Gov. Braun calls for state to repay local governments for gas tax holiday revenue
Jun 30, 2026
INDIANAPOLIS (WISH) — Governor Mike Braun has ordered his administration to repay local governments for gas tax money lost after he suspended the state gas tax over the past few months in response to high gas prices.
Braun declared an energy emergency and suspended the state gas tax beginni
ng in April to help ease costs for drivers. The suspension has since been extended. As of this week, Braun has not yet made a final decision on whether to extend the holiday further.
RELATED: Braun says no decision yet on gas tax holiday extension
While the suspension gave drivers relief at the pump, it also meant local governments stopped receiving gas tax revenue they rely on. According to a press release from the Governor’s office, Braun is now directing the state to make those governments whole.
The Governor’s office says Secretary Lisa Hershman and the Office of Management and Budget will work with the State Budget Agency and Department of Revenue to calculate how much needs to be repaid.
According to the release, State Budget Director Chad Ranney will request a transfer of funds from the State Highway Fund, covering April and May, at the July 21 Board of Finance meeting. Once approved, local governments will receive payments 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,” Braun said in the release. “We are running government more efficiently and as a result, we have the resources to offer tax relief while supporting local partners.”
Comptroller Elise Nieshalla said her office is committed to getting the money out quickly and correctly.
“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,” Nieshalla said. “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.”
According to the Governor’s office, similar reimbursement requests will be made at the August and September Board of Finance meetings if needed. All local governments are expected to be fully repaid by November 1.
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