Sec. 2. (a) The local road and bridge matching grant fund is established to provide matching grants to local units for eligible projects.
(b) The department shall administer the fund.
(c) The fund consists of the following:
(1) Appropriations by the general assembly.
(2) Interest deposited in the fund under subsection (d).
(3) Money deposited in or transferred to the fund from any other source.
(d) The treasurer of state shall invest money in the fund not currently needed to meet the obligations of the fund in the same manner as other public money may be invested. Interest that accrues from these investments shall be deposited in the fund.
(e) Money in the fund at the end of a state fiscal year does not revert to the state general fund.
(f) Not later than June 1, 2025, the department shall report to the state comptroller the amount of matching grants awarded by the department from the fund in the state fiscal year beginning July 1, 2024, and ending June 30, 2025, that the department will not distribute before July 1, 2025.
(g) The state comptroller shall determine the balance of the money in the fund on June 15, 2025, and on June 15 of each year thereafter. After determining the balance of money in the fund under this subsection, the money in the fund must be allocated in accordance with subsection (h), transferred in accordance with subsections (i) and (j), and distributed in accordance with subsection (k).
(h) After determining the balance of the money in the fund under subsection (g), the money in the fund must first be allocated as follows:
(1) On June 30, 2025, the department must allocate the total of the amount determined under subsection (f) plus one hundred million dollars ($100,000,000) of money in the fund to make matching grants in the state fiscal year beginning July 1, 2025, and ending June 30, 2026, to all local units. The department may not award more than one hundred seventy-five million dollars ($175,000,000) of matching grants in the state fiscal year beginning July 1, 2025, and ending June 30, 2026. The department may not award a local unit more than one (1) matching grant in the state fiscal year beginning July 1, 2025, and ending June 30, 2026.
(2) On June 30, 2026, and June 30 of each year thereafter, the department must allocate the first one hundred million dollars ($100,000,000) of money in the fund to make matching grants in the next state fiscal year to all local units.
(i) After the department allocates the money in the fund under subsection (h), the state comptroller shall make the following five (5) transfers:
(1) On June 30, 2026, a transfer of:
(A) to the state general fund, the total amount of the state tax credits certified for 2025 by the department of state revenue under IC 6-3.1-38.1-8(c); and
(B) to the department, an amount equal to twenty million dollars ($20,000,000) minus the amount under clause (A) for deposit in the state highway road construction and improvement fund established under IC 8-14-10 for the department's use in financing a railroad crossing upgrade project as described in IC 8-14.5-8.
(2) On June 30, 2027, a transfer of:
(A) to the state general fund, the total amount of the state tax credits certified for 2026 by the department of state revenue under IC 6-3.1-38.1-8(c); and
(B) to the department, an amount equal to twenty million dollars ($20,000,000) minus the amount under clause (A) for deposit in the state highway road construction and improvement fund established under IC 8-14-10 for the department's use in financing a railroad crossing upgrade project as described in IC 8-14.5-8.
(3) On June 30, 2028, a transfer of:
(A) to the state general fund, the total amount of the state tax credits certified for 2027 by the department of state revenue under IC 6-3.1-38.1-8(c); and
(B) to the department, an amount equal to twenty million dollars ($20,000,000) minus the amount under clause (A) for deposit in the state highway road construction and improvement fund established under IC 8-14-10 for the department's use in financing a railroad crossing upgrade project as described in IC 8-14.5-8.
(4) On June 30, 2029, a transfer of twenty million dollars ($20,000,000) to the department for deposit in the state highway road construction and improvement fund established under IC 8-14-10 for the department's use in financing a railroad crossing upgrade project as described in IC 8-14.5-8.
(5) On June 30, 2030, a transfer of twenty million dollars ($20,000,000) to the department for deposit in the state highway road construction and improvement fund established under IC 8-14-10 for the department's use in financing a railroad crossing upgrade project as described in IC 8-14.5-8.
