Indiana officials say federal transportation funding – created by the Biden infrastructure bill last year – will help add to the state’s already robust road funding plans.
Indiana passed its own infrastructure bill in 2017. By raising gas taxes and BMV fees, the state established a 20-year, fully-funded road construction plan.
Gov. Eric Holcomb said the federal infrastructure package will deliver billions to Indiana, starting with about $200 million this year.
“And this is going to help us – kind of the icing on the top or the cherry on the top,” Holcomb said.
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Two other factors impacting Indiana’s road funding plans? Gas prices and inflation. Inflation is driving up costs for projects, while Indiana Department of Transportation Commissioner Mike Smith noted that higher gas prices means more revenue going to infrastructure.
“The good news we’ve got on gas prices is not overcoming the amount of inflation that we’ve got,” Smith said.
Smith said higher prices are creating a challenge for his agency. But he still feels Indiana’s road plans are in a good place.