Bill > HB1085

This bill modifies how road funding is distributed to counties, cities, and towns in Indiana by changing the allocation method from road and street mileage to vehicle miles traveled. Currently, road funding distribution is partially based on the physical length of roads in a jurisdiction, but the bill requires that a larger portion of funding will now be calculated using the total vehicle miles traveled in each county, city, or town. The Indiana Department of Transportation (INDOT) is tasked with establishing guidelines to determine how vehicle miles traveled will be measured. The changes will affect two primary funding sources: the motor vehicle highway account and the local road and street account. By shifting to a vehicle miles traveled metric, the bill aims to more accurately reflect road usage and potentially allocate resources more equitably based on actual transportation demand. The new funding distribution method will take effect on July 1, 2025, giving local governments and INDOT time to prepare for the transition. The bill also makes several technical amendments to existing statutes to support this new methodology, including updating references to road mileage and requiring INDOT to inventory and certify vehicle miles traveled for local road systems.

Transportation and Infrastructure

https://iga.in.gov/legislative/2025/bills/house/1085/details