Sponsor
Anna Luna
Representative · R-FL
Representative · R-FL
The bill offers broad, short-term relief at the pump for consumers and businesses while preserving designated transportation and cleanup funds by shifting the cost onto the general fund — trading temporary price relief for higher federal fiscal burdens, implementation complexity, and uncertainty about whether consumers will actually receive the savings.
Drivers, households, and small businesses pay less at the pump for 120 days because the federal excise tax on gasoline, diesel, and kerosene is suspended, providing temporary relief on transportation and goods costs.
Transportation workers, rural communities, and owners of fuel-related businesses continue to receive federal transportation and cleanup funding because the Treasury must transfer amounts to replace suspended excise receipts, preserving Highway Trust Fund receipts and LUST cleanup financing.
All taxpayers ultimately bear the cost because the general fund must cover lost excise revenue, increasing federal borrowing or forcing cuts/diversions in other spending.
Drivers, households, and businesses may get little or no benefit if fuel dealers do not pass the tax savings to consumers, undermining the policy's intended relief.
Small businesses, transportation-dependent communities, and consumers face only short-term relief (120 days) and potential future volatility when the tax resumes, complicating budgeting and offering no long-term price stability.
Based on analysis of 2 sections of legislative text.
Suspends specified federal excise taxes on gasoline (excl. avgas), diesel, and kerosene for 120 days and directs Treasury to replace lost Highway Trust Fund and LUST receipts from the general fund.
Official title: To provide a fuel tax holiday.
Introduced May 13, 2026 by Anna Luna · Last progress May 13, 2026
Creates a 120-day federal "fuel tax holiday" that sets specified federal excise tax rates on gasoline (excluding aviation gasoline), diesel, and kerosene to zero and suspends the LUST (Leaking Underground Storage Tank) financing rate for those fuels. The Treasury Secretary must transfer amounts from the general fund to the Highway Trust Fund and the LUST Trust Fund equal to the lost receipts and treat those transfers as if the excise receipts were collected; the bill states a congressional policy that reductions should be passed to consumers and authorizes the Secretary to use authorities to help ensure consumers benefit.