Governor still undecided on special session to extend gas tax

By Ben Thorp, WFYI | Published on in Economy, Government, Politics, Transportation
Governor Mike Braun speaks from a podium in his office, surrounded by the American and Indiana flags.
Indiana Gov. Mike Braun announces his final gas tax holiday extension in a news conference on Thursday, July 2, 2026. (Photo by Leslie Bonilla Muñiz/Indiana Capital Chronicle)

Governor Mike Braun says he hasn’t decided whether he would support a special session to keep the state’s gas tax holiday in place.

Braun extended the state’s gas tax holiday as long as he’s allowed without the legislature’s support, but gas prices continue to spike, with the national average price of gasoline this week topping $4.00 again.

Braun has suspended the state’s gas tax all summer, in an effort to help with residents’ affordability issues amidst the ongoing war with Iran.

Read More: Gas tax breaks to cost state, local governments $533M

Speaking with reporters, Braun said he wants the focus to be on the reprieve the state was able to give.

“Whether there’s going to be more… that’ll be a discussion we’d have to have,” said the governor.

 The current suspension will expire August 6.

Each extension of the gas tax holiday has cost the state roughly $140 milllion every month. The state is in the process of reimbursing local governments for some of those funds after lawmakers, including some Republicans, began raising concerns about the cost of the gas tax holiday, especially worrying about how the suspensions might impact local communities that use those funds for road and infrastructure projects.

Braun has repeatedly said that both the suspensions and the state’s ability to make local communities whole have only been possible because of the state’s strong economy and balanced budget.

According to the Indiana Capital Chronicle, Braun suspended the gas taxes using a state statute that allows the governor to declare a state of emergency for up to 60 days.

“The governor may not renew or extend a proclamation more than once without approval of the general assembly,” Indiana Code reads.

Contact Government Reporter Benjamin Thorp at bthorp@wfyi.org The Indiana Capital Chronicle contributed reporting.

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