“Indiana For the Bold” is a slogan for the Indiana Economic Development Corp., or IEDC. It is seen atop the Indiana Government Center North on 100 N. Senate Ave. next to the Indiana Statehouse. Photo taken Tuesday, Sept. 23, 2025 from USA TODAY Network.

By Hayleigh Colombo, Indianapolis Star
USA TODAY Network via Reuters Connect

INDIANAPOLIS — An Indiana lawmaker wants the legislature to formally investigate the embattled Indiana Economic Development Corp., but the top House Republican lawmaker who would need to sign off on the idea is splashing some cold water on the prospect.

State Rep. Ed DeLaney, D-Indianapolis, who has long been critical of the IEDC, has introduced a House resolution that would establish a select committee on accountability “to investigate the financial, administrative, and procedural practices” of the IEDC.

He said that the audit initiated by Gov. Mike Braun last year was a first step, but it only showed the public that there was the opportunity for waste – not “whether any had occurred.”

The audit found a “lack of transparency and accountability in the management of state funds” by third parties and raised concerns about “the potential for favoritism and misuse of public funds.”

“We need to go to that next level,” DeLaney said. “The public needs to know if any harm was done.”

Since Democrats are in the minority, they can’t launch the committee by themselves. They need Republican support, specifically from Speaker Todd Huston. But while Huston said he would assign the resolution to a legislative committee, he also indicated he didn’t think there was time to get it across the finish line before the legislature adjourns this spring – and said it was time for people to move on from the scandal.

“The fact of the matter is we need to move forward,” Huston told reporters on Jan. 22, saying he had a high degree of confidence in the IEDC. “At some point we have to continue to focus on having IEDC attract businesses to our state and do it the right way, and that’s what’s being done.”

DeLaney acknowledged that the committee wouldn’t happen without Republican support. DeLaney said he believed the governor’s office was neutral about the proposal but a spokesperson for the governor didn’t return IndyStar’s request for comment.

“If the leadership isn’t for it, it’s not going to happen,” he said.

But the top House Democrat, House Minority Leader Phil GiaQuinta of Fort Wayne, said there was plenty of time to move on DeLaney’s resolution and signaled they’d try to push it forward in another way, possibly through an amendment on a related bill, calling that strategy “not a bad idea.”

‘Safeguard The Integrity Of Public Funds’

DeLaney’s resolution says the House “bears a key responsibility to safeguard the integrity of public funds and ensure their lawful, efficient and ethical expenditure.”

The audit, among other findings, identified 30 entities in which an IEDC board member or employee had a potential conflict of interest in and the entity received funding from the IEDC between 2022 and 2024. Yet, there was very little disclosure of such conflicts.

IndyStar also reported last fall that entities controlled by a few powerful insiders who wielded a firm grasp over how the Indiana Economic Development Corp. spent millions of taxpayer dollars – known by some as the “Three Kings” of the IEDC – benefited handsomely from those taxpayer-funded grants and no-bid professional services contracts.

Under former Gov. Eric Holcomb’s administration, IndyStar reporting found the IEDC doled out more than $180 million over less than six years in awards to entities controlled, either in whole or in part, by at least one – and sometimes all – of the three men.

Shortly before one of the men, Dave Roberts, a former IEDC executive, left the IEDC to become CEO of an affiliated entity, the Applied Research Institute, the entity was awarded a grant from the IEDC that would eventually grow to become worth $17.5 million. Roberts never appeared to seek a post-employment waiver from the state when he took the role, either, despite an Indiana law requiring a yearlong cooling-off period.

He said the public is expecting the lawmakers to take the matter seriously and look into whether criminal activity has occurred and how the system can be improved. Otherwise, he said there will be continued degrading of public confidence in economic development efforts.

What The Committee Would Do

Huston indicated he’d send the bill to the House government reform committee led by Rep. Doug Miller, R-Elkhart. Miller’s spokesperson didn’t immediately respond to a request for comment about whether the resolution would get a hearing.

If it were to be approved, the House committee would consist of eleven members, including seven Republicans appointed by the Speaker and four Democrats appointed by the minority leader.

It would “investigate, review and report” on IEDC activity, along with those of IEDC’s affiliated entities, including the LEAP tech district in Lebanon and associated projects.

The committee would have the power to subpoena witnesses, compel the production of records and take sworn testimony – and then would have to issue a final report by June 30.

DeLaney said he wants to not only investigate what went wrong, but also come up with ideas to prevent future issues.

Contact senior government accountability reporter Hayleigh Colombo at [email protected] or follow her on X @hayleighcolombo.

This article originally appeared on Indianapolis Star: “Indiana lawmaker proposes formal investigation into the IEDC. Republicans might kill it.“