# Indiana gasoline tax suspension and road funding

> Live situation record from CLSTR: https://clstr.news/situations/indiana-gasoline-tax-suspension-and-road-funding
> Updated: 2026-08-18T15:35:56.000Z. Sources: 8. Developments: 2.

Governor Mike Braun declared a statewide energy emergency in Indiana, reinstating a suspension of gasoline usage and excise taxes through September 5. The decision was driven by global oil supply disruptions, including maritime drone battles in the Black Sea and Canadian wildfires affecting oil sands. To maintain infrastructure projects, the administration utilized the state’s reserve balance to fund road and bridge work normally supported by the gas tax.

To address the revenue gap created by the suspension, the Indiana State Board of Finance approved over $130 million in reimbursements to state and local road programs. These funds, drawn from the State Highway Fund, are intended to ensure that local communities do not have to cover the funding deficit caused by the tax holiday. The largest portion of this reimbursement is directed to the Motor Vehicle Highway Account, with additional funds allocated to various highway, road, and street funds.

## Timeline

### 2026-08-18: Indiana approves $130M to replace road funding lost during gas tax holiday

Indiana officials approved $130.45 million in reimbursements to state and local road funds to offset revenue lost during Governor Mike Braun’s gasoline tax suspension.

8 sources. https://clstr.news/cluster/indiana-approves-130m-to-replace-road-funding-lost-during-gas-tax-holiday

### 2026-08-06: Indiana Governor Mike Braun Extends Gas Tax Holiday Amid Global Fuel Disruptions

Indiana Governor Mike Braun extended the state gas‑tax holiday through Sept 5, citing Russia‑Ukraine maritime disruptions and Canadian wildfires, and pledged to use reserve funds for road projects while eyeing‑

5 sources. https://clstr.news/cluster/indiana-governor-mike-braun-extends-gas-tax-holiday-amid-global-fuel-disruptions

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Cite as: Indiana gasoline tax suspension and road funding. CLSTR, https://clstr.news/situations/indiana-gasoline-tax-suspension-and-road-funding
