Indiana lawmakers seek to undermine Gary-Chicago airport compact, sparking local concerns
A legislative amendment quietly tucked into an Indiana bill has triggered strong pushback from Gary Mayor Eddie Melton and raised alarms about the future of the Gary/Chicago International Airport (GCIA) and its vital partnership with the City of Chicago.
In a sharply worded statement issued on April 25, Mayor Melton expressed his “deep concern” over language included in House Bill 1142—and separately in HB1001, the state budget bill—that directs the eventual dissolution of GCIA’s longstanding interstate compact with Chicago. The move, which would be delayed by five years thanks to intervention by the Northwest Indiana legislative delegation, has been criticized as a threat to Gary’s economic development and regional cooperation.
At the heart of the controversy is the interstate compact, a formal agreement between Indiana and Illinois that created a bi-state governance model for GCIA. The compact, approved by both states and authorized by Congress in 1995, allows for coordinated development, funding, and oversight of the airport. Chicago is not a co-owner of the facility but plays an advisory and investment role under the agreement, which recognizes the mutual economic benefit the airport brings to the region.
Interstate compacts are legal agreements between two or more states, used most commonly to manage shared resources or coordinate cross-border infrastructure. They are recognized under Article I, Section 10 of the U.S. Constitution, which requires Congressional approval for such arrangements.
The GCIA compact was one of the few airport-related pacts of its kind at the time it was formed. It reflects the historical collaboration between Gary and Chicago to bolster transportation and commerce in the Calumet Region, and it enabled GCIA to receive increased federal and state funding while strengthening regional logistics and investment strategies.
House Bill 1142, originally introduced to address administrative restructuring in the state’s transportation and aviation sectors, was amended late in the legislative process to include language aimed at dissolving the compact between Indiana and Illinois. The initial version would have mandated an immediate termination. However, after objections by local lawmakers, the effective date was pushed back five years.
Mayor Melton said the effort blindsided his administration, especially after a previous legislative attempt earlier this year to remove his authority over airport board appointments. That measure was introduced before Melton had even exercised his right to appoint members to the GCIA Authority Board—underscoring, he said, a disturbing pattern of state interference in Gary’s local governance.
“This legislative move is especially troubling in light of the growing investment in and around the airport that my administration has been able to accomplish within my first 14 months in office,” Melton said. “One major project, a $40 million development set to begin this year, is expected to bring hundreds of new jobs to Gary and Northwest Indiana.”
It is still unclear which lawmakers championed the amendment to HB1142 or what their full motivations are. Some political observers speculate the move could stem from long-standing skepticism among certain state legislators about Illinois’s involvement in Indiana transportation policy. Others suggest that the dissolution could be driven by competing economic interests, particularly those favoring other airports in Indiana that do not benefit from cross-border cooperation.
There has also been historic political tension between Gary and Indianapolis, particularly around control of assets and governance decisions. Critics of the compact may view the Chicago connection as unnecessary or even a liability, despite the financial benefits it provides.
Mayor Melton warned that severing ties with Chicago could “jeopardize our partnership” and result in the loss of millions in investment and federal funding.
“If enacted as originally intended, we would risk losing millions of dollars in funding from our Compact agreement with Chicago, as well as critical FAA grants that sustain our airport’s day-to-day operations,” he said.
GCIA’s compact is unique in Indiana. No other airport in the state currently operates under an interstate compact or similar formalized partnership with an out-of-state entity. Most airports in Indiana, including Indianapolis International Airport and South Bend International Airport, are governed solely by local or state authorities.
However, the compact has long been viewed as a creative solution to harness the economic power of the Chicago metropolitan region while lifting up Northwest Indiana. GCIA is less than 30 miles from downtown Chicago and sits within the same air traffic corridor, making it an important reliever airport for O’Hare and Midway, especially for cargo operations.
The airport has seen renewed interest in recent years, particularly as logistics and e-commerce have expanded across the region. FedEx and UPS both have facilities at GCIA, and in 2015, the airport extended its main runway to accommodate larger aircraft—an upgrade supported in part by compact-enabled funding.
For now, the threat to the compact has been postponed but not eliminated. Mayor Melton emphasized that his administration will continue to collaborate with Gary’s Common Council, Chicago Mayor Brandon Johnson, and other compact members to safeguard the airport’s future.
“We will not be deterred in our commitment to protecting the economic future of Gary,” he said.
As the airport remains a critical asset for job creation and industrial investment, observers say the fight to preserve the compact could shape the city’s economic trajectory for years to come.