# Indiana HB 1461: Road funding. Indiana HB 1461, Road funding., is a First Regular Session 124th General Assembly (2025) House bill sponsored by Jim Pressel (Republican); status signed, last action 2025-05-01 (Signed by the Governor); PRIA reads it as touching household money (as of 2026-10-17). - Canonical: https://policyrisk.com/state-bill/IN-HB1461-2025 - As of: 2026-10-17 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Indiana HB 1461 - State: Indiana - Session: First Regular Session 124th General Assembly (2025) - Title: Road funding. - Status: signed - Chamber: House - Introduced: 2025-01-21 - Last action: 2025-05-01, Signed by the Governor - Sponsor: Jim Pressel (Republican) - Cosponsors: 7 - Subjects: roads and transportation, the senate, homeland security and transportation, appropriations - Touches household money: yes - Roll calls: 6 (207 yes, 163 no in all) - Economic provisions PRIA read: 13 ## Summary Makes various changes to provisions concerning roads and transportation. Allows a taxpayer to claim a credit against state income tax liability for certain qualified railroad expenditures and qualified new rail infrastructure expenditures. Specifies the amount of the credit. Limits the total amount of credits that may be allowed in a state fiscal year and provides for the expiration of the credit. Increases the maximum rate a county containing a consolidated city (consolidated city) may impose for the county wheel tax and the county vehicle excise tax and specifies the purposes for which the proceeds of those taxes must be appropriated. Beginning in 2026, lowers the percentage of funds distributed to counties, cities, and towns (local units) from the motor vehicle highway account that must be used for construction, reconstruction, and preservation of a local unit's highways if certain conditions related to pavement quality are satisfied. Amends provisions pertaining to the Indiana finance authority's authorization to issue revenue bonds or notes, including grant anticipation revenue bonds or notes, to finance highway and road construction projects. Allows the Indiana department of transportation (department) to submit a request to the Federal Highway Administration for a waiver to toll lanes on interstate highways. Provides that, if a request for a waiver to toll lanes on interstate highways is granted, the general assembly is not required to enact a statute before tolling may occur. Allocates responsibility for bridges in a county between that county and a municipality based on the size and location of the bridge. Allows a local county road and bridge board to undertake low water crossing projects. Requires the department to ensure that information regarding funding sources for low water crossing projects is made available to county boards of commissioners and county highway departments. Provides that money in the local road and bridge matching grant (matching fund) must be allocated, transferred, and distributed for specified purposes. Specifies the timing of those allocations, transfers, and distributions. Imposes conditions on the allocations, transfers, and distributions made from the matching fund, including, in state fiscal years beginning after June 30, 2027, limitations on the ability of a local unit to apply for a grant in certain circumstances. Allows local units to use grants from the matching fund for low water crossing projects. Reduces the required local matching amounts and increases the population thresholds that apply to certain local units, if the department approves a grant from the matching fund. Restates a provision allocating 50% of the amount available in the matching fund to local units with a population of less than 50,000. Increases the speed limit on Interstate Highway 465. Requires all townships to annually adopt a capital improvement plan, which must include the balance of all unrestricted funds that exceed the township's budget for the following year. Provides that a township must transfer 30% of the amount of the balance of all unrestricted funds that exceed the township's budget for the following year to the township roads and infrastructure fund. Requires a township board to adopt a resolution if favor of providing money for the improvement and maintenance of roads and infrastructure within the township before a township transfers money for such projects. Provides, for purposes of the provisions regarding township capital improvement plans and township roads and infrastructure funds, that unrestricted funds are cash reserves that are not obligated, committed, encumbered, or restricted for specified purposes. Urges the legislative council to assign to the interim study committee on roads and transportation the study of appropriate road funding formulas. Makes conforming changes. ## Bill overview: provisions PRIA read - Interstate 465 maximum speed reaches 65: benefit, low. Beginning July 1, 2025, the maximum lawful speed on Interstate 465 is 65 miles per hour. A lower speed still applies where a special hazard requires it or another lower limit is established. Exceeding the applicable maximum remains a Class C infraction. - Private partners