The Indiana Department of Transportation (INDOT) announced it has invested all of its $897,920,888.32 in federal highway funds that are dedicated to Indiana.
This move was made in light of the fiscal year ending on Sept. 30, which is when the federal government closes their books. By the end of September each year, any funds that have not been dedicated to projects are returned to to the federal government. The funds are then distributed throughout all U.S. territories and states.
Because INDOT has dedicated all of its funds to its federal highways, the state will be able to keep all of its finances.
Federal highway funding is included in the cost for a gallon of gas at the pump. Even though gas prices change regularly, the federal tax is set at a fixed rate of 18.4 cents for each gallon. The state tax amounts to 18 cents for each gallon. This revenue is then sent to the Federal Highway Trust Fund, where Congress grants approval to payments from the fund until October 29.
Usually the Federal Highway Trust Fund reimburses construction project costs by 80 percent. To do this, the fund requires 20 percent of local or state matching funds. Then the Federal Highway Administration (FHWA) agrees to reimburse a maximum of 90 percent of federal funds used on interstate highway or safety projects.
