At an affordability-focused news conference in Indianapolis on Thursday, Governor Mike Braun announced he is extending his suspension of Indiana’s gas taxes for another 30 days, while arguing that strong economic growth and conservative spending have given the state room to provide relief to Hoosier families.
“Affordability is my top priority,” Braun said, touting what he described as “the cheapest gas in America” under his administration. “I am once again extending these gas tax savings to make life more affordable for Hoosier families. Hoosiers will be able to celebrate 250 years of American independence this Fourth of July with the cheapest gas in America.”
Braun’s move continues the suspension of both the Gasoline Usage Tax and the Gasoline Excise Tax for an additional month. He said this comes as part of a broader affordability agenda made possible by what he portrays as an unusually strong fiscal position for the state.
Braun told reporters that Indiana’s unemployment rate has dropped from 4.4% to 3.3%, and that the state’s economy is growing faster than neighboring Midwestern states, including Ohio, Illinois, Kentucky, and Michigan. He said average wages tied to economic development projects have climbed from about $36 an hour to nearly $44, even as the state has cut back its reliance on economic incentives to roughly one‑third of prior levels.
According to Braun, the decision to suspend gas taxes has not put the state or local governments at risk. He said Indiana forwent about $52 million from the use tax and roughly $92 million from the excise tax, but added that increased revenues have already more than covered those amounts.
This week, Braun directed his administration to make local governments whole for any gas tax revenues missed while the ongoing energy emergency is in effect, saying “we are running government more efficiently and as a result, we have the resources to offer tax relief while supporting local partners.”
The governor also used the event to preview larger debates looming at the Statehouse. He pointed to rising costs for steel and concrete, which he said are up about 50%, as a major challenge for long‑term road funding. Traditionally, major infrastructure in Indiana has been financed through user fees like fuel taxes, but Braun acknowledged that lawmakers are now openly discussing whether to tap general revenues for infrastructure for the first time.
He praised the Community Crossings program, which funds local road projects in rural counties and small towns, calling it the most popular state project he’s aware of and indicating he would like to expand it in the next budget.
Braun argued that Indiana is “generating better results for less money,” saying that efficient management, growing surpluses, and strong economic development have created room not only for temporary tax relief like the gas tax suspension, but also for broader discussions about tax cuts, early childhood education investments, and long‑term infrastructure needs.
