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Gov. Holcomb signs inflation relief bill into law

Indiana state Rep. Sharon Negele, R-Attica, right, speaks during an Indiana Senate Tax and Fiscal Policy Committee meeting at the Statehouse in Indianapolis, on Wednesday, Aug. 3, 2022. Negele spoke in favor of a proposal to give each taxpayer a $225 rebate from the state's surging budget surplus, but the Senate committee on Wednesday advanced a differing plan without the refund payments. (AP Photo/Tom Davies)

UPDATE: Gov. Eric Holcomb on Friday night has signed a bill into law that includes $200 rebate payments.

INDIANAPOLIS (AP) — The Indiana House has approved a bill that includes $200 rebate payments from the state’s surging budget surplus.

Though less than Republican Gov. Eric Holcomb’s initially proposed $225 refunds, the bill approved Friday represents a concession from GOP senators who were reluctant to go along with that plan because they were concerned the rebates would further fuel inflation.

The compromise includes utilizing about $1 billion from the state’s record $6.1 billion in cash reserves for the rebates.

Another approximately $1 billion will flow toward a state teacher pension fund’s future obligations, a debt Senate Republican leaders have prioritized paying.