retain these programs, but without approval, they must be discontinued.
Legislative Process and Support
The bill passed with near-unanimous support, with all Democrats voting in favor. However, some lawmakers expressed concerns about the potential consequences of eliminating programs that may offer value beyond financial outcomes. Despite these concerns, the bill advanced to the governor’s desk for final approval.
Background Context
This legislative action follows previous measures aimed at restructuring higher education in Indiana. In 2025, the state budget bill introduced significant changes, including the elimination of alumni elections for certain university boards and the reduction of faculty governance powers. Additionally, a law passed in 2025 requires universities to meet specific graduation thresholds or face program elimination or consolidation. These developments reflect a broader trend of legislative influence over higher education institutions in Indiana.
Potential Implications
The implementation of this provision could lead to the discontinuation of various degree programs, particularly those with specialized or niche focuses. While the intent is to align educational offerings with market demands, there are concerns about the loss of academic diversity and the potential impact on students pursuing degrees in fields with lower earning potentials but significant personal or societal value.
Next Steps
As the bill awaits the governor’s signature, higher education institutions are preparing to assess their programs in light of the new requirements. Universities will need to evaluate their offerings, considering both the financial implications and the broader educational mission, to determine which programs may be affected by this legislation.
Key Features of Senate Bill 199
| Feature | Description |
|---|---|
| Targeted Programs | Degree programs with median earnings below $33,500 for individuals aged 24 to 35 with a high school diploma. |
| University Requirements | Eliminate or appeal to retain low-earning programs; without approval, programs must be discontinued. |
| Legislative Support | Passed with near-unanimous support; all Democrats voted in favor. |
| Implementation Timeline | Awaiting governor’s signature; universities to assess programs accordingly. |
| Potential Implications | Concerns about loss of academic diversity and impact on specialized fields with lower earnings. |
Frequently Asked Questions (FAQ)
What is Senate Bill 199?
Senate Bill 199 is a legislative measure passed by the Indiana Senate that mandates the elimination of college degree programs with low earning outcomes, defined as median earnings below the state median for individuals aged 24 to 35 with a high school diploma, approximately $33,500.
How does the provision affect universities?
Universities offering programs that meet the low-earning criteria are required to eliminate them unless they can demonstrate value beyond earnings. They can appeal to the Indiana Commission for Higher Education to retain these programs, but without approval, they must be discontinued.
What are the concerns raised by this legislation?
Educators and students are concerned that eliminating programs based solely on earning potential may lead to a loss of academic diversity and limit educational opportunities in fields that, while having lower earnings, offer significant personal or societal value.
What other legislative actions have impacted higher education in Indiana?
In 2025, the state budget bill introduced significant changes, including the elimination of alumni elections for certain university boards and the reduction of faculty governance powers. Additionally, a law passed in 2025 requires universities to meet specific graduation thresholds or face program elimination or consolidation.
What are the next steps for universities regarding this provision?
Universities are preparing to assess their programs in light of the new requirements. They will need to evaluate their offerings, considering both financial implications and their broader educational mission, to determine which programs may be affected by this legislation.
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