AI legislation affecting Indiana schools and edtech
Indiana schools, universities, and EdTech companies face growing AI scrutiny as classrooms adopt AI tutoring, automated grading, student analytics, and proctoring tools. Federal bills and Indiana General Assembly proposals address student data privacy, algorithmic bias in academic decisions, and generative AI in classrooms. From IU and Purdue to K-12 districts across the state, Indiana education institutions need to track these developments.
61
Bills Affecting Indiana Education
14
High Risk
Key Compliance Considerations
Student data used by AI systems in Indiana schools faces stricter privacy protections beyond FERPA under proposed federal legislation
AI proctoring and monitoring tools used in Indiana classrooms may require parental consent and bias audits
Automated grading and academic assessment AI at Indiana universities and K-12 schools needs transparency and appeal processes
Indiana schools must disclose AI use in student-facing applications under several proposed bills at both the federal and state level
AI Bills Affecting Indiana Education
S 4855
Senator John Curtis (R-UT) introduced this bill requiring AI companies whose products are used by minors to build in child safety features, parental controls, and undergo independent audits. It also bans targeted advertising to children and prohibits selling or sharing kids' personal data through AI systems.
Last action: Jun 23, 2026
SB 3384
Illinois SB 3384, introduced by Senators Laura Ellman and Rachel Ventura, would regulate 'AI companion' products (chatbots and virtual companions designed for ongoing emotional or social interaction with users). The bill aims to set safety standards for these systems, particularly to protect minors and vulnerable users from harm linked to parasocial AI relationships.
Last action: May 25, 2026
S 4407
Senator Ted Cruz (R-TX) introduced a bill requiring AI chatbot companies to create special family accounts for children under 13 and get verifiable parental consent for teens 13-17. Companies like ChatGPT, Claude, and Gemini would need to build parental control systems and age verification processes, similar to what social media platforms currently do under COPPA.
Last action: Apr 28, 2026
S 4199
Senator Markey (D-MA) introduced a bill that would ban companies from using AI to collect or process personal data from anyone under 17 without explicit consent. The Youth AI Privacy Act specifically targets AI systems that analyze biometric data, predict behavior, or make automated decisions about minors, requiring companies to delete collected data and conduct regular impact assessments.
Last action: Mar 25, 2026
SB0256
Indiana's SB0256, signed into law as Public Law 131, requires state contractors providing technology products or services to certify that neither they nor their subcontractors are 'prohibited persons' tied to foreign adversaries (think China, Russia, Iran, North Korea). It also restricts foreign land purchases, mandates foreign student reporting at universities, and voids government contracts with prohibited entities. Sponsored by Sen. Chris Garten and a large Republican coalition.
Last action: Mar 5, 2026
HB5044
Illinois Rep. Jennifer Gong-Gershowitz introduced a bill that would treat chatbots as 'products' under strict liability law, meaning any company that creates or distributes a chatbot could be sued for user injuries even if they took every reasonable precaution. Users could sue for damages, injunctions, and attorney's fees in state or federal court, with no requirement that they had a direct relationship with the chatbot provider.
Last action: Feb 4, 2026
SB3180
Illinois Senator Rachel Ventura's SB3180 would require any company deploying AI to Illinois residents to get explicit written consent before training AI on user data and keeping that training data indefinitely. Starting January 2027, violators face lawsuits from users ($1,000 to $5,000 per violation plus attorney fees) and enforcement by the Illinois Attorney General under the state's consumer fraud law.
Last action: Feb 2, 2026
S 3308
Senator Ed Markey (D-MA) introduced a sweeping federal bill that would regulate how companies use AI in consequential decisions like hiring, lending, housing, healthcare, and education. It requires pre-deployment bias testing, independent audits, human review of AI decisions, and bans certain uses like emotion recognition in workplaces and schools.
Last action: Dec 2, 2025
S 2164
Senator Ron Wyden (D-OR) introduced the Algorithmic Accountability Act of 2025, which would require companies using AI and automated decision-making systems to conduct impact assessments and document how their algorithms work. The bill targets businesses using AI for critical decisions like hiring, lending, healthcare, and housing, forcing them to evaluate their systems for bias, discrimination, and privacy risks before deployment.
Last action: Jun 25, 2025
S 1748
Senator Marsha Blackburn (R-TN) reintroduced the Kids Online Safety Act (KOSA), which forces social media platforms and online services to actively prevent harm to minors from features like algorithmic recommendations, addictive design, and content promoting suicide, eating disorders, or substance abuse. Platforms would owe minors a legal 'duty of care' and must give kids and parents tools to disable addictive features and limit data collection. It sits in the Senate Commerce Committee after passing the Senate 91-3 in the previous Congress.
