Indiana's Wetlands Program Falls Behind, and Environmentalists Are Worried

A federal agency has found that Indiana's wetlands program is not following its own rules. The U.S. Army Corps of Engineers reviewed the Indiana Department of Natural Resources' wetlands program in 2025 and said it was 'out of compliance.' That means the program has not been finishing its wetland repair projects on time. The state has collected at least $109 million from landowners to pay for those projects, but many of them have stalled since the program started in 2018.

The Indiana Department of Natural Resources (DNR) runs a program that lets builders pay money instead of directly fixing the wetlands they disturb. That money is supposed to go toward restoring or creating new wetlands somewhere else. The program is called the Indiana Stream and Wetland Mitigation Program. It works under rules set by the federal Clean Water Act and other laws meant to protect natural waterways.

When the Army Corps reviewed the program, it found problems in several areas. These included slow progress on improving wetland sites, delays in delivering credits to developers, and issues with project costs. The Army Corps has now asked the DNR to come up with a plan to fix the problems. The two agencies say they are working together to get projects back on track.

The DNR says it plans to finish all of its approved projects. A DNR spokesperson said three projects are planned for the Northwest Indiana region, called the Calumet Dunes Service Area. Two of those projects are expected to be built in 2027, and the third should be finished in 2028 — as long as the Army Corps approves the plans in time.

Annette Hansen, the head of the Porter County chapter of the Izaak Walton League of America, said she felt sick when she heard about the compliance problems. Her group already completed its own wetland restoration project, so it is not directly affected by the DNR's issues. They created the Frame Family Little Calumet Conservation Area by buying land from a family and restoring it to a healthier natural state. They also removed invasive species — plants and animals that don't belong there and can harm the environment.

Hansen said wetlands do an important job for nearby communities, especially as more land is developed across Indiana. Wetlands act like sponges, soaking up extra rainwater and reducing flooding. 'By creating these spaces, we're helping the community hold water,' she said. She worries that more wetlands will be lost if people keep choosing to build on them without thinking about what's best for the land and communities.

Another expert, Susie McGovern, works for the Hoosier Environmental Council as a water science specialist. She said data centers — large buildings filled with computers and servers — are becoming a major new threat to Indiana's wetlands. Data centers need a lot of land and are being built quickly thanks to a faster permitting process. President Donald Trump's administration has also encouraged data center growth through executive orders that ease regulations.

McGovern explained that wetlands are home to many important species. About 30% of endangered, rare, and threatened species depend on wetlands at some point in their lives. Wetlands also help clean and filter water, refill underground water supplies, and slow down flooding. McGovern hopes that Indiana residents and lawmakers will remember how valuable wetlands are when they make decisions about new development. 'I think there's a lot of economic opportunity in the preservation and conservation of wetlands,' she said.