Sponsors (2)
The bill provides immediate, temporary relief for drivers by suspending the federal gasoline excise tax and directing price pass-through while preserving federal transportation and cleanup programs via general‑fund transfers, trading short‑term consumer savings and program continuity against higher federal spending, potential instability in long‑term program funding, and uncertainty for state/local planners.
Drivers and consumers nationwide will pay less at the pump while the federal gasoline excise tax is set to zero through Dec 31, 2025, creating immediate, broad household and small‑business fuel cost relief.
Gasoline retailers and producers are directed to lower posted prices to pass the tax cut through to consumers, giving a mechanism for faster retail price reductions than waiting for market adjustments alone.
The Secretary of the Treasury is authorized to use enforcement authorities to promote price pass-through, which could help protect consumers from retailers that try to retain the tax cut as extra margin.
All taxpayers face higher near‑term federal outlays because the general fund must cover lost gasoline excise tax receipts, increasing budgetary pressure and fiscal costs.
State and local governments and transportation programs may face reduced long‑term funding stability and less transparent user-fee linkages because highway and cleanup programs rely on annual general fund transfers rather than steady excise receipts.
Consumers may not actually receive the intended pump-price reductions because the enforcement authority is broadly worded and may be limited in practice, so price pass-through is not guaranteed.
Based on analysis of 2 sections of legislative text.
Temporarily eliminates the federal gasoline excise tax and LUST rate through Dec 31, 2025 and directs Treasury to transfer equal amounts from the general fund to replace lost trust-fund receipts.
Introduced June 5, 2025 by Josh Harder · Last progress June 5, 2025
Eliminates the federal excise tax on gasoline and the Leaking Underground Storage Tank (LUST) financing rate for gasoline sold, removed, or entered on or after enactment and before January 1, 2026, and requires the Treasury to replace lost receipts by transferring equal amounts from the general fund to the Highway Trust Fund and the LUST Trust Fund. The transfers are to be treated as if they were tax receipts for statutory purposes, and the bill declares a congressional policy that fuel price reductions be passed through to consumers while authorizing the Treasury to use its authorities to help ensure consumers receive the benefit. The change is temporary (only through the end of 2025) and preserves funding to highway and LUST programs by directing offsetting transfers from the general fund, rather than leaving those trust funds with lower receipts from the tax suspension.