Last action: May 14, 2025
SB 50
Illinois SB 50 would require online platforms likely to be accessed by minors to design their services with kids' safety and privacy as the default. It targets algorithmic recommendations, data collection, and design features (like autoplay and infinite scroll) that can harm young users, modeled after similar laws in California and the UK.
Last action: Apr 11, 2025
HR 1283
Rep. Gus Bilirakis (R-FL) introduced this bill to update federal child sexual abuse material (CSAM) laws to explicitly cover AI-generated content, including deepfakes and synthetic imagery depicting minors. It would close a legal gap that currently makes it hard to prosecute creators of AI-generated child exploitation material when no real child was involved in production.
Last action: Feb 13, 2025
S 321
Senator Josh Hawley (R-MO) introduced this bill to sever U.S. AI development from China by banning imports of AI tech from China, blocking American investment in Chinese AI, and restricting research collaboration. Violators face steep civil and criminal penalties, including up to 20 years in prison and $1 million in fines for individuals.
Last action: Jan 29, 2025
SB0051
Illinois Senator Sue Rezin's SB0051 would require any business running an online service likely to be used by anyone under 18 to complete data protection impact assessments, turn on high-privacy defaults, and stop profiling kids or using dark patterns. Violations could cost $2,500 per child for negligence or $7,500 per child for intentional violations, enforced by the Illinois Attorney General.
Last action: Jan 13, 2025
HR 9279
Rep. Harriet Hageman (R-WY) introduced this bill to prohibit AI developers from censoring or suppressing lawful speech in their AI models. It would create new federal restrictions on how companies like OpenAI, Google, and Anthropic moderate content generated by their AI systems, with enforcement likely through the FTC or private right of action.
Last action: Jun 11, 2026
SB 416
Illinois SB 416, introduced by Senator Rob Martwick and a bipartisan group of cosponsors, addresses AI use in education technology. The bill is currently stuck in the Rules Committee, meaning it has not advanced to substantive debate, but it signals Illinois lawmakers' interest in regulating AI tools used in K-12 and higher education settings.
Last action: May 31, 2026
SB 2909
Illinois SB 2909, led by Senator Christopher Belt, would prohibit school districts from using artificial intelligence as the sole basis for evaluating teacher performance. AI can still assist in evaluations, but a qualified human evaluator must make the final call. The bill has passed both chambers and is headed to the governor.
Last action: May 27, 2026
SB 3735
Illinois SB 3735, introduced by Senator Rob Martwick and colleagues, would regulate how schools and education technology vendors collect and use student biometric information (think fingerprints, facial scans, voice prints) and related AI tools. It establishes student data rights around biometric collection in K-12 and potentially higher education settings. The bill is currently stalled in committee after being re-referred to Assignments.
Last action: May 22, 2026
SB 3262
Illinois SB 3262, the Companion AI Protection Act, would regulate AI chatbots designed to simulate emotional or social relationships with users (think Replika, Character.AI, and similar companion apps). The bill likely imposes safeguards around minors, mental health interactions, and disclosure that users are talking to AI rather than a human. It is currently stalled in committee under Rule 3-9(a).
Last action: May 22, 2026
SB0415
Illinois SB0415, introduced by Senator Karina Villa and eight co-sponsors, bars public school districts from buying biometric systems (facial recognition, fingerprint scanners, voice recognition, iris scans) for use on students unless the district determines it serves a legitimate instructional purpose like identification or fraud prevention. By the 2027-2028 school year, any biometric tech already in use must be limited to those narrow purposes, and existing vendor contracts cannot be renewed if they conflict with the new rules.
Last action: May 21, 2026
HR 8623
Rep. Blake Moore (R-UT) introduced HR 8623, which would force AI chatbot operators like ChatGPT, Character.AI, and Replika to verify users' ages and disclose key information about how their bots work. The bill aims to protect minors from AI chatbot harms and ensure users know when they're talking to AI rather than a human.
Last action: Apr 30, 2026
HR 8382
Rep. Blake Moore (R-UT) introduced a bill that would ban AI chatbots in children's products. The bill makes it illegal to manufacture or sell toys, apps, or other products for kids under 13 that include AI chat features, with fines up to $5,000 per violation.
Last action: Apr 21, 2026
HB5003
Illinois Rep. Bob Morgan's HB5003 carves out a narrow exemption in the state's therapy licensing law so academic medical centers can research AI-assisted therapy without violating rules against unlicensed psychotherapy. The exemption only covers IRB-approved studies at accredited hospitals, not commercial AI therapy products sold to consumers, and it expires January 1, 2030.
