Distributions underway to repay local governments for gas tax suspension

By: Mackenzi Klemann

Outlets: Indiana Capital Chronicle

Published: July 21, 2026

Words: 572

Last Updated: 4 weeks, 2 days ago

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Indiana will begin distributing highway funds to local governments this week to cover losses from the state’s gas tax suspension.

The State Board of Finance met Tuesday morning to authorize the transfer of $121 million from the State Highway Fund to local governments through the Motor Vehicle Highway Account, the Highway Road and Street Fund, and the Local Road and Bridge Matching Fund.

The transfer covers the portion of foregone revenue from April 8 …

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