Changes in legislation impact Community Crossings funding program changes for Martin County

In 2015-2016, the Indiana Legislature instituted the Community Crossings Funding Program. In short, the program has provided funding for counties, cities, and towns for highway and bridge repairs and maintenance. The program began requiring that a county applying for funds was required to provide a 50-50 matching local funds for the award. The match was later changed to a 75-25 matching local funds. There has never been a requirement that a county, city or town collect a wheel tax or local excise surtax in order to be eligible for these funds.

Martin County has actively participated in this program since 2016. There has been a total of $9,510,701.42 spent on Martin County roads and bridges since 2016. Of that amount, $7,715,329.68 has been provided by the State of Indiana and $1,795,376.74 had to be paid by Martin County. Martin County matching funds for the most part have been paid out of highway department funds.

Until 2025, the Community Crossings program was funded each year by $250 Million Dollars by the State of Indiana. These funds were raised from vehicle registration fees collected by the Bureau of Motor Vehicles. Each county and city are required to put together a plan for specific road and bridge improvements and identify matching funds. The Indiana Department of Transportation then evaluates the applications and makes awards.

The recently completed 2025 Indiana Legislature changed the program. The Community Crossings fund was decreased from $250 Million to $100 Million. This change in funding drastically reduces what each county, city or town can expect to be awarded in Community Crossings funding. Applicants for this funding are still not required to collect a wheel tax.

Another part of the Legislature’s action in 2025 was to institute what is called a Lane Mile Distribution. The Legislature decided to require that a county, city or town must collect a wheel tax and local excise surtax in order to apply for Lane Mile Distribution funds. The Lane Mile Distribution program will receive $195-255 Million.

In summation, the result of the 2025 Legislature requires that in order for Martin County to be eligible for any type of funding like it has received since 2016, the Martin County Council must consider adopting a wheel tax and a local excise surtax. The fund raised by these taxes may be utilized for construction or maintenance of roads and bridges, salaries for the highway department, or matching funds for the Community Crossings Program or Lane Mile Distribution Program. If enacted at the maximum rate allowed by law, the following funds raised for local highway work in 2026 would be approximately:

Martin County: $615,115.

Town of Crane: $5,280.

City of Loogootee: $66,475.

Town of Shoals: $22,500.