Last action: Feb 4, 2026
HB1099
Indiana HB1099, sponsored by Rep. Matt Commons and others, restricts foreign adversary involvement in state contracts, university enrollment, and real estate. It lets state entities contract with 'prohibited persons' for tech products only if the contractor certifies neither they nor their subcontractors act as agents of a foreign adversary (think China, Russia, Iran, North Korea), and it bars certain foreign individuals and entities from buying Indiana real property.
Last action: Feb 3, 2026
HB1178
This Indiana bill from Rep. Joanna King would require social media platforms to get verifiable parental consent before letting anyone under 14 create an account, and would force platforms to give parents control over their kids' accounts. It's a social media age-verification law, not really an AI bill, but it hits any platform using algorithmic feeds or recommendation systems for minors.
Last action: Jan 5, 2026
HB1859
Illinois HB1859, introduced by Rep. Abdelnasser Rashid and now enacted as Public Act 104-0201, prohibits Illinois community colleges from using AI as the sole instructor for any course. A qualified human faculty member must teach the course, though they can still use AI tools to supplement their teaching.
Last action: Aug 15, 2025
SB 2203
Illinois SB 2203 would regulate 'automated decision tools' used to make consequential decisions about people, things like hiring, lending, housing, healthcare, and education. Companies deploying these AI systems would need to conduct impact assessments, notify affected individuals, and avoid algorithmic discrimination. The bill is currently stuck in committee (re-referred to Assignments under Rule 3-9(a)), meaning it has stalled but is not dead.
Last action: Apr 11, 2025
SB 1239
Illinois SB 1239 would amend the School Code to regulate how K-12 schools collect, use, and share students' biometric information (think fingerprints, facial scans, iris scans). It sets parental consent rules and limits on data retention, which directly affects ed-tech vendors and AI systems that use student biometrics.
Last action: Apr 11, 2025
HB 5848
Illinois HB 5848, introduced by Rep. Janet Yang Rohr and nine co-sponsors, would expand the state's school bullying definition to explicitly include AI-generated deepfakes (think fake nude images or fabricated videos of students). Schools would have to treat deepfake harassment as bullying under existing anti-bullying policies, triggering investigation and discipline procedures.
Last action: May 15, 2024
S 5055
Senator Mark Warner (D-VA) introduced this bill to create a National Workforce Transition Board that would fund training and education for workers displaced by AI and emerging tech. It's an advisory and grant-making body, not a regulatory one, so it doesn't impose new rules on how companies use AI.
Last action: Jul 21, 2026
HR 5584
Rep. Thomas Kean's LIFT AI Act directs federal agencies (likely NIST and related bodies) to study and support AI workforce development and adoption, focusing on training and capacity-building rather than restricting AI use. It's currently sitting in the House Science Committee with no compliance mandates for private businesses.
Last action: Jun 25, 2026
HR 9334
Rep. Zoe Lofgren (D-CA) introduced this bill to expand the federal AI workforce by funding fellowships, scholarships, and training programs at agencies like NIST. It does not regulate private sector AI; instead, it builds the government's bench of AI experts to support trustworthy AI standards.
Last action: Jun 25, 2026
HR 2385
The CREATE AI Act, introduced in the House of Representatives, would establish the National AI Research Resource (NAIRR) to give academic researchers and small businesses access to computing power and datasets for AI development. This federal program would level the playing field between Big Tech companies and smaller organizations by providing free access to expensive AI infrastructure that currently only major corporations can afford.
Last action: Jun 25, 2026
S 4742
Senator Mark Kelly's AI DATA Act directs federal action on artificial intelligence workforce data, likely tasking agencies (under the HELP Committee's jurisdiction) with collecting and analyzing data on how AI affects American jobs and skills. It is currently sitting in the Senate HELP Committee and does not impose direct compliance obligations on private companies at this stage.
Last action: Jun 10, 2026
S 4441
Senator Todd Young (R-IN) reintroduced the CREATE AI Act to formally establish the National Artificial Intelligence Research Resource (NAIRR), a shared federal computing and data infrastructure that gives academics, startups, and small developers access to the expensive tools needed to build AI. It's about democratizing AI research, not regulating private sector AI use.
Last action: Apr 29, 2026
S 4414
Senator Adam Schiff's LIFT AI Act would direct the National Institute of Standards and Technology (NIST) to study AI literacy and workforce readiness across the U.S. economy. It does not create new rules for businesses; it sets up federal research and recommendations on closing the AI skills gap.
