The state of Indiana took in $733 million less from the federal government last year compared to the previous year, according to an analysis by award indexer Granted.
The grand total in the previous federal fiscal year — which ran from Oct. 1, 2024 through Sep. 30, 2025 — was $22.6 billion, down 3%.
That’s although Medicaid grants increased to $15.9 billion, up from $14.7 billion, according to the July analysis. Money for the low-income health insurance program made up 70% of federal receipts.
But when Medicaid is excluded from the results, the percentage drop grows to double digits. Competitive grants to Indiana fell to $6.7 billion, down 22% from the previous $8.6 billion subtotal.
The Biden-era Broadband Equity, Access and Deployment program represents the largest share of the $1.9 billion drop, according to Granted founder Nathan Eagle, who tapped the federal government’s spending database for net financial assistance awards.
Indiana received $868 million in federal fiscal year 2024 to bring high-speed internet to every Hoosier. The line item for the one-time program then fell to zero in the 2025 fiscal year.
The Indiana Broadband Office, meanwhile, is busy putting the money to work. It has received approval to allocate about 40% to internet service providers in the first round of awards, according to a January newsletter, but there’s plenty left to do.
Funding for New Empowering Rural America also decreased to zero, from nearly $679 million. The program, another initiative of former President Joe Biden’s administration, offered loans and grants to rural electric cooperatives transition for renewable energy projects.
President Donald Trump’s administration has introduced a similar effort, Powering Affordable Reliable Technology, which will furnish partially forgivable loans for investment in biomass, geothermal or hydroelectricity, as well as energy storage systems. The program will begin accepting letter of interest next month, according to its website.
Indiana additionally netted $292 million less for the Epidemiology and Laboratory Capacity program, which is meant to strengthen the nation’s ability to detect, prevent and respond to infectious diseases.
That line item, Eagle cautioned, “is a net deobligation rather than a thin award year, so it reads as money coming back rather than money not arriving.”
The state chose not to participate in the Summer Electronic Benefit Transfer program to feed hungry schoolchildren, so that award dropped to zero, down from nearly $164 million.
Indiana has only participated once, in the first year of the initiative. The state passed $120 monthly onto 669,000 children in the summer of 2024, while schools and their cafeterias were closed. Officials opted out last summer, and have said they’ll do so again next summer, Fox59 reported.
Additionally, funding for the Drinking Water State Revolving Fund also decreased to about $77 million, down from $214 million.
There were some increases beyond Medicaid, however, including three transportation infrastructure program.
Nationally Significant Freight and Highway Projects grew to $143 million from zero, Federal Transit Capital Investment nearly cracked $142 million compared to just $8 million and Highway Planning and Construction landed at $1.4 billion, up from about $1.3 billion.
Grid Infrastructure Deployment and Resilience rounds out the top five, increasing to nearly $103 million from under $5 million.
Indiana Capital Chronicle is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Indiana Capital Chronicle maintains editorial independence. Contact Editor Niki Kelly for questions: info@indianacapitalchronicle.com.
