March 10, 2025

Lawmakers weigh new road funding formula for Indianapolis

The upkeep and improvement of roadways in Indianapolis is an ongoing issue. - WFYI / FILE PHOTO

The upkeep and improvement of roadways in Indianapolis is an ongoing issue.

WFYI / FILE PHOTO

The upkeep and improvement of roadways in the capital city is an ongoing issue. A proposed road funding formula that would better account for Indianapolis roadways is under consideration by state lawmakers.

Indianapolis receives state funding through a formula that city leaders have long said is unfair to larger, urban areas. State Rep. Justin Moed (D-Indianapolis) has authored numerous bills addressing road funding over the past five years. 

He said the core of the issue is that the state formula measures roads by center-lane miles. “And so a two lane County Road is funded the same as if it's 10 miles long. And you know, a stretch of Washington Street in Indianapolis that has five lanes is 10 miles long, they both get exactly the same amount of funding for that road.

House Bill 1461 would maintain the old funding formula for rural communities, but implement a new formula to account for width of roads. It would also provide Marion County with an additional $50 million for at least two years.

Moed said the measure provides an opportunity for a more equitable solution.

“With the new funding formula, it is an acknowledgement that the old funding formula doesn't adequately fund communities that are growing or communities that have a large amount of roads,” Moed said.

The bill passed the House but has yet to receive a hearing in the Senate. Lawmakers must conclude by the end of April.

Contact WFYI managing editor city desk Jill Sheridan at jsheridan@wfyi.org.

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