Last action: Apr 28, 2026
HR 8516
Rep. Ted Lieu (D-CA) introduced this bill to position the U.S. as the global leader in AI development through federal investment in research, workforce training, and public-private partnerships. It's primarily a strategic and funding bill, not a regulatory crackdown, focused on boosting American AI competitiveness rather than restricting how companies use AI.
Last action: Apr 27, 2026
HR 7968
Rep. Suhas Subramanyam (D-VA) introduced this bill to help small businesses and startups access federal AI resources. It would create a new program at NIST (National Institute of Standards and Technology) that gives smaller companies access to government AI testing tools, datasets, and expertise that are currently only available to large corporations and research institutions.
Last action: Mar 17, 2026
HR 3679
Rep. Mike Collins (R-GA) introduced this bill to help small businesses adopt AI tools through education, training, and resources via the Small Business Administration. It directs the SBA to create programs that teach small business owners how to use AI responsibly and competitively, rather than imposing new restrictions or compliance burdens.
Last action: Feb 24, 2026
S 3888
Senator Jerry Moran (R-KS) introduced this bill to direct the Small Business Administration to create AI training programs for small business owners and employees. It focuses on education and workforce readiness, not regulation, helping small businesses learn how to adopt and use AI tools effectively.
Last action: Feb 12, 2026
SR0610
Illinois Senator Adriane Johnson introduced a non-binding resolution urging the Illinois State Board of Education to create statewide guidelines for ethical AI use in K-12 classrooms. It supports student data protections, algorithmic transparency, bias monitoring, AI literacy in curricula, and investment in educator training and broadband access. The resolution creates no new laws or penalties.
Last action: Feb 5, 2026
HB4704
Illinois Rep. Tracy Katz Muhl's HB4704 extends confidentiality protections to student safety tips submitted through private school helplines (similar to the state's Safe2Help program), shielding them from Freedom of Information Act requests. Intentionally leaking that information would become a Class C misdemeanor. This is a school safety and privacy bill with no AI-specific provisions.
Last action: Jan 29, 2026
HR 7158
Rep. Valerie Foushee (D-NC) introduced this bill to expand participation in AI research and development by directing federal funding toward Historically Black Colleges and Universities, Hispanic-Serving Institutions, and other minority-serving institutions. It aims to diversify the AI workforce and research pipeline rather than regulate how companies use AI. Currently sitting in the House Science Committee.
Last action: Jan 20, 2026
SB2786
Illinois State Senator Lakesia Collins introduced a bill authorizing a no-bid contract with Amp AI (dba Nozma) to run a 6-month AI procurement pilot in up to 7 small Illinois municipalities (each under 200,000 population). The contractor would test AI tools for classifying RFPs, analyzing equity in contracting, and building data security frameworks for local government purchasing.
Last action: Jan 13, 2026
HR 6573
Rep. Sara Jacobs (D-CA) introduced this bill to help the federal government recruit and retain AI talent by creating new hiring pathways and training programs for AI specialists in federal agencies. It focuses on building government AI expertise rather than regulating private sector AI use.
Last action: Dec 10, 2025
S 3410
Senator Andy Kim (D-NJ) introduced this bill to create specialized tech and AI talent teams inside federal agencies to modernize how the government hires technical workers. It's an internal government hiring reform, not a regulation on private businesses. The bill is currently sitting in the Senate Homeland Security committee.
Last action: Dec 10, 2025
HR 6530
Rep. Rick Larsen (D-WA) introduced this bill to require the Department of Defense to train its national security workforce on AI capabilities, risks, and applications. It focuses on government personnel readiness, not private-sector regulation, so businesses outside the defense contracting world face minimal direct impact.
Last action: Dec 9, 2025
S 3336
Senator Maggie Hassan (D-NH) introduced this bill to fund federal research into making AI systems more reliable, predictable, and trustworthy. It directs government agencies to study and develop standards for AI reliability but does not impose new rules on private companies. The bill is currently sitting in the Homeland Security and Governmental Affairs Committee.
Last action: Dec 3, 2025
S 3339
Senator Jim Banks (R-IN) introduced the AI Workforce PREPARE Act to help American workers adapt to AI-driven changes in the labor market. The bill focuses on workforce training, education, and preparing employees for jobs affected by AI automation. It's currently sitting in the Senate HELP Committee with no compliance mandates for private businesses.
Last action: Dec 3, 2025
HR 6159
Rep. Luz Rivas (D-CA) introduced the AI for ALL Act, which directs federal agencies to study and promote broader access to AI education, workforce training, and research opportunities across underserved communities. It's an early-stage bill focused on expanding the AI talent pipeline rather than regulating how companies use AI.
