IndianaSB 179Second Regular Session 124th General Assembly (2026)SenateWALLET

Indiana department of transportation.

Sponsored By: Michael Crider (Republican)

Signed by Governor

Summary

Allows the Indiana department of transportation (department) to assume the responsibilities and duties of the United States Department of Transportation with respect to certain federal environmental laws. Provides that the department waives its civil immunity and consents to the jurisdiction of the federal courts for responsibilities and duties assumed under certain federal environmental laws. Amends language regarding a local unit's eligibility for: (1) a grant from the local road and bridge matching grant fund (fund); and (2) a distribution from the fund based on the local unit's share of total lane mileage. Provides limitations for an overweight truck permit that is issued for a single trip. Provides for the use of the Indiana Plane Coordinate System as a means to describe real property. Provides that the department may give preference in awarding grants from the fund to local units that have adopted an enhanced asset management plan. Provides that a county may impose a vehicle excise tax or wheel tax on a vehicle that is registered in the county and not registered in a municipality in the county where a vehicle excise tax or wheel tax went into effect after December 31, 2026. Amends certain requirements for township capital improvement plans.

homeland security and transportationappropriationsthe houseroads and transportation

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Bill Overview

Analyzed Economic Effects

12 provisions identified: 5 benefits, 3 costs, 4 mixed.

Some drivers avoid overlapping county taxes

Vehicles registered in a city or town are exempt from county vehicle excise tax when its municipal excise tax starts after December 31, 2026. The same exemption applies to county wheel tax when the municipal wheel tax starts after that date. Each exemption applies to the matching type of tax; it does not remove the municipal tax.

Local road grants get money and limits

Indiana's transportation department runs a matching grant fund for eligible local road and bridge projects. By June 30, 2025, it must allocate unpaid prior commitments plus $100 million for July 2025 through June 2026. During that fiscal year, awards cannot exceed $175 million, and each local government can receive only one grant. Beginning June 30, 2026, the first $100 million is allocated each year for the next fiscal year's grants. The department must favor projects with the greatest regional economic importance and may favor enhanced road plans submitted to it and Purdue's local technical assistance program.

Marion street money requires growing matches

Beginning June 30, 2027, Marion County's consolidated city receives $50 million annually for local street construction, rebuilding, and preservation. Required city matches are $50 million in 2027, $70 million in 2028, $80 million in 2029, $90 million in 2030, and $100 million each year from 2031. New revenue must supply $50 million in 2027, $20 million in 2028, and $10 million each year thereafter. Matching money cannot come from public safety allocations; the 2027 match also cannot include other distributions under the transportation title. The city must confirm its match by December 31 before each transfer, and transfers stop without the match; neither state nor matching money can reduce road capacity or fund greenways, bike lanes, bike trails, or sidewalks.

State road reviews allow federal lawsuits

Beginning July 1, 2026, Indiana's transportation department can take on specified federal environmental review duties for transportation projects. It can sign federal agreements covering categorical exclusions and surface transportation project delivery. For covered actions, the department gives up immunity from civil lawsuits, including in federal court. Its liability cannot exceed what federal law allows under these programs.

Railroad crossing upgrades get scheduled funding

The law schedules road and bridge grant fund transfers for a railroad crossing upgrade project after required allocations. On June 30 of 2026, 2027, and 2028, the general fund receives certified state tax-credit amounts for 2025, 2026, and 2027, respectively. On each date, the transportation department receives $20 million minus that certified amount for the project. On June 30, 2029, and June 30, 2030, the department receives $20 million for the project each time.

Smaller towns pay lower road matches

Cities and towns with fewer than 12,500 people pay 20% of an eligible road or bridge project's total cost. Those with at least 12,500 people pay 50%. Raising the cutoff from 10,000 lowers the required share for communities with 10,000 through 12,499 people. County matching rates stay unchanged.

Truck operators gain weight and permit flexibility

Vehicles using natural gas or mainly powered by batteries get an extra 2,000 pounds under applicable weight limits. Single-trip oversize or overweight permits last five days from issuance. They last ten days when the tractor-semitrailer and load require a law enforcement escort. Construction vehicles with towbar connections are exempt from the general 60-foot combination limit when towing trailers carrying heavy equipment or construction materials.

Recorded land maps need coordinate details

Beginning July 1, 2026, recorded land-boundary documents using coordinates must explain their link to the National Spatial Reference System. They must list the coordinate system, zone, reference frame or datum, datum realization, epoch, and units. Multizone land descriptions must use the official zone name. A single tract crossing adjacent zones must reference all boundary points to the named zone. When the same document also uses an original survey, public land survey, or subdivision description, that description controls any conflict.

