All About Indiana’s SB 177:

Introduction

The rapid growth of digital learning has transformed how schools operate, store information, and deliver instruction. Indiana, like many states, has expanded its educational technology ecosystem significantly in recent years. With this growth, however, has come an increase in cyber threats targeting school districts—ransomware attacks, phishing attempts, unauthorized access to student information systems, and breaches within third-party learning platforms. These threats have created a pressing need for stronger cybersecurity standards and modernized data privacy protections.

Indiana’s Senate Bill 177 (SB 177) was developed to address these growing risks. The legislation strengthens cybersecurity expectations for districts and introduces clear, enforceable guidelines for how student information must be stored, shared, and protected. SB 177 is not only a compliance requirement; it represents a shift toward more responsible digital practices across Indiana’s K–12 system. District leaders, IT administrators, educators, and parents all play a role in this effort, and understanding SB 177 is essential for maintaining trust and protecting student safety in an expanding digital world.

Understanding What SB 177 Covers

SB 177 focuses primarily on two major areas: cybersecurity requirements for schools and student data privacy protections. These components are closely connected, since data security often depends on the strength of a district’s cyber defense infrastructure. Indiana’s lawmakers built SB 177 with the understanding that student data is highly sensitive and that district technology systems are increasingly interconnected with external vendors, cloud platforms, and digital instructional tools.

At its core, SB 177 requires school districts to adopt recognized cybersecurity frameworks and maintain up-to-date security practices. It also places strict obligations on how districts manage personal information about students and staff. By aligning district practices with national standards such as the NIST Cybersecurity Framework, the bill ensures greater consistency and accountability across the state. The legislation also mandates regular evaluations and annual cybersecurity training for employees, ensuring that cybersecurity is acknowledged not as a technical concern, but as a daily operational responsibility.

Why Indiana Implemented SB 177

The need for SB 177 became evident as cyberattacks against schools nationwide continued to escalate. Schools hold an enormous amount of valuable information, including academic records, demographic data, health history, behavioral profiles, and family contact information. Unfortunately, many educational systems operate with limited cybersecurity budgets, aging hardware, and small IT teams. This mismatch creates a perfect opportunity for cybercriminals.

Indiana also experienced rapid adoption of educational technology tools during and after the pandemic. Each new application, platform, or vendor introduced additional opportunities for data exposure. Parents increasingly expressed concern about how schools and vendors were managing their children’s information. SB 177 responds directly to these concerns by increasing transparency, establishing clear restrictions on vendor data use, and promoting safer data-handling practices. It also ensures that districts are prepared to identify risks early, respond quickly to incidents, and improve their defenses over time.

Cybersecurity Expectations Under SB 177

Under SB 177, districts are required to adopt a cybersecurity framework that provides structure and consistency to their security practices. Many districts choose NIST CSF or CIS Controls because these frameworks cover risk identification, threat protection, incident detection, response planning, and recovery processes. The framework requirement moves districts away from ad-hoc cybersecurity strategies and toward formal, repeatable processes that are less dependent on individual staff members.

Training is another essential requirement. Every school employee—teachers, principals, administrative staff, office workers, substitutes, and contracted personnel—must complete cybersecurity training annually. This requirement acknowledges that most breaches begin with human error, such as clicking a phishing link or mishandling sensitive information. SB 177 ensures that all staff members understand their responsibilities in preventing incidents and reporting suspicious activity.

Incident reporting rules also play a central role in SB 177. When a breach or attempted breach occurs, districts must promptly notify appropriate authorities and follow a structured response plan. This includes documenting what happened, assessing the impact, communicating with stakeholders, and following state reporting guidelines. SB 177 ensures that no district hides or delays reporting an incident involving student data or system compromise. This transparency supports statewide visibility into emerging threats.

