Sponsors (2)
The bill temporarily lowers gasoline costs for consumers while preserving highway and tank-remediation programs by using general fund transfers — but it increases federal outlays (raising deficit or offset risks), may deliver smaller-than-expected consumer savings if not fully passed through, and creates potential long-term uncertainty for LUST funding.
Drivers, middle-class families, and small-business owners will pay less at the pump through Jan 1, 2026 because the federal gasoline excise tax is suspended, lowering gasoline costs while the suspension is in effect.
Rural communities and transportation workers will avoid immediate cuts to highway programs and LUST (underground storage tank) remediation because Treasury must transfer equivalent revenue from the general fund to those trust funds.
Taxpayers and the federal budget will face higher general fund outlays (increasing deficits or requiring offsets elsewhere) because Treasury replaces lost trust-fund receipts with transfers from the general fund.
Drivers and middle-class families may get less of the intended relief if retailers or producers do not fully pass the temporary tax cut through to consumer prices.
Rural communities and local governments could face long-term uncertainty for underground storage tank remediation funding if suspending the LUST financing rate complicates administrative treatment or delays replacement 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 replace lost Highway Trust Fund and LUST Trust Fund revenue from the general fund.
Temporarily sets the federal excise tax on gasoline to zero for gasoline removed, entered, or sold from enactment until January 1, 2026, and suspends the related Leaking Underground Storage Tank (LUST) financing rate for that same period. The Treasury Secretary must transfer amounts from the general fund to the Highway Trust Fund and the LUST Trust Fund equal to the lost tax receipts and treat those transfers as if they were the usual excise tax receipts; the bill also states Congressional policy that consumers should receive the benefit of the tax reduction and authorizes enforcement to help ensure that outcome.
Introduced June 5, 2025 by Josh Harder · Last progress June 5, 2025