Engineers Grade Indiana D+, Flag Gas Tax Pause

Indiana's infrastructure earned an overall D+ from the American Society of Civil Engineers in a report released Thursday at the Statehouse. It is the group's first report card devoted to Indiana.

The 2026 Report Card for Indiana's Infrastructure graded seven categories. Bridges received a B-, the highest mark. Roads and drinking water each received a C-, and wastewater a D+. Dams, energy and stormwater each received a D, which the society's scale defines as poor.

"A 'D+' grade is a reminder of the importance of Indiana's infrastructure and the successes in some areas and challenges other sectors face in the future," report card co-chair James Tradup said, according to the Indiana Capital Chronicle.

Roads and bridges

About 95% of Indiana's more than 19,500 bridges are rated fair or good, according to the report. Locally owned roads and bridges fare worse than state-owned ones. Nearly a third of city, town and county roads are rated poor, and about 17% of major roadways are in poor or mediocre condition. Deteriorated roads cost Indiana motorists an estimated $1.6 billion a year, or $336 per driver, in added vehicle costs, the engineers wrote.

The report puts locally owned bridge needs at about $580 million a year. Counties raise roughly $67 million a year through cumulative bridge funds, leaving what the engineers call a $513 million annual shortfall. Local roads need an estimated $474 million more each year just to hold current conditions.

Federal inspection data show the picture in southwest Indiana. Vigo County has 12 bridges rated poor out of 295, according to the Federal Highway Administration's 2026 county tables. Vanderburgh County has 9 poor bridges out of 280, Warrick County 7 of 197, Gibson County 19 of 368 and Knox County 28 of 291. Those counts include both state and locally owned bridges.

The gas tax question

The report names the suspension of Indiana's gasoline taxes as a source of funding uncertainty. Motor fuel taxes generate about 82% of state and local road revenue, according to the report. "The temporary suspension demonstrates how transportation funding can be affected by policy and economic conditions," the engineers wrote.

Gov. Mike Braun suspended the gasoline use tax in April and added the gasoline excise tax in May, as a Nov. 2 Hoosier First opinion column detailed. His Executive Order 26-35, signed Nov. 4, extends the state energy emergency through Dec. 4. The Indiana Department of Revenue says it will not collect either tax through that date. The two taxes were worth a combined 64 cents a gallon in November, the Capital Chronicle reported.

Secretary of Transportation and Infrastructure Matthew Ubelhor, who spoke for Braun at Thursday's release, said the extended suspension is expected to leave a roughly $1.1 billion funding shortfall. The administration intends to use reserves to keep fiscal year 2027 projects and maintenance on schedule, which will require action by lawmakers, the Capital Chronicle reported.

"We are not taking one project off," Ubelhor said. He also said the state needs a long-term replacement for fuel tax revenue as vehicles grow more efficient. "We need to look at that yesterday," he said. Tolling is among the options under review, and the state is awaiting a federal waiver decision tied to an Interstate 70 reconstruction program.

Braun has said reserves have covered the road and bridge money local governments lost. "That's all been restored through our reserves rainy day fund," he told 21Alive on Nov. 10. He described the Dec. 4 extension as "my last option to extend it before we need legislative approval." Lawmakers return in early January.

AAA put Indiana's average for regular gasoline at $3.38 on Nov. 14, against a national average of $3.84. The Terre Haute average was $3.42, and the Evansville average was $3.25.

Recommendations and local grants

The engineers recommend expanding programs such as Community Crossings, giving local governments more revenue options and setting more predictable long-term transportation funding. For roads, the report also suggests mileage-based user fees and usage charges for heavy trucks.

Braun presented $109.9 million in fiscal 2027 Community Crossings matching grants to 346 communities on Oct. 28. Terre Haute received $317,497.55 and Seelyville $118,849.60, WTWO reported. Program money comes from the state's local road and bridge matching grant fund.