(j) Beginning on June 30, 2027, and on June 30 of each year thereafter, after the department allocates the money under subsection (h) and the state comptroller makes a transfer under subsection (i), when applicable, the state comptroller shall transfer fifty million dollars ($50,000,000) of money in the fund to the consolidated city in Marion County for the construction, reconstruction, and preservation of the consolidated city's local streets (as defined in IC 8-14-2-1(9)). The following apply to a transfer under this subsection:
(1) The consolidated city in Marion County shall not use these revenues for:
(A) reducing the capacity of existing roads and streets;
(B) greenways;
(C) bike lanes;
(D) bike trails; and
(E) sidewalks.
(2) The money distributed to the consolidated city under this subsection shall be matched with an appropriation by the consolidated city as follows:
(A) For the transfer made on June 30, 2027, the consolidated city must provide a match of fifty million dollars ($50,000,000), all of which must be new revenue and may not include any other distributions made to the consolidated city under this title.
(B) For the transfer made on June 30, 2028, the consolidated city must provide a match of seventy million dollars ($70,000,000), of which twenty million dollars ($20,000,000) must be new revenue and may not include any other distributions made to the consolidated city under this title or previously used to make a match under this subdivision.
(C) For the transfer made on June 30, 2029, the consolidated city must provide a match of eighty million dollars ($80,000,000), of which ten million dollars ($10,000,000) must be new revenue and may not include any other distributions made to the consolidated city under this title or previously used to make a match under this subdivision.
(D) For the distribution made on June 30, 2030, the consolidated city must provide a match of ninety million dollars ($90,000,000), of which ten million dollars ($10,000,000) must be new revenue and may not include any other distributions made to the consolidated city under this title or previously used to make a match under this subdivision.
(E) For the transfer made on June 30, 2031, and for the transfers made on June 30 each year thereafter, the consolidated city must provide a match of one hundred million dollars ($100,000,000), of which ten million dollars ($10,000,000) must be new revenue and may not include any other distributions made to the consolidated city under this title or previously used to make a match under this subdivision.
(3) The appropriation required to be made by the consolidated city under this subsection may not include revenue allocated to public safety purposes under IC 6-3.6-6.
(4) The transfer under this subsection continues until the consolidated city is unable to provide the match required under subdivision (2). The consolidated city shall notify the state comptroller not later than December 31 of the calendar year prior to a transfer if the consolidated city is able to provide the match required under subdivision (2). The state comptroller may not make a transfer on June 30 of the year the consolidated city cannot provide the match required under subdivision (2) or on June 30 of any subsequent years.
(5) If the transfer under this subsection ends, the consolidated city must use any remaining funds that were used to provide a match under subdivision (2) only for the construction, reconstruction, and preservation of the city's local streets (as defined in IC 8-14-2-1(9)) and may not use the funds for any of the purposes provided in subdivision (1) or for any other purpose.
(k) On June 30, 2026, after the state comptroller makes a transfer under subsection (i), and on June 30 of each year thereafter, after the state comptroller makes a transfer under subsection (j), the state comptroller shall distribute the remainder of the money in the fund, as follows:
(1) To be eligible to receive a distribution under this subsection, a local unit must have:
(A) adopted a wheel tax and vehicle excise tax; and
(B) provided the local technical assistance program at Purdue University with an updated transportation asset management plan within the last twelve (12) months.
(2) The distribution to a local unit eligible to receive a distribution under subdivision (1) must be proportional to the local unit's share of the total lane mileage for all local units eligible to receive a distribution under subdivision (1). The department shall provide to the state comptroller the total lane mileage for purposes of making the distribution under this subsection.
A local unit may use a distribution made under this subsection only for eligible projects. A local unit that is eligible for a distribution under this subsection may receive a matching grant under this chapter, subject to the limits provided in section 3.5 of this chapter.
(l) Money in the fund is continuously appropriated for the purpose of the fund.
(m) Money in the fund may not be transferred, assigned, or otherwise removed from the fund by the state board of finance, the budget agency, or any other agency until after budget committee review, except for either or both of the following purposes:
(1) The department may distribute funds to a local unit that has been approved for a grant under this chapter without budget committee review.
(2) To transfer money in the fund under subsections (i) and (j) and to make a distribution under subsection (k) without budget committee review.
As added by P.L.146-2016, SEC.16. Amended by P.L.165-2021, SEC.134; P.L.173-2025, SEC.28; P.L.147-2026, SEC.11.