Local road funding requires timely taxes

Counties qualify for the road fund's remaining-balance distributions only after adopting both county vehicle excise and wheel taxes. Both taxes must be adopted by May 1, 2026, for the 2026 distribution. For later distributions, the deadline is September 1 of the prior year. Local entities must also send the Bureau of Motor Vehicles their approved transportation asset management plan by those deadlines.

New municipal taxes end county shares

Cities and towns receive $0 from county vehicle excise tax distributions when their municipal excise tax starts after December 31, 2026. The same rule applies to county wheel tax distributions when their municipal wheel tax starts after that date. For each affected distribution, the formula counts the municipality's population and street mileage as zero.

Indiana mapping gets shared coordinate standards

Beginning July 1, 2026, Indiana establishes the Indiana Plane Coordinate System, with statewide and multizone layers. The statewide layer serves mapping and emergency planning, not original land retracement or major facility design; multizone layers serve surveying, land descriptions, and design. Users must follow zone alignment and reference-point rules, use international feet or meters, and reference official National Spatial Reference System datums. Documents can use the system's name only for coordinates based on its standards. The law also permits the latest or earlier State Plane Coordinate System versions and Indiana's 1983 coordinate system.

Local road payouts reduce grant ceilings

Beginning June 30, 2026, eligible local governments share the road fund's remaining balance after required transfers, based on lane mileage. They must adopt both vehicle excise and wheel taxes and submit an updated road asset plan to Purdue's local technical assistance program within the prior 12 months. The money can pay only for eligible projects. For state fiscal years starting after June 30, 2026, recipients can also qualify for matching grants. Their grant ceiling is reduced by the distribution received, but only for that calendar year; other grant limits still apply.

Sponsors & Cosponsors

Sponsor

  • Michael Crider

    Republican • Senate

Cosponsors

  • Blake Doriot

    Republican • Senate

  • Jim Pressel

    Republican • House

  • Lonnie Randolph

    Democratic • Senate

  • Travis Holdman

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 252 • No: 33

House vote • 2/27/2026

Rules Suspended. Conference Committee Report 1: adopted by the House

Yes: 94 • No: 0

Senate vote • 2/27/2026

Rules Suspended. Conference Committee Report 1: adopted by the Senate

Yes: 45 • No: 5

House vote • 2/24/2026

Third reading: passed

Yes: 72 • No: 23

Senate vote • 1/27/2026

Third reading: passed

Yes: 41 • No: 5

Actions Timeline

  1. Signed by the Governor

    3/12/2026Senate
  2. Public Law 147

    3/12/2026Senate
  3. Signed by the President Pro Tempore

    3/5/2026Senate
  4. Signed by the Speaker

    3/3/2026House
  5. Signed by the President of the Senate

    3/2/2026Senate
  6. Senator Ford J.D. removed as conferee

    2/27/2026Senate
  7. Rules Suspended. Conference Committee Report 1: adopted by the House; Roll Call 428: yeas 94, nays 0

    2/27/2026House
  8. Rules Suspended. Conference Committee Report 1: adopted by the Senate; Roll Call 321: yeas 45, nays 5

    2/27/2026Senate
  9. CCR # 1 filed in the House

    2/27/2026House
  10. CCR # 1 filed in the Senate

    2/27/2026Senate
  11. Senator Qaddoura added as conferee

    2/27/2026Senate
  12. Senate conferees appointed: Crider, Ford J.D.

    2/26/2026Senate
  13. Senate advisors appointed: Doriot, Spencer, Holdman

    2/26/2026Senate
  14. House conferees appointed: Pressel, Harris

    2/26/2026House
  15. Motion to dissent filed

    2/26/2026Senate
  16. Senate dissented from House amendments

    2/26/2026Senate
  17. House advisors appointed: Lawson, Haggard, Patterson, Hamilton, Dant Chesser

    2/26/2026House
  18. Returned to the Senate with amendments

    2/25/2026House
  19. Third reading: passed; Roll Call 345: yeas 72, nays 23

    2/24/2026House
  20. Amendment #1 (Pressel) prevailed; voice vote

    2/23/2026House
  21. Second reading: amended, ordered engrossed

    2/23/2026House
  22. Committee report: amend do pass, adopted

    2/18/2026House
  23. Committee report: amend do pass, adopted

    2/16/2026House
  24. Recommitted to Committee on Ways and Means pursuant to House Rule 126.3

    2/16/2026House
  25. First reading: referred to Committee on Roads and Transportation

    1/29/2026House

Bill Text

  • Engrossed Senate Bill (H)

  • Engrossed Senate Bill (S)

  • Enrolled Senate Bill (S)

  • Introduced Senate Bill (S)

  • Senate Bill (H)

  • Senate Bill (S)

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