INDIANAPOLIS (AP) — The Indiana Finance Authority has approved a new deal with the private contractor operating the Indiana Toll Road allowing 35 percent fee increases for large trucks as part of Republican Gov. Eric Holcomb’s plan to pump an additional $1 billion into infrastructure projects around the state.

The Finance Authority voted unanimously Thursday to approve the deal. The rate hike takes effect Oct. 5 and the state would receive $400-million that same day from the Indiana Toll Road Concession Co. The rate increase applies to vehicles with three or more axles.

Democrats have charged the new rates amount to a tax increase for the trucking industry, while Holcomb has stressed that the new fees won’t apply to passenger cars and would bring Indiana in line with what nearby states charge.