Indiana has become the first state in the nation to authorize tolling on all interstate highways, following the signing of House Bill 1461 by Gov. Mike Braun.
The new law gives the Indiana Department of Transportation the authority to seek waivers from the Federal Highway Administration to implement tolls on any interstate within state borders—without requiring further legislative approval.
Supporters of the bill, including Republican lawmakers like State Rep. Jim Pressel and Sen. Mike Crider, say the measure addresses declining revenue from the state’s gas tax, which has traditionally funded road maintenance and construction.
“The current way we fund roads just does not work anymore,” Crider told Axios. “The gas tax is not a viable method anymore. We have to leave all options on the table.”
Recent estimates show that statewide tolling could generate up to $40 billion in revenue over the next 20 years, according to a report from Axios. The Reason Foundation found that Indiana is the first state to approve tolling for all of its interstates.
With the rise of fuel-efficient, hybrid and electric vehicles, experts warn that gas tax revenues will continue to decline, prompting states to explore alternative funding models.
Some transportation groups have proposed a vehicle miles-traveled tax to more directly tie road use to infrastructure costs.
Source: Axios, NBC Chicago, Local12news.com