Last action: Nov 19, 2025
S 3063
Senator Bill Cassidy (R-LA) introduced the LIFE with AI Act to study how artificial intelligence is reshaping American life, including its impact on jobs, education, and healthcare. The bill appears focused on research and policy recommendations rather than immediate AI regulation, and it has been referred to the Senate HELP Committee.
Last action: Oct 28, 2025
SB1920
Illinois SB1920, sponsored by Senator Doris Turner and now enacted as Public Act 104-0399, directs the State Board of Education to publish AI guidance for K-12 schools by July 1, 2026, covering topics like bias, privacy, and classroom use. It also updates internet safety curriculum to address AI-generated deepfakes (including sexually explicit ones) and requires ISBE to publish how it evaluates educator licensing tests for bias.
Last action: Aug 15, 2025
HR 3775
Rep. Nancy Mace (R-SC) introduced this bill to extend an existing federal requirement that federal supervisors and managers receive training on artificial intelligence. It focuses on government workforce readiness, not private sector regulation, and currently sits in the House Oversight Committee.
Last action: Jun 5, 2025
S 1633
Senator Ben Ray Luján's TEST AI Act of 2025 would direct the National Institute of Standards and Technology (NIST) and the Department of Energy to build federal testing infrastructure for evaluating AI models, including safety, security, and performance benchmarks. It's currently sitting in the Senate Commerce Committee and focuses on government capacity-building rather than regulating private companies directly.
Last action: May 7, 2025
HR 3210
Representative Adriano Espaillat (D-NY) introduced this bill to boost AI literacy and inclusion across the US workforce, likely through education programs, grants, and training initiatives targeting underrepresented communities. It's currently sitting in multiple House committees, including Science, Education, and Small Business, and focuses on building AI skills rather than regulating AI use.
Last action: May 6, 2025
HB 2503
Illinois HB 2503, introduced by Rep. Laura Faver Dias along with Reps. Camille Lilly and Will Guzzardi, would add artificial intelligence to the Illinois school code curriculum requirements. The bill targets K-12 education, not businesses directly, but signals the state's growing focus on AI literacy and workforce preparation.
Last action: Apr 23, 2025
SB 1556
Illinois SB 1556 amends the state's school code to address artificial intelligence use in K-12 public schools. The bill, currently stuck in committee after being re-referred to Assignments, would establish guidelines for how AI tools are used by students, teachers, and administrators in Illinois public education.
Last action: Apr 11, 2025
S 1290
Senator Gary Peters (D-MI) introduced a bill requiring the National Institute of Standards and Technology (NIST) to create a standardized framework for AI workforce roles and skills. The bill would establish official job titles, required competencies, and career pathways for AI professionals across government and industry, similar to existing frameworks for cybersecurity roles.
Last action: Apr 3, 2025
HB 3529
Illinois Rep. Janet Yang Rohr introduced HB 3529 to establish state-level AI principles, likely setting baseline expectations for how AI systems should be developed and used in Illinois. The bill is currently stalled in the Rules Committee, meaning it has not advanced to substantive debate or amendment.
Last action: Mar 21, 2025
SB2117
Illinois SB2117, introduced by Sen. Sally Turner, expands the state's existing Generative AI Task Force to study how state agencies procure and use generative AI, and to recommend which government uses should be banned outright. The Task Force must deliver an addendum report by December 31, 2026. No direct rules on private businesses.
Last action: Feb 7, 2025
HB 1296
Indiana HB 1296 would require state agencies to create inventories of all AI systems they use and develop policies for responsible AI deployment. The bill mandates transparency about how government uses AI but doesn't directly regulate private businesses.
Last action: Jan 13, 2025
Common questions
Frequently Asked Questions
What AI laws affect Indiana schools and universities?
Indiana educational institutions face AI regulation covering student data privacy, AI proctoring tools, automated grading, and EdTech vendor requirements. Federal proposals would extend FERPA protections to AI-processed student data. State-level bills address AI use in K-12 classrooms and higher education admissions. EdTech vendors selling to Indiana schools should also track procurement-related AI requirements.
Can Indiana schools use AI for grading and assessment?
Currently, yes, but transparency and appeal requirements are coming. Proposed legislation would require schools to disclose when AI is used in grading, provide human review on request, and ensure automated assessments do not discriminate against students with disabilities or English language learners. Schools using AI writing detection tools face additional accuracy and fairness scrutiny.
How should EdTech companies prepare for AI regulation?
EdTech companies should build transparency into their products now: clear disclosures of AI use, human override capabilities, and bias testing documentation. Prepare for procurement requirements that will ask for AI fairness audits, data handling certifications, and algorithmic impact assessments. Companies that can demonstrate compliance early will have a competitive advantage as regulations take effect.
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