Indiana Approves $130 Million in Gas Tax Reimbursements

The Indiana State Board of Finance unanimously approved the transfer of $130.45 million from the State Highway Fund to replace revenue lost in June due to a gas tax holiday. Initiated in April by Mike Braun following fuel price surges caused by a conflict between the United States and Iran, the tax holiday suspended gasoline use and excise taxes to provide relief to residents.

Of the total approved funds, $72.17 million will return to the State Highway Fund for the Indiana Department of Transportation, while approximately $58.3 million is designated for local governments. Specifically, the Indiana State Comptroller’s Office will distribute $43.8 million to counties, cities, and towns over the coming week. The broader transfer included $89.39 million for the Motor Vehicle Highway Account, $26.58 million for the Highway, Road and Street Fund, and $14.47 million for the Local Road and Bridge Matching Fund.

Governor Braun stated that these reimbursements are critical for communities recovering from severe storms and flooding that caused widespread damage last week, as the funds allow local governments to maintain infrastructure repairs and cleanup efforts. State officials previously estimated that the tax holiday would reduce combined state and local revenue by $533 million.