County Reviews Road Funding Strategy Amid State Changes

Dubois County officials are preparing for significant changes to Indiana's road funding programs that could affect how local transportation projects are planned and financed. 

Highway Engineer Levi Leffert explained how some of those recent legislative changes are expected to have an effect on the Community Crossings Matching Grant program. The application window was in July last year, but INDOT has elected to move that to September this year. Moving forward, INDOT expects the September time frame to be permanent. The program is still capped at $1 million, with one call for projects per year. In prior years, there was a $1.5 million cap with two calls for projects. 

With limited funding available, Leffert emphasized the importance of the County pursuing the maximum possible award. The city will review the asset management plan to determine which project is the best candidate for this year’s CCMG application. A proposal should be available for consideration by the end of the month. 

In a change for this year, CCMG will be funded alongside the Lane Mile Direct Distribution (LMDD). House Bill 1461 enacted in May 2025 restructured the state’s allocation of the local road and bridge fund. Both programs provide state funding, but LMDD provides funds directly to local municipalities using a lane-mile formula rather than requiring the competitive grant application process. The $1 million cap will be a combination of both sources. If a municipality receives a distribution through the direct lane mile formula, their maximum CCMG award is reduced by that amount. Leffert also discussed the gas tax suspension. In previous public comments, he had noted the potential negative impact of the suspension on future LRS (Local Road and Street) Revenue. He has expressed concerns that there would not be enough revenue for the county to complete its planned projects for 2026. 

Leffert provided an update that “the governor has directed the state budget agency to calculate the amounts necessary to make local governments whole and for units to begin receiving distributions in late July. Local governments are expected to be made whole no later than November first.” He said that the county will still have to monitor the situation closely, as the timing for distributions could still impact projects.

For more information on these and other updates, visit duboiscountyin.org/government


 - By Drew Hasselbring