Sponsors (3)
The bill delivers short‑term relief at the pump for drivers by suspending the federal gasoline excise tax while Treasury backfills lost infrastructure and cleanup funding, but it raises federal outlays, risks incomplete consumer pass‑through, and may weaken long‑term, stable funding incentives for transportation.
Drivers and households (including middle‑class families and low‑income individuals) pay lower at‑the‑pump prices while the federal gasoline excise tax is set to zero through Dec 31, 2026, and Treasury is directed to use its authority to try to speed price reductions to consumers.
Local governments and transportation agencies keep receiving Highway Trust Fund support because Treasury must replace lost federal gasoline excise receipts, helping preserve federal highway and transit funding during the tax holiday.
Local governments maintain funding for leaking underground storage tank cleanup programs because Treasury must replace lost LUST financing receipts.
Taