CINCINNATI — As we turn the page to 2026, lawmakers in Ohio, Kentucky and Indiana wrapped up a busy legislative season that reshaped policy on education, taxes and infrastructure.
From sweeping campus reforms in Ohio to tax relief for tipped employees in Kentucky, many measures have already taken effect. But here are some of the big ones going into the new year.
Ohio
Adult-use marijuana regulations
Restructures marijuana oversight into a Division of Cannabis Control within the Department of Commerce, merging medical and adult-use regulation. Supporters say SB 56 provides a unified, enforceable framework for Ohio’s cannabis industry; critics warn it erodes key parts of the legalization measure.
Signed into law in December, it also serves to end the sale of unregulated intoxicating hemp products. The bill is set to take effect in March 2026.
Cell phone use in schools
Every school district, community school and STEM school in Ohio is required to adopt a policy prohibiting cell phone use by students during the instructional day by Jan. 1. Districts or schools are allowed to prohibit students from carrying phones on property, as well as prohibit any and all electronic communication devices.
Many local districts adopted a cell phone policy before the end of the year.
Competitive retail electric service changes
House Bill 15 is a major rewrite of Ohio’s competitive retail electric service laws. It updates regulations for electricity and natural gas markets, changes how public utility property is taxed, and repeals key portions of House Bill 6 (2019) — the controversial energy legislation at the center of Ohio’s public corruption scandal.
Signed in late 2025, some core provisions took effect immediately, while other administrative rules will roll out in 2026.
Kentucky
Income tax rate reductions
Kentucky's individual income tax will go from 4% to 3.5% starting in the new year.
The state actually came just short of meeting tax revenue requirements to lower individual income tax to 3% in 2027, per this fiscal year's results, but there is a chance that it could drop another half-percent in 2028, depending on the tax revenue from the fiscal year ending in the summer of 2026.
THC drink regulations
Starting Jan. 1, Kentucky will prohibit the sale of THC-infused seltzers at fairs and festivals.
This comes after Senate Bill 202 passed, regulating where THC drinks can be sold. If you want a THC-infused seltzer, you'll have to go to a liquor store to buy it directly.
Indiana
EV Registration Fee Reform
This bill adjusts supplemental registration fees for electric vehicles, exempting certain low-weight EVs to encourage adoption. Effective January 1, 2026, it’s part of Indiana’s shift toward greener transportation policy.
Looking Ahead to 2026
Ohio could see legal tests to its higher education changes (SB1) and pushback on cannabis consumer rule changes (SB56). Indiana lawmakers may also expand EV policies as infrastructure debates intensify. Indiana may expand EV incentives as infrastructure funding debates heat up.
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