Written from press release

INDIANAPOLIS — August 18, 2026

The Indiana State Board of Finance approved a second round of reimbursements Tuesday to replace road funding lost during Gov. Mike Braun’s temporary suspension of state gasoline taxes.

The state will distribute approximately $130.45 million to transportation funds for revenue that would have been collected from June 1 through June 30, according to the Indiana State Comptroller’s Office.

Counties, cities and towns will receive a combined $43.8 million. Payments are expected to reach local governments within two to three days.

The reimbursements will support the Motor Vehicle Highway Fund, Local Road and Street Fund and Local Road and Bridge Matching Fund. Amounts distributed to individual communities will be calculated using the same formulas employed for regular monthly road-funding distributions.

“Our office is committed to processing these reimbursements quickly and with accuracy,” State Comptroller Elise Nieshalla said in a statement. “This second distribution reflects the additional days included in the reimbursement window, providing local governments with the full roadway funding they would have collected during that time.”

Indiana road funding relies heavily on revenue generated by the state’s gasoline excise tax and gasoline use tax. Collections were temporarily suspended under the gas tax holiday, reducing revenue that otherwise would have been directed to state and local transportation accounts.

The State Budget Agency and Comptroller’s Office calculated the amount of lost revenue using Indiana Department of Revenue data. The Board of Finance then authorized the transfers to keep local governments from losing road funding during the suspension.

State Treasurer Daniel Elliott said Indiana’s financial position allows the state to maintain local infrastructure funding while providing drivers with temporary relief at the pump.

Additional reimbursement requests are expected to be considered during future State Board of Finance meetings. Other Motor Vehicle Highway and Local Road and Street revenue distributions will continue on their regular schedules.