Build Indiana Council Warns of State Road Funding Crisis

INDIANAPOLIS — State transportation leaders are commending Governor Mike Braun for extending Indiana’s gas tax suspension through September 5, 2026, while issuing an urgent warning about the long-term future of the state’s roads and bridges.

Organizations including the Build Indiana Council (BIC), Indiana Constructors, Inc. (ICI), and ACEC Indiana acknowledged that the tax holiday—first enacted in April 2026—has delivered needed financial relief to Hoosier families during the busy summer travel season. However, industry experts caution that Indiana is approaching a critical financial turning point.

The tax suspension has temporarily reduced state road and bridge funding by approximately $533 million through July. While Governor Braun has pledged to backfill those missing funds—demonstrated in part by June’s $84 million release in Community Crossings grants to 147 local communities—infrastructure advocates stress that temporary fixes will not cover upcoming long-term needs.

“We’d like to thank Governor Braun for his leadership in helping Hoosiers save money and his commitment to our state’s roads and bridges. We also appreciate his pledge to backfill funds lost due to the gas tax suspension,” said Brian Gould, Executive Director of the Build Indiana Council. “At the same time, Indiana must confront the reality that we are approaching a fiscal cliff in transportation infrastructure that threatens years of progress. We must continue to invest if we want to keep moving forward.”

A landmark 2017 legislative funding package helped transform Indiana into a top-rated logistics hub, nearly doubling the percentage of state pavement in “good” condition and keeping average vehicle repair costs from rough roads at just $230 per year—far below the $725 national average.

However, nearly a decade later, inflation and shifting fuel consumption patterns mean existing revenue sources are no longer keeping up. Recent estimates show:

Local Roads: The Indiana Local Technical Assistance Program (LTAP) reports that local roads need $1.2 billion in new annual funding just to preserve current conditions, or $2 billion annually to make improvements.

State Highways: INDOT estimates state roads and bridges require an additional $1.2 billion annually.

Without new, sustainable, and diversified revenue models, transportation officials warn that Indiana’s construction workforce will soon be restricted to basic maintenance rather than expanding the road networks vital to the state’s economy.