Bill > SB0535

This bill changes how road funding is distributed to counties, cities, and towns in Indiana by shifting from a road mileage-based calculation to a vehicle miles traveled (VMT) calculation. Currently, local road funding is allocated based on the proportion of road and street miles in each jurisdiction. Under the new law, funding will be distributed based on the proportion of vehicle miles traveled in each county, city, or town. The Indiana Department of Transportation (INDOT) is required to establish guidelines for determining vehicle miles traveled, which will be used to calculate funding allocations for both the motor vehicle highway account and the local road and street account. This change affects how money is distributed to local governments for road construction, reconstruction, maintenance, and repair, with the goal of potentially better reflecting actual road usage rather than just road length. The bill specifies that this new method of calculation will take effect on July 1, 2025, and requires INDOT to develop specific procedures for tracking and calculating vehicle miles traveled for each jurisdiction.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/senate/535/details