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Holcomb pitches $225 per person inflation relief for Hoosiers

Lauren Chapman

Indiana lawmakers plan to return to the Statehouse by the end of June to send $1 billion in surplus state revenues back to Hoosiers.

Gov. Eric Holcomb announced his proposed inflation relief plan Thursday as people deal with high prices across the state.

Many have called for Indiana to suspend the gas tax amid record-high prices. Republicans have resisted, in part because they argue so many out-of-state people also pay the gas tax.

Holcomb's proposal is intended to be broader relief than suspending the gas tax would provide.

His plan would give anyone who’s filed a tax return about $225 dollars ($450 if you file jointly). It's built on the same system as Indiana's automatic taxpayer refund, which was triggered by record surplus revenues last year.

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Republican legislative leaders are already backing Holcomb's proposal and say they’ll work with the governor to meet in special session by the end of June.

Senate Democratic Leader Greg Taylor (D-Indianapolis) said he supports Holcomb’s plan but also notes that it’s just temporary relief. Taylor said he wants the state to explore long-term help for people struggling financially.

READ MORE: Indiana Democrats renew push for gas tax suspension amid record high prices

And House Democratic leaders questioned why it’s taken the governor and Republicans so long to act, when Democrats proposed virtually the same idea months ago.

For context, $225 per person compares to roughly three months of suspending the state gas taxes. The state's gas taxes currently equal about 55 cents per gallon (and that amount will increase next month). Let's say you filled up 20 gallons per fill-up, six times a month. If the gas taxes were suspended, it would take you more than three months to equal $225 in savings.

If Holcomb's plan is enacted as expected, the new $225 payments would be processed separately from the $125 automatic taxpayer refund amounts, if you receive that via direct deposit. For those receiving the $125 taxpayer refund via paper check, they would receive both amounts together later this year.

Contact reporter Brandon at or follow him on Twitter at @brandonjsmith5.

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Brandon Smith is excited to be working for public radio in Indiana. He has previously worked in public radio as a reporter and anchor in mid-Missouri for KBIA Radio out of Columbia. Prior to that, he worked for WSPY Radio in Plano, Illinois as a show host, reporter, producer and anchor. His first job in radio was in another state capitol, in Jefferson City, Missouri, as a reporter for three radio stations around Missouri. Brandon graduated from the University of Missouri-Columbia with a Bachelor of Journalism in 2010, with minors in political science and history. He was born and raised in Chicago.