Gov. Mike Braun announced $84 million in infrastructure grants Tuesday to 147 cities and counties across Indiana.
The matching funds are intended to bolster investment in local bridge and road projects. The state awarded over $165 million in infrastructure grants this year.
Speaking at an event in Crawfordsville, Braun said good roads are essential to supporting economic growth.
"Every one of our counties is going to get attention to the extent maybe they haven't in the past, and infrastructure is the place where it shows up most visibly," he said.
The Community Crossings Grant program is now roughly a decade old and has provided local governments millions to address needed infrastructure improvements. Braun noted he was serving in the state legislature at the time of its passage.
Braun also acknowledged that the state will have to figure out more long-term road funding solutions during the next legislative session.
“We're the crossroads of America,” he said. “We've got more interstates lacing through our state than any other state, kind of per square mile, and that's a whole other issue in terms of how we maintain them and infrastructure and how we raise funds to do it.”
The announcement comes as the state has for months suspended its gas and excise taxes to help ease the cost at the pump. That’s costing the state roughly $140 million every month, money that is used for local and state road projects.
Some lawmakers have raised concerns about what losing those funds could mean for the state long term.
Braun is expected to decide on a final extension of the gas tax holiday in early July.
The governor also announced Tuesday that the state will ensure local governments still receive their portion of the gas and excise taxes — even as they remain suspended.
"Every penny that you had to forego will be replenished and we hope to do the same thing for state road funding as well," Braun said.
The proposal will still need to be approved by the State Board of Finance in late July. Local governments will see the reimbursement by November.
Braun said the reimbursement is only possible because of how well the state has managed its funds.
“We’re running state government efficiently and economic growth is good,” he said.
Kyle Bloyd is a spokesperson for the Indianapolis Department of Public Works. He said the gas tax suspensions have cost the city roughly $8 million so far, and they “appreciate the news” about reimbursement.
“To date, this has not resulted in any changes to our program and no projects have been canceled,” he said. “We look forward to continuing to deliver on a robust construction season this year in Indianapolis.”
Contact Government Reporter Benjamin Thorp at bthorp@wfyi.org
