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# Indiana Approves $139 Million to Replace July Gas-Tax Revenue
- URL: https://www.theamericanquorum.com/state-news-indiana-2026-09-16-b/
- Published: 2026-09-16T09:47:07.000Z
- Updated: 2026-09-16T09:47:07.000Z
- Description: Indiana approved nearly $139 million to replace July road revenue lost during its gasoline-tax suspension, including more than $46 million that the comptroller is scheduled to distribute to local governments this week.
- Author: News Desk
- Tags: State News, Indiana

Indiana's State Board of Finance unanimously approved nearly $139 million Tuesday to replace road revenue lost during the state's gasoline-tax suspension, including more than $46 million scheduled for distribution to counties, cities and towns this week.

The board authorized $138,903,493.28 from the State Highway Fund to cover July revenue that otherwise would have come from the gasoline excise and use taxes. The [governor's official announcement](https://events.in.gov/event/gov-braun-continues-to-deliver-on-promise-to-keep-local-governments-whole-during-gas-tax-holiday?ref=theamericanquorum.com) says the comptroller will distribute $46,192,430 to local governments, keeping road and infrastructure budgets whole while motorists continue receiving the tax break.

This is the third reimbursement round. The board previously approved replacement funding for revenue lost from April through June at its July and August meetings. [Indiana Capital Chronicle reported](https://indianacapitalchronicle.com/2026/09/15/indiana-continues-gas-tax-reimbursements/?ref=theamericanquorum.com) that gasoline use-tax collections were suspended in April and the excise tax was suspended the following month as fuel prices rose during the war with Iran.

Both suspensions remain in effect through at least October 6\. Normally, gasoline-tax proceeds are divided between the Indiana Department of Transportation and local governments for road maintenance and repair. Replacing the local share avoids an immediate reduction in money available for those functions, but the state is drawing from highway funds while the taxes remain off.

The fiscal exposure extends beyond Tuesday's local distribution. The [Post-Tribune reported](https://bancodeprofissionais.com/2026/09/15/indiana-again-to-reimburse-communities-for-gas-tax-loss/?ref=theamericanquorum.com) that Indiana normally collects 59.9 cents per gallon in state taxes at the pump and that Gov. Mike Braun plans to ask the General Assembly in January for authority to use state reserves to cover the broader losses. Indiana Capital Chronicle estimates combined local-government and State Highway Fund losses could reach $1.1 billion if the suspension lasts through December 4.

That reserve transfer is not part of Tuesday's approval and remains a future legislative decision. Braun has pointed to roughly $4 billion in state reserves as the intended source. The distinction matters: the board's monthly reimbursement actions protect current local road allocations, while lawmakers will decide how the state ultimately absorbs the larger cost.

State Comptroller Elise Nieshalla said her office is prioritizing the local distributions so critical operations can continue. State Budget Director Chad Ranney, a Board of Finance member, described making local governments whole as a board priority. Treasurer Daniel Elliott also supported the continuation, arguing that state finances allow Indiana to provide temporary fuel-price relief.

Motorists still pay federal gasoline taxes and other pump costs; the suspension applies to Indiana's state gasoline taxes. Fuel prices also move independently of taxes. [AAA's state-price tracker](https://gasprices.aaa.com/?state-gas-price-averages=&ref=theamericanquorum.com) listed Indiana regular gasoline at about $3.59 per gallon Tuesday, below the national average of roughly $4.32 but 17 cents higher than the previous week.

For local officials, the practical next step is receipt of this week's comptroller distribution. For state budget planners, the unresolved issue is how long the tax holiday lasts and whether lawmakers approve Braun's proposed reserve draw when the General Assembly reconvenes.