Sponsors (2)
The bill temporarily reduces gasoline taxes to deliver short-term relief at the pump while preserving highway and tank-cleanup funding via general‑fund transfers — trading immediate consumer savings for higher federal outlays and risks that savings won’t fully reach consumers and that long-term environmental financing could be complicated.
Drivers and most consumers will pay less at the pump during the suspension (through Jan 1, 2026), lowering gasoline costs for households and small businesses.
Highway programs and Leaking Underground Storage Tank (LUST) remediation funding are maintained because Treasury must transfer equivalent revenues from the general fund to those trust funds.
Treasury transfers to replace lost trust-fund receipts increase general fund outlays, potentially raising the federal deficit or requiring spending offsets that could affect taxpayers and other programs.
Retailers or fuel producers may not fully pass the tax cut through to retail gasoline prices, so drivers could receive less of the intended savings.
Suspending the LUST financing rate could complicate long-term funding dynamics for underground storage tank remediation if transfers are delayed or not administratively addressed, risking weaker environmental cleanup funding over time.
Based on analysis of 2 sections of legislative text.
Temporarily sets the federal gasoline excise tax to zero through Dec 31, 2025, suspends the LUST rate, and requires Treasury transfers to replace lost receipts.
Official title: To amend the Internal Revenue Code of 1986 to provide a gasoline tax holiday.
Introduced June 5, 2025 by Josh Harder · Last progress June 5, 2025
Temporarily reduces the federal excise tax on gasoline to zero for gasoline removed, entered, or sold between enactment and January 1, 2026, and suspends the LUST financing rate for that period. It requires the Treasury Secretary to transfer from the general fund to the Highway Trust Fund and the LUST Trust Fund amounts equal to the lost receipts and directs that those transfers be treated as if they were receipts under the existing tax statutes; it also states a congressional policy that consumers should get the benefit of the tax cut and authorizes enforcement to that end.