Indiana Leaders Debate How Long Gas Tax Relief Should Last

STATEWIDE — Indiana’s gas tax holiday is scheduled to end in less than two weeks, but state leaders are discussing whether it could be extended into early August.

Governor Mike Braun says he is reviewing the option while also considering its impact on infrastructure funding.

State lawmakers say the governor may have authority to extend the tax suspension for a limited time, but further discussion with the legislature would still be part of the process.

There are also ongoing discussions about how to replace the revenue used for road funding, including the possible use of the state’s Rainy Day Fund.

Officials estimate the state is currently collecting less in road funding during the tax holiday, which reduces money available for maintenance and repairs.

At the federal level, Congress is considering a proposal to suspend the federal gas tax, which could lower prices by about 18 cents per gallon for Hoosiers. Lawmakers say the idea remains under review, with questions about how highway funding would be maintained.

Congress is in recess through May 29.