Background on Senate Bill 199

In a move aimed at ensuring higher education delivers tangible economic value, Indiana Governor Mike Braun signed Senate Bill 199 into law on March 5, 2026. This legislation, which takes effect on July 1, 2026, directs the Indiana Commission for Higher Education (CHE) to scrutinize degree programs at public colleges and universities across the state. The focus is on programs where graduates' median earnings fall below those of typical high school graduates in Indiana, prompting reviews that could lead to consolidation, elimination, or special waivers.

Sponsored by Sen. Jeff Raatz (R-Richmond), SB 199 builds on prior reforms like House Enrolled Act 1001 from 2025, which prompted public institutions to voluntarily cut or merge over 400 low-enrollment programs. Those changes eliminated 75 degrees outright, many with zero students, and suspended or committed to suspending hundreds more. Now, SB 199 shifts the lens to earnings outcomes, using data-driven criteria to align education with workforce needs.

The bill passed the Indiana Senate 34-14 and the House 62-32 before heading to the governor's desk. While supporters view it as a taxpayer safeguard, critics argue it undervalues fields like the arts and humanities that offer non-monetary benefits.

🎓 Defining Low-Earning Degrees

A 'low-earning degree' under SB 199 is defined using metrics from the federal 'Do No Harm' earnings test, part of the 2025 One Big Beautiful Bill Act. For undergraduate programs, this means median earnings of graduates—measured four years after completion, excluding those in further education or not working—must exceed the median for 25- to 34-year-old high school graduates in Indiana. Estimates place this threshold around $33,000 to $35,000 annually, though it varies with state data.

Graduate programs face a higher bar: earnings compared to bachelor's degree holders. Programs failing this test in at least two of the last three years trigger CHE review. Institutions must justify continuation through waivers, involving thorough evaluations of program value, enrollment trends, and alternatives.

The CHE already provides tools like its Return on Investment Dashboard, which lets users compare earnings by institution, program, and credential level. This interactive resource calculates return on investment (ROI) by factoring in tuition costs against lifetime earnings premiums over high school graduates.

• Median earnings data sourced from federal College Scorecard.
• ROI formula: (Earnings premium - Opportunity costs) over time.
• Adjusts for completion rates and debt levels.

Programs Potentially at Risk

Preliminary federal data highlights about a dozen undergraduate and graduate programs at Indiana public institutions that could fail the test. A fuller list is expected in 2027 after CHE analysis. Notable examples include:

• Indiana University Bloomington: Bachelor of Music from the prestigious Jacobs School of Music (median ~$42,250, but some cohorts below threshold).
• Ball State University: Bachelor of Dance.
• Indiana University Northwest and Purdue University Northwest: Bachelor of English Language and Literature (General).
• Purdue University Northwest: Bachelor of Computer Software and Media Applications.
• University of Southern Indiana: Master of Mental and Social Health Services.
• Ivy Tech Community College: Associate degrees in Teacher Education (transfer program with 549 enrollees) and others like Library/Archives Assisting.

These span arts, humanities, education, and niche technical fields. Cosmetology certificates dominate low-earning lists but are mostly at for-profits, outside SB 199's main scope for nonprofits.

Impacts on Key Institutions

Indiana University (IU) systems face scrutiny, particularly regional campuses. IU Bloomington's music program, a national draw, risks cuts despite its prestige, sparking fears for folklore and ethnomusicology mergers. Parks, Recreation, and Leisure Studies graduates often exceed thresholds in full-time roles but falter on seasonal pay.

Purdue University Northwest programs in English and software applications are flagged, though the flagship West Lafayette campus appears safer. Ball State's dance degree highlights arts vulnerabilities. Ivy Tech, Indiana's largest community college, must defend transfer-oriented teacher education amid workforce shortages.

Overall, impacts are limited—a handful amid thousands of programs—but symbolic for liberal arts. Prior HEA 1001 cuts hit IU Bloomington with over 100 suspensions/eliminations, reshaping offerings.

Stakeholder Reactions and Debates

Supporters, including Sen. Raatz, emphasize stewardship: 'Review ensures students and families know economic outcomes.' CHE backs it for career alignment. Critics like Rep. Ed Delaney (D-Indianapolis) decry 'academic Stalinism,' eroding faculty control. IU folklore student Thomas Koehnline laments prioritizing economics over knowledge access. Purdue-Fort Wayne's Noor O’Neill warns of humanities demise.

Even some Republicans, like Sen. Jean Leising, were surprised by the provision's late addition. Faculty stress degrees' broader value—critical thinking, fulfillment—beyond paychecks. Students question metrics ignoring location or part-time work.

Federal Ties and National Trends

SB 199 amplifies federal shifts. The 'Do No Harm' test, effective summer 2026, bars federal aid for failing programs nationwide. Indiana mandates closure, not just aid loss. For full bill text, see the enrolled act.

States like West Virginia eye similar measures. Indiana's college-going rate dipped to 51.7% for 2023 grads, fueling ROI focus amid enrollment drops.

📊 Advice for Students and Faculty

Prospective students: Use CHE's ROI dashboard to vet programs. Pair arts degrees with minors in business or tech for versatility. Current enrollees: Monitor CHE updates; affected programs may teach out.

Faculty: Build waiver cases with alumni success stories, placement data. Explore academic career advice for pivots. Job seekers: Check professor salaries and higher ed jobs for stable paths.

Photo by Preston A Larimer on Unsplash

• Research earnings via College Scorecard.
• Consider stackable credentials.
• Network via Rate My Professor.

Future Outlook and Opportunities

While cuts loom, waivers offer paths forward. Institutions may bolster career services, apprenticeships. Positive: Drives efficiency, spotlights high-ROI fields like nursing, engineering.

For Hoosiers, this underscores choosing degrees with strong career prospects. Explore university jobs, faculty positions, or post a job at AcademicJobs.com. Share professor insights at Rate My Professor or browse higher ed jobs to navigate changes.