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Braun extends gas tax holiday for fourth — and likely final — time

Gov. Mike Braun announced he would extend the gas tax holiday for a fourth time Thursday, July 2nd. The move has kept Indiana's fuel costs lower than much of the country.
Benjamin Thorp
/
WFYI
Gov. Mike Braun announced he would extend the gas tax holiday for a fourth time Thursday, July 2nd. The move has kept Indiana's fuel costs lower than much of the country.

Gov. Mike Braun has extended Indiana's gas tax holiday for the fourth time.

It's the final 30-day extension Braun can order without approval from the legislature.

Each month that the gas and excise tax are paused costs the state roughly $140 million, according to Braun.

A handful of other states have attempted similar affordability measures, but Braun said none have come close to what Indiana has done.

"We can spend money on things that are necessary, like an energy emergency that we've been going through, and you can see most states have not been able to do it," he told reporters.

The gas tax holiday was first instituted in April in response to rising fuel prices caused by the war in Iran.

Gas prices have fallen in recent days, and Braun said the need for the gas tax holiday may ease towards the end of the summer.

"These savings will carry us through the heavy travel time of summer across the Fourth of July and beyond," the governor said.

A number of lawmakers have raised concerns about the long-term costs of the tax suspension to the state.

But Braun said Indiana has a strong economy that can support relief for its citizens.

"I'll continue to do everything I can to make sure that the average Hoosier family is going to have as much relief as a state government can provide," he said.

Earlier this week, the governor announced he would make good on the financial losses local governments face from the suspension of the gas tax, ensuring they continue to receive funds for local road and infrastructure projects.

Still, Braun acknowledged the legislature will have to address the long-term issue of rising infrastructure costs. Steel and concrete, he said, have gone up about 50%.

"There needs to be a discussion among Hoosiers, among legislators, what we do that's going to address that if we want to keep everything in good shape," he said.

Contact Government Reporter Benjamin Thorp at bthorp@wfyi.org

Copyright 2026 WFYI Public Media

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