Governor extends Indiana gas-tax suspension 30 days, says state will make local governments whole

The Governor announced he will extend Indiana’s suspension of the gas tax for another 30 days, saying the step is meant to ease costs for Hoosier families during heavy summer travel. “I’m going to do it for another 30 days,” the Governor said, adding that any extension beyond that would require a special session or authority from the General Assembly.

The Governor recapped earlier actions: he suspended the gas tax on the usage side on April 1, expanded savings in May by including the excise tax and extended the policy again in June. He said the moves helped produce what he called “the least expensive gas in the country” for residents.

Asked how the state will cover reimbursements to local governments, the Governor said reserves and higher-than-expected revenues will cover the cost. “It’s not going to cost us anything in the sense that we’ve got reserves that are there for that intended purpose,” he said, and later confirmed localities “are going to be made whole.”

Pressed for dollar figures, the Governor said the state forewent about $52 million in use-tax revenue and about $92 million in excise-tax revenue; the administration says improved revenue collections and operational savings will cover those amounts.

The Governor connected the policy to broader economic performance, saying unemployment has fallen from 4.4% to 3.3% and that wages have increased “from 36 to nearly $44” (the transcript does not specify units for those wage figures). He framed the tax actions as one of several tools the state is using to provide relief while maintaining infrastructure and other priorities.

A reporter asked whether the Governor would seek a special legislative session if gas prices remain high. The Governor said he was monitoring global market dynamics — referencing tensions in the Middle East — and that any action requiring authority beyond his unilateral powers would need legislative engagement.

The Governor said this 30-day extension is the last he can enact unilaterally; further extensions would require a special session or legislative approval. The briefing ended with the Governor reiterating the goal of making life easier for families during the summer travel season.