Republican leaders in the Senate and House and Gov. Mike Braun reached a decision on a final budget, which includes raising the cigarette tax by $2 a pack to help address a $2.4 billion deficit.

Facing a worse-than-expected fiscal forecast, the Indiana Legislature approved a pared-down $46.2 billion state budget bill early Friday morning that will triple the state’s cigarette tax and cut funding for a wide swath of entities and programs.

STATEHOUSE — Indiana lawmakers wrapped up the 2025 session after midnight Friday, approving a two-year state budget worth $45 billion. The budget, House Enrolled Act 1001, remains about the same size as the last one, even though the state now expects to bring in $2.4 billion less over the next two years.