Indiana Gov. Braun directs state to reimburse local governments for gas tax holiday revenue

Tuesday, June 30, 2026 at 6:39 AM

By Staff report

Indiana Governor Mike Braun is directing his administration to make local governments whole for any gas tax revenues missed while the ongoing energy emergency is in effect.

At the governor’s direction, Secretary Lisa Hershman and the Office of Management and Budget will coordinate with the State Budget Agency and Department of Revenue to calculate the amount necessary to make local governments whole. State Budget Director Chad Ranney will bring the formal request to transfer funds from the State Highway Fund for April and May to the Board of Finance on July 21. Once the transfer is approved, local governments are expected to receive distributions from the Comptroller’s Office within five to seven business days.

“This is only possible because Hoosiers demand commonsense fiscal management, and we've delivered,” said Governor Mike Braun. “We are running government more efficiently and as a result, we have the resources to offer tax relief while supporting local partners.”

“The Comptroller’s Office is committed to serving as a trusted partner to Indiana’s local governments by ensuring these distributions are processed accurately and without delay. We understand the importance of timely revenue distributions, and we remain focused on delivering taxpayer dollars with the transparency, accountability and fiscal stewardship Hoosiers expect,” said Comptroller Elise Nieshalla.

“As State Treasurer, affordability and lowering costs for Hoosiers while providing local units of governments the tools they need to operate has been my primary focus since day one. Governor Braun’s decision to suspend the gas tax was the right thing to do,” said Daniel Elliott, State Treasurer. “This proposal adds to that decision by making local governments whole without negatively affecting Hoosiers. It’s a great example of what sound fiscal policies can accomplish. I look forward to working with the Governor, Comptroller Nieshalla and their teams to get this done.”

Similar requests will be made at the August and September Board of Finance meetings as needed. Local governments are expected to be made whole no later than November 1.