A billboard opposing possible additional tolling stands in Hobart, Indiana, on May 4, 2025. (Leslie Bonilla Muñiz/Indiana Capital Chronicle)
When I head to Chicago or Nashville, I know I’ll be receiving a tolling invoice in the mail soon after. It’s a minor inconvenience because I don’t use those routes very often.
But the prospect of Indiana tolling interstates within state lines is an entirely different discussion. I take Interstate 65 to and from work almost every day and I would no doubt rack up a ridiculous bill — at the same time that I’m paying high gas taxes every time I fill up.
My immediate reaction is: no way. But I’m trying to see all sides of the debate.
The fact is Hoosiers love to complain about our roads, but no one wants to pay to improve them.
And our roads aren’t that bad depending on who you ask.
The Indiana Department of Transportation compared Indiana to neighboring states on 12 criteria, including road and bridge conditions, fatality rates, travel reliability and more:“INDOT ranked in the top 3rd in 5 areas and in the middle 3rd in the others,” the 2024 report said.
The federal Bureau of Transportation Statistics also rates 97% of Indiana’s roads as “good” or “fair.”
But a Reason Foundation analysis found Indiana ranked 32nd in highway performance nationally.
And the money raised from Indiana’s fuel-related taxes simply isn’t keeping up with demand. That’s partially because people are purchasing less gasoline. Newer cars are more efficient, and some cars don’t need it at all.
Inflation has also spiked the cost of repairing or replacing roads and bridges.
(Indiana Department of Transportation)
So, Indiana — and every other state — has a diminishing revenue stream but more roads than ever to maintain.
And when I say Indiana, I don’t just mean state-owned roads. Most of the roads in the state are cared for by counties, cities and towns — about 89%. Their needs are immense.
One analysis said local governments would require an additional $2.4 billion annually to eliminate poorly rated local roads and bridges across the state over the next 10 years. The annual price tag for simply maintaining roads at the current condition is $1 billion.
So, would any of the additional revenue raised from tolls go to local infrastructure?
Lawmakers recently tried to think outside the box and offer other options. One was a surcharge on deliveries, such as Amazon and DoorDash. That language was removed pretty quickly. The state is also trying to force local units into implementing wheel taxes to take some ownership of the problem and raise fees and taxes at the local level.
But those are honestly just nibbling around the edges of the problem.
Tolling is where the money is at. And it’s a lot of money.
One 2017 feasibility study produced for INDOT estimated that a statewide interstate highway tolling program would have an 85% chance of generating upwards of $39 billion between 2021 and 2050.
It further reported a 50% chance that revenue could exceed $53 billion over that timeframe. The estimates didn’t include the costs to install and maintain tolling gantries, process payments, provide customer service, enforce collections and more.
(Indiana Department of Transportation)
Former Gov. Eric Holcomb chose not to go down that route, but Gov. Mike Braun appears to be more interested. And lawmakers recently removed some final impediments to imposing tolling on state highways.
“It’s going to have to be considered because, otherwise, I don’t think we can maintain our main arteries,” Braun said earlier this year.
Tolling interstates isn’t as clear-cut as it seems.
It’s generally against federal law to collect tolls on existing federal highways. But Congress has allowed several exceptions. For instance, a state can toll an existing bridge after it is reconstructed and toll new lanes added to an interstate.
The option that is most expansive is the Interstate System Reconstruction and Rehabilitation Pilot Program, which allows tolling on existing interstate facilities to fund needed reconstruction or rehabilitation on corridors that could not otherwise be adequately maintained or functionally improved.
It has only three slots — awarded to Missouri, North Carolina and Virginia years ago. But those states never implemented the program, which has essentially been inactive.
INDOT said it has not filed a waiver request on tolling — yet.
I honestly don’t see how tolling in some way can be avoided. Leaders want to capture the trucks and travelers passing through Indiana without stopping for gas. But it’ll be tough to avoid hurting Hoosiers already paying their fair share.
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