Committee advances transportation package amid tolling and Marion County funding debate

The Senate Appropriations Committee heard House Bill 1461 and an associated major amendment that revised vehicle registration fees, continued the community crossings program and created a $100,000,000 fund aimed at local road projects without requiring a wheel tax for the first $100,000,000 in distributions. The amendment also included a targeted $50,000,000 distribution to Marion County contingent on a local match; committee members debated whether that was an appropriate, one‑off allocation.

Why it matters: the package reshapes local road funding mechanisms, revises EV and hybrid registration fees and added low water crossing projects to community crossings eligibility. Most contentious in committee was language that affects tolling policy and whether the amendment makes future tolling administratively easier.

Major points and committee debate

Fee and program changes: presenters summarized the amendment as raising EV registration fees from $221 to $340 and hybrid freight fees from $74 to $170 beginning in calendar year 2026, while expiring a short line rail tax credit in 2027 and adjusting administration of community crossings. The amendment also clarified township CIP restrictions and added low water crossings as an eligible local project.

Tolling language and federal waivers: committee discussion focused on whether the amendment removes or weakens existing statutory constraints on tolling (in particular, a prior…