INDIANAPOLIS — Indiana's State Board of Finance has approved payments to local governments to make up for revenue lost during the gas tax holiday in April and May.
This comes after Governor Mike Braun's suspended the Gasoline Excise Tax and the Gas Use Tax in an effort to lower costs for Hoosiers at the pump.
Indiana currently has the cheapest gas prices in the country, according to AAA, even as national averages near $4.
However, officials say the gas taxes normally provide steady funding for roads and infrastructure.
Last month, I directed my administration to make local governments whole for any gas tax revenues missed throughout the duration of the ongoing energy emergency.
— Governor Mike Braun (@GovBraun) July 21, 2026
Today, the Indiana Board of Finance unanimously approved a transfer of funds to deliver on that promise.
Over the…
Now, the State Comptroller's Office will send out reimbursements totaling more than $121 million to the Motor Vehicle Highway Fund, the Local Road and Street Fund, and the Local Road and Bridge Matching Fund.
About $38 million of that will go directly to local governments.
The distribution amount broken out for each local unit can be found here.
“Local governments depend on these dollars to maintain essential, budgeted operations and the reimbursements will be received in their bank accounts within 2 to 3 days,” said Comptroller Elise Nieshalla.
Reimbursements for other affected months will require additional Board approval. All payments are being issued Tuesday and expected to be completed by November 1.
The gas tax holiday is curently in place until August, after a third extension.
