Hammond Mayor signs Executive Order imposing hiring freeze in response to “Tax Relief” Bill that will devastate local services

Mayor Thomas M. McDermott, Jr. today signed Executive Order 25-12, declaring an immediate hiring freeze across all City of Hammond departments in response to the passage of Senate Enrolled Act 1 (SEA 1), recently signed into law by Governor Mike Braun.

Billed by its supporters as “tax relief,” SEA 1 is, in reality, a budget time bomb that will explode the finances of local governments across Indiana. The new law overhauls Indiana’s tax structure in a way that strips away a major portion of property tax revenues — the primary funding source for essential local services.

“This isn’t just bad policy — it’s a direct threat to public safety, education, and the basic services Hoosiers count on,” said Mayor McDermott. “Republican and Democratic mayors across the state are united in our opposition to this reckless law. The public has no idea what’s coming, but they’re about to find out when their children’s favorite teacher is laid off, or when it takes longer for a police officer to respond, or when there aren’t enough firefighters to answer the call.”

Preliminary estimates indicate Hammond Civil City alone could lose $8 million annually by 2028. Two-thirds of Hammond’s City’s budget already goes to public safety — meaning cuts on this scale will directly hit the police and fire departments, and eventually, every city service.

And Hammond is not alone. Every city, town, township, county, and public school district in Indiana that relies on property taxes will be forced to slash staff and services because of SEA 1.  Public school teachers, police officers, and firefighters will bear the brunt of the fallout — with layoffs and unfilled vacancies becoming the norm statewide.

“This is not about politics,” McDermott continued. “This is about survival. You can’t gut local budgets by millions of dollars and pretend it won’t cost people their jobs — or that it won’t cost Hoosiers their safety and quality of life.”

Effective immediately, Hammond’s hiring freeze will remain in place until further notice. The order allows for case-by-case exceptions only for positions essential to core city services, public safety, or those necessary to prevent greater long-term costs.