Indiana becomes first state to approve statewide interstate tolls amidst declining gas tax revenue

INDIANA – Traveling Indiana’s interstates could soon become more expensive, as Governor Mike Braun recently signed a groundbreaking bill into law that permits tolls on all interstate highways across the state. This makes Indiana the first state in the nation to approve such widespread interstate tolling without requiring additional legislative approval for each specific implementation.

Under the provisions of House Bill 1461, the Indiana Department of Transportation is now permitted to request waivers from the Federal Highway Administration to implement tolls on any interstate highway within Indiana’s borders.

State Representative Jim Pressel

According to Indiana Republicans, including State Representative Jim Pressel of Rolling Prairie, who introduced the bill, the measure was enacted due to stagnating revenues from gas taxes. Historically, gas taxes have been a primary source of funding for new road construction and maintenance in the state.

Senator Mike Crider

“The current way we fund roads just does not work anymore,” said Sen. Mike Crider, according to Axios. “The gas tax is not a viable method anymore. We have to leave all options on the table, which includes giving the government the option of tolling if that’s what we decide”. Experts note that increased fuel efficiency and the growing use of electric and hybrid vehicles are leading to lower annual gas tax revenues, prompting states to seek alternative methods for roadway maintenance. A study cited by Axios suggested that tolling Indiana’s interstates could generate an estimated $40 billion in revenue over a two-decade period.

Currently, the only toll road in Indiana is I-80/90, which spans the northern part of the state. There has been no official announcement regarding when the new statewide tolls will be implemented.