Governor Mike Braun Grants $80 Million Bonus to State Employees

Mike Braun announced that eligible Indiana state employees will receive one-time bonuses in their July 29 paychecks, costing the state approximately $80 million. The payments are tiered based on length of service: employees hired before January 13, 2025, will receive $2,500; those hired between January 14 and July 1, 2025, will receive $2,000; and those hired between July 2 and December 31, 2025, will receive $1,000. Part-time staff will receive half of these amounts, while those hired in 2026 are ineligible.

Despite strong tax revenue collections and a projected budget surplus of nearly $5 billion by mid-2027, the administration will not provide ongoing pay raises. The current state budget excludes such increases and includes a 90% reduction in the contingency fund typically used for salary adjustments.

Governor Braun attributed the funding for these bonuses to his administration's focus on fiscal discipline, operational efficiencies, and a business-minded approach to government operations.