Heartland Forward defines regional competitiveness as the ability to attract and support businesses, entrepreneurs and human capital while developing strong workforces and vibrant communities. This installment of the Heartland Policy Update explores how states are investing in their communities to attract talent and support business—with the goal of remaining regionally competitive.

Arkansas

Regional economic development activity:

• The Industrial Authorities Expansion Act (SB361) creates local authorities to spearhead the development of industrial parks to attract new industries, especially in logistics and manufacturing. 
• SB422 strengthens Arkansas’ talent pipeline by allowing nonprofits to contribute to the Brighter Future Fund, a scholarship savings initiative administered by the State Treasurer. 
• The state’s comprehensive funding package through SB37 appropriates over $79 million toward economic infrastructure, global business development, rural community grants, workforce training and a $75 million quick-action closing fund—all essential for fostering a competitive business climate. 
• SJR15 proposes a constitutional amendment to allow the formation of Economic Development Districts with flexible governance and investment incentives, positioning Arkansas to attract large-scale projects like data centers and lithium processing facilities. 

Indiana

Business costs and development incentives: 

• SB1 raises the business personal property tax exemption from $80,000 to $2 million and eliminates the 30% depreciation floor for new equipment, significantly lowering operating costs for capital-intensive industries. 
• HB1001 increases the cap on economic development tax credits from $250 million to $300 million annually, giving the state more room to support site redevelopment, infrastructure and business attraction. 
• In a forward-looking move, HB1007 introduces a 20% tax credit for manufacturers of small modular nuclear reactors, advancing Indiana’s position in the clean energy and high-tech manufacturing ecosystem. 

Illinois

This legislative session, Illinois’ FY2026 state budget allocated $500 million in site-readiness grants—funds designed to prepare government-owned land for private investment and economic development—with a broader focus on future-facing industries. Additionally, the state  supported advanced manufacturing incentives, R&D tax credits and rural development programs through the Department of Commerce. Another $200 million is dedicated to repurposing unused public buildings, which unlocks space for new business growth. 

Mississippi

Workforce training with regional economic priorities:

• HB1434, the AGENTS of Excellence Program Act, requires regional universities to develop new degrees tailored to local labor market needs, particularly in technical and healthcare fields. 
• SB2021 passed during a special session this year, and appropriates more than $70 million across career coaching, training funds, youth programs and regional partnerships. 

In addition to the legislative packages outlined above, other heartland states have pursued initiatives tailored to particular sectors or designed to bolster workforce development in targeted regions.

• Alabama: Passed SB304 and SB313 to finance energy infrastructure and drive industrial development through the new Alabama Energy Infrastructure Bank.
• Kansas: Modernized taxes, grants and education policy to boost business climate and expand career pathways via HB2231, HB2304 and SB166.
• Kentucky: HB54 allows hands-on job training like internships and co-ops to count toward trade licensure—the certification or credentialing process required to work in skilled trades such as plumbing, electrical work and HVAC—encouraging entry into high-demand fields.
• Oklahoma: Passed SB662, SB1256 and SB249 to strengthen workforce programs, vocational education and tourism-driven economic development. 
• Texas: SB1535 establishes a statewide nuclear energy workforce program. 
• Wisconsin: AB235 creates a grant program to support workforce-aligned literacy initiatives through regional nonprofits and community partners. 

These legislative highlights represent just a sample of the many efforts underway across the heartland to strengthen regional competitiveness. From tax reform and infrastructure investment to workforce development and talent pipeline support, states are taking steps to attract businesses, empower communities and fuel long-term economic growth. Such investments reflect the momentum building across the region and the shared commitment to ensuring the heartland remains a powerful driver of national and global economic success.