Indiana Counties Face New Road Funding Options

Jan. 29, 2025
House Bill 1461 proposes tolling, fee increases and changes to grant allocations

Local governments in Indiana could soon pick from several ways to self-fund transportation infrastructure but won’t get any more financial aid directly from the Statehouse. 

“We need investment and assistance from the state, but this legislation doesn’t include it,” said Ryan Hoff, government affairs director and general counsel for the Association of Indiana Counties. He was one of approximately two-dozen witnesses who testified before the House’s Roads and Transportation Committee on Monday. 

House Bill 1461 changes allocations and adds requirements for the popular Community Crossings Matching Grant Program, cracks down on economic development incentives and looks towards tolling possibilities. 

Author State Rep. Jim Pressel called his proposal “37 pages of options.” 

“There’s some really good things in here, there are some things that are maybe not so great, but we need a conversation on: is this good policy?” he told the committee. 

Motor fuel taxation yields eight of every $10 that fund roads and bridges for both the Indiana Department of Transportation (INDOT) and local government. But as motorists upgrade to more fuel-efficient vehicles or use electric vehicles, there is less money to work with. 

INDOT Legislative Director Aaron Wainscott said his agency has lost out on $1 billion already and has had to postpone 300 projects. 

Residents could see new fees tacked onto their Amazon, DoorDash and other delivery orders. 

The legislation would empower counties to impose fees on retail delivery. Purchases not subject to sales tax would be exempt. 

Source: Daily Journal, Governing.com

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