Data protection expectations are also reinforced. Districts must establish clear rules governing how long data is stored, how it is encrypted, who may access it, and how it must be deleted once it is no longer needed. Access permissions must be aligned to job roles, and sensitive data must remain shielded from unauthorized users. These safeguards apply both to internal district systems and to any third-party vendor or service that stores or processes student data.

Vendor and Third-Party Responsibilities

A significant portion of student information now flows through third-party educational applications, cloud-based tools, and learning platforms. SB 177 requires vendors to meet strict data privacy and cybersecurity expectations. Vendors must sign data privacy agreements showing they are committed to protecting student information. They may not sell student data, use it for marketing, or share it with unauthorized third parties. SB 177 makes clear that student data belongs to the district—and ultimately to the families served—rather than to external software companies.

If a vendor experiences a breach or technical failure affecting student information, it must notify the district immediately. Districts, in turn, must have procedures for responding to and reporting vendor incidents. SB 177 also requires schools to keep an updated list of all approved applications used by teachers and students. This transparency helps families understand which programs interact with student data and ensures that every application used in classrooms is properly vetted.

How SB 177 Impacts Indiana Districts

For IT departments, SB 177 introduces more structured responsibilities. Technology teams must manage secure access controls, maintain endpoint protection, monitor network activity, and ensure systems are patched and updated. They must also document cyber incidents, oversee vendor compliance, and administer cybersecurity training platforms. Many districts will require additional tools or automation to meet these expectations consistently.

District administrators must take an active leadership role. SB 177 requires decision-makers to support training compliance, budget for cybersecurity needs, approve technology policies, and maintain communication during incidents. Administrators must also ensure transparency with families when student data is involved. SB 177 makes cybersecurity a leadership responsibility, not just an IT concern.

Teachers and school staff members also experience changes. They must follow secure digital behaviors, use district-approved tools, protect their login credentials, and avoid unauthorized digital platforms. Most importantly, they must report suspicious activity immediately to prevent escalation of potential attacks.

Parents benefit from the heightened protections. Families gain greater confidence knowing that their children’s information is handled under stricter rules, that schools must report incidents promptly, and that vendors are regulated more closely. SB 177 strengthens the trust between schools and families by ensuring responsible digital practices at all levels.

Preparing for SB 177 Compliance

Districts preparing for SB 177 should begin by conducting a cybersecurity gap analysis to identify areas where current practices fall short of the law’s requirements. Policies governing data handling, staff responsibilities, acceptable use, and digital resource approval should be thoroughly reviewed and updated. District leaders must also evaluate the security of existing systems and determine whether additional investments are needed to address vulnerabilities.

Adopting more modern cybersecurity technologies is often necessary. Many districts will require updated email security systems, stronger endpoint protection, improved identity and access management solutions, and tools capable of monitoring networks in real time. Vendor oversight will require renewed attention, and schools must review each application used in classrooms to confirm compliance with SB 177.

Finally, incident response planning is essential. Districts need detailed procedures that describe how to handle cyber incidents, who to notify, and how to document each event. Regular testing of disaster recovery and incident response systems ensures that staff are prepared when real threats occur. Compliance is not simply a matter of documentation—it requires practical readiness.

Conclusion

Indiana’s SB 177 reflects a growing recognition that K–12 cybersecurity and data privacy can no longer be left to chance. By establishing stronger protections, clearer expectations, and more consistent oversight, the legislation strengthens digital safety across Indiana schools and supports a more trustworthy educational technology environment. Districts that actively embrace SB 177 will not only remain compliant but will build more resilient, secure, and dependable systems for students, educators, and families. Achieving this requires strategic planning, modern tools, staff engagement, and continuous evaluation.

For districts seeking a streamlined approach to SB 177 compliance, CyberNut offers comprehensive K–12 cybersecurity support, including automated threat protection, engaging staff training, real-time device monitoring, and tools designed to improve vendor oversight and data protection. By adopting CyberNut, districts can simplify compliance, strengthen their cybersecurity posture, and ensure that student data remains secure. To learn more or request a demonstration, visit CyberNut.com.