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State Community Crossings changes will make grants more competitive, town official says
Summary
Town manager Joe told the Corydon council that recent state changes to the Community Crossings grant program (House Bill 1461) reduce total discretionary funding and create new eligibility requirements — changes that will make awards more competitive and could limit Corydon’s share unless the town meets matching and certification rules.
Town manager Joe briefed the Corydon Town Council that changes to Indiana’s Community Crossings grant program under House Bill 1461 will shrink available competitive funding and impose new eligibility rules that could affect the town’s ability to win awards.
“There's going to be less money available,” Joe said, noting the statewide program now sets aside $100 million for a competitive round, $50 million for certain county matching needs, and $20 million for railroad programs. He told the council the program previously made it relatively likely for small towns to be funded if applications were complete, but that is unlikely to continue under the new allocations and formula-based distribution scheduled to begin in 2027.
Why it matters: Corydon has used Community Crossings repeatedly since 2017 to stretch local dollars. Joe provided totals showing the town has completed dozens of road sections with INDOT contributing roughly $1 million and the town contributing about $300,000 toward an almost $1.5 million total in project costs over the life of the program. Under the new law, funding rounds will be reduced to one per year, the required local match was reduced from 25% to 20%, and a formula distribution will follow after set-asides — but that formula ties eligibility to wheel-tax adoption and updated transportation-asset management certification.
Key details from the briefing: • Competitive pool change: the program’s earlier multi-round structure is being compressed; staff said the competitive pot available to municipalities will be smaller than in prior years. • Set-asides: $20 million is earmarked for railroad programs and $50 million is designated for road improvements that depend on matching funds in certain jurisdictions, reducing the residual competitive funding for other communities. • Formula-based distribution: beginning in 2027, leftover funds will be allocated by a lane-mile formula, subject to eligibility conditions including whether an LPA has adopted a wheel tax or otherwise meets the statute’s interpretation; that interpretation is still unclear for some small towns. • Application timing: staff advised that there may be no INDOT application this year while the agency implements the new rules; “I don't anticipate anything coming out this year,” Joe said.
Council response and next steps: Council members acknowledged the program’s past value and asked staff to monitor INDOT guidance and training opportunities for the town’s staff (asset-management and PACER rating certification). Joe recommended the town pause submitting applications until the state clarifies eligibility and application procedures and to consider strategic projects that maximize the town’s 20% match.
The presentation concluded with staff saying they would notify the council as soon as INDOT issues application guidance and recommended preparing required asset-management documentation and staff certifications to preserve eligibility.