can support shared roads: benefit, low. Beginning July 1, 2025, Indiana government bodies can make public-private agreements for shared arterial road projects. Agreements can cover long-term development, design, building, rebuilding, upkeep, repairs, financing, and land acquisition costs. The law adds a project-delivery option without se… - Road grants cover dangerous water crossings: benefit, low. Beginning July 1, 2025, counties and municipalities can seek road and bridge grants to reduce danger from low-water crossings. This adds safety projects alongside eligible road and bridge repair or capacity projects in local road management plans. The transportation department must favor eligible p… - Temporary tax credit for railroad investment: benefit, low. Beginning January 1, 2025, certified taxpayers get a credit worth 50% of eligible railroad spending. Eligible applicants include Class II and III short-line railroads operating in Indiana. Owners or lessees of sidings, industrial spurs, or industry tracks can qualify through a nearby short-line rai… - Higher vehicle tax caps in Marion County: cost, medium. Beginning July 1, 2025, a consolidated-city county with an approved road management plan can adopt higher vehicle taxes. The fixed vehicle surtax ceiling rises from $50 to $150; the percentage option stays at 2%–20%, with a $7.50 minimum. The wheel tax can range from $5 to $240 by vehicle class or… - Road rules reach more small towns: cost, low. Beginning July 1, 2025, the affected road-law chapter covers municipalities with at least 5,000 people, down from 15,000. Municipalities with 5,000–14,999 people are newly subject to its requirements. This changes local government obligations without setting a household payment. - Local bridge duties and funding expand: mixed, low. Local governments can use cumulative bridge funds for small structures, culverts, and grade separations under their control, besides bridges and approaches. Beginning July 1, 2025, counties must build, rebuild, maintain, and inspect qualifying non-state bridges longer than 20 feet, including inside… - Road ratings shape local spending rules: mixed, low. Beginning July 1, 2026, qualifying counties, cities, and towns can lower their required road-building and preservation share from 50% to 40%. This applies to Motor Vehicle Highway Account money and excludes consolidated cities and counties containing them. Local roads must use PASER ratings, averag… - Judgment money supports Kentucky crossing tolls: mixed, low. Beginning July 1, 2025, specified infraction-judgment money must enter a dedicated fund for a qualifying Indiana–Kentucky crossing project. The project must be within a metropolitan planning area. Money can only operate, maintain, repair, replace, or improve that project's tolling system, including… - Road grants set local funding shares: mixed, low. Beginning July 1, 2025, approved road grants require a 20% local match for counties below 55,000 people. Cities and towns below 10,000 people also pay 20%; counties, cities, and towns at or above their thresholds pay 50%. At least half of yearly grant money must go to counties below 50,000 people a… - Townships must plan and fund infrastructure: mixed, low. Beginning July 1, 2025, every township must establish a road and infrastructure fund and adopt an annual capital plan by September 30. Plans must be filed with the state and disclose unrestricted funds above the next year's budget and why they are retained. The specified cash-balance transfer contr… - Interstate toll options retain approval limits: mixed, low. Beginning July 1, 2025, interstate toll lanes require a state transportation decision, the Governor's approval, and a federal waiver. First lanes must be at least 75 miles from an interstate highway or bridge already tolled on July 1, 2017. That spacing limit does not apply to waiver applications m… - State highways gain a tollway path: mixed, low. Beginning July 1, 2025, Indiana's transportation department can designate state highways as tollways with the Governor's approval, without a separate law. Before designation, it must submit a plan to meet current new-highway design standards within five years or less. The department can also transf… ## Sponsors and cosponsors - Sponsor: Jim Pressel (Republican), House - Cosponsor: Blake Doriot (Republican), Senate - Cosponsor: Craig Snow (Republican), House - Cosponsor: Dave Heine (Republican), House - Cosponsor: Doug Miller (Republican), House - Cosponsor: Fady Qaddoura (Democratic), Senate - Cosponsor: J.D. Ford (Democratic), Senate - Cosponsor: Michael Crider (Republican), Senate ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2025-04-17 | House | House concurred with Senate amendments | pass | 68 | 17 | | | 2025-04-15 | Senate | Third reading: passed | pass | 38 | 10 | | | 2025-04-14 | Senate | Amendment #9 (Young M) failed | fail | 2 | 47 | | | 2025-04-14 | Senate | Amendment #11 (Pol) failed | fail | 12 | 35 | | | 2025-04-14 | Senate | Amendment #10 (Pol) failed | fail | 15 | 33 | | | 2025-02-20 | House | Third reading: passed | pass | 72 | 21 | | ## Actions (37) - 2025-05-01: Signed by the Governor (House) - 2025-05-01: Public Law 173 (House) - 2025-04-23: Signed by the President of the Senate (Senate) - 2025-04-22: Signed by the President Pro Tempore (Senate) - 2025-04-21: Signed by the Speaker (House) - 2025-04-17: Motion to concur filed (House) - 2025-04-17: House concurred with Senate amendments; Roll Call 496: yeas 68, nays 17 (House) - 2025-04-16: Returned to the House with amendments (Senate) - 2025-04-15: Third reading: passed; Roll Call 442: yeas 38, nays 10 (Senate) - 2025-04-14: Second reading: amended, ordered engrossed (Senate) - 2025-04-14: Amendment #8 (Brown L) prevailed; voice vote (Senate) - 2025-04-14: Amendment #2 (Freeman) prevailed; voice vote (Senate) - 2025-04-14: Amendment #1 (Crider) prevailed; voice vote (Senate) - 2025-04-14: Amendment #10 (Pol) failed; Roll Call 414: yeas 15, nays 33 (Senate) - 2025-04-14: Amendment #12 (Young M) failed; voice vote (Senate) - 2025-04-14: Amendment #11 (Pol) failed; Roll Call 415: yeas 12, nays 35 (Senate) - 2025-04-14: Amendment #9 (Young M) failed; Roll Call 416: yeas 2, nays 47 (Senate) - 2025-04-14: Amendment #5 (Young M) prevailed; voice vote (Senate) - 2025-04-10: Committee report: amend do pass, adopted (Senate) - 2025-03-27: Committee report: amend do pass adopted; reassigned to Committee on Appropriations (Senate) - 2025-03-27: Senator Ford J.D. added as cosponsor (Senate) - 2025-03-25: Senator Qaddoura added as third sponsor (Senate) - 2025-03-03: First reading: referred to Committee on Homeland Security and Transportation (Senate) - 2025-02-21: Referred to the Senate (House) - 2025-02-20: Third reading: passed; Roll Call 249: yeas 72, nays 21 (House) - 2025-02-20: Representative Miller D added as coauthor (House) - 2025-02-20: Representatives Snow and Heine added as coauthors (House) - 2025-02-20: Senate sponsors: Senators Crider and Doriot (House) - 2025-02-19: Amendment #1 (Andrade) motion withdrawn (House) - 2025-02-19: Second reading: amended, ordered engrossed (House) - 2025-02-19: Amendment #2 (Pressel) prevailed; voice vote (House) - 2025-02-19: Amendment #7 (Pressel) prevailed; voice vote (House) - 2025-02-17: Committee report: amend do pass, adopted (House) - 2025-02-10: Committee report: amend do pass, adopted (House) - 2025-02-10: Recommitted to Committee on Ways and Means pursuant to House Rule 126.3 (House) - 2025-01-21: First reading: referred to Committee on Roads and Transportation (House) - 2025-01-21: Authored by Representative Pressel (House) ## Bill text - Engrossed House Bill (H): [PDF](https://api.iga.in.gov/2025/bills/HB1461/versions/HB1461.07.ENGS?format=pdf) - Engrossed House Bill (S): [PDF](https://api.iga.in.gov/2025/bills/HB1461/versions/HB1461.04.ENGH?format=pdf) - Enrolled House Bill (H): [PDF](https://api.iga.in.gov/2025/bills/HB1461/versions/HB1461.08.ENRS?format=pdf) - House Bill (H): [PDF](https://api.iga.in.gov/2025/bills/HB1461/versions/HB1461.02.COMH?format=pdf), [PDF](https://api.iga.in.gov/2025/bills/HB1461/versions/HB1461.03.COMH?format=pdf) - House Bill (S): [PDF](https://api.iga.in.gov/2025/bills/HB1461/versions/HB1461.05.COMS?format=pdf), [PDF](https://api.iga.in.gov/2025/bills/HB1461/versions/HB1461.06.COMS?format=pdf) - Introduced House Bill (H): [PDF](https://api.iga.in.gov/2025/bills/HB1461/versions/HB1461.01.INTR?format=pdf) ## Related bills - SB 231: Various corrections matters. (signed) - SB 324: Criminal procedures. (signed) - SB 80: Code publication. (signed) - SB 453: Various tax matters. (signed) - SB 464: Financial institutions and consumer credit. (signed) - SB 371: Workforce matters. (signed) ## Sources - [Engrossed House Bill (H) (PDF)](https://api.iga.in.gov/2025/bills/HB1461/versions/HB1461.07.ENGS?format=pdf) - [Engrossed House Bill (S) (PDF)](https://api.iga.in.gov/2025/bills/HB1461/versions/HB1461.04.ENGH?format=pdf) - [Enrolled House Bill (H) (PDF)](https://api.iga.in.gov/2025/bills/HB1461/versions/HB1461.08.ENRS?format=pdf) - [House Bill (H) (PDF)](https://api.iga.in.gov/2025/bills/HB1461/versions/HB1461.02.COMH?format=pdf) - [House Bill (H) (PDF)](https://api.iga.in.gov/2025/bills/HB1461/versions/HB1461.03.COMH?format=pdf) - [House Bill (S) (PDF)](https://api.iga.in.gov/2025/bills/HB1461/versions/HB1461.05.COMS?format=pdf) - [House Bill (S) (PDF)](https://api.iga.in.gov/2025/bills/HB1461/versions/HB1461.06.COMS?format=pdf) - [Introduced House Bill (H) (PDF)](https://api.iga.in.gov/2025/bills/HB1461/versions/HB1461.01.INTR?format=pdf) ## Related - [SB 231: Various corrections matters.](https://policyrisk.com/state-bill/IN-SB231-2025) - [SB 324: Criminal procedures.](https://policyrisk.com/state-bill/IN-SB324-2025) - [SB 80: Code publication.](https://policyrisk.com/state-bill/IN-SB80-2025) - [SB 453: Various tax matters.](https://policyrisk.com/state-bill/IN-SB453-2025) - [SB 464: Financial institutions and consumer credit.](https://policyrisk.com/state-bill/IN-SB464-2025) - [SB 371: Workforce matters.](https://policyrisk.com/state-bill/IN-SB371-2025) - [Indiana bills](https://policyrisk.com/states/indiana/bills) - [Indiana state hub](https://policyrisk.com/states/indiana) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/IN-HB1461-2025 (as of 2026-10-17).