Sponsors (2)
The bill lowers gasoline costs for consumers through Jan 1, 2026 and protects highway/LUST funding by replacing lost excise revenue from the general fund, but does so by increasing federal outlays (raising deficit or requiring offsets), risking imperfect pass-through to consumers, and creating potential long-term complications for tank remediation funding.
Drivers and consumers (middle-class families, taxpayers, small-business owners) will pay less at the pump during the suspension of the gasoline excise rate through January 1, 2026.
Rural communities and transportation workers will see highway programs and LUST (leaking underground storage tank) remediation maintained because the Treasury is required to transfer equivalent revenue from the general fund to those trust funds.
Taxpayers and the federal budget face higher general fund outlays and potential increases in the federal deficit (or the need for offsets elsewhere) because transfers must replace suspended excise receipts.
Drivers and middle-class families may receive less of the intended benefit if retailers or producers do not fully pass the tax cut through to lower pump prices.
Rural communities and local governments could face complications for long-term underground storage tank remediation funding if suspending the LUST financing rate disrupts or delays stable funding and administrative treatment of transfers.
Based on analysis of 2 sections of legislative text.
Temporarily sets the federal gasoline excise tax to zero through Dec 31, 2025 and requires Treasury to backfill Highway Trust Fund and LUST receipts from the general fund.
Introduced June 5, 2025 by Josh Harder · Last progress June 5, 2025
Temporarily sets the federal per-gallon gasoline tax to zero for gasoline removed, entered, or sold from the date the law is enacted through December 31, 2025, and suspends the Leaking Underground Storage Tank (LUST) financing rate for the same period. The Treasury Secretary must transfer from the general fund to the Highway Trust Fund and the LUST Trust Fund amounts equal to the lost revenue and treat those transfers as if they were the usual excise-tax receipts. The bill states a policy that consumers should receive the benefit of the tax reduction and authorizes the Treasury to use available tools to enforce that passthrough. It does not permanently change the underlying tax statutes beyond the temporary suspension and transfer instructions for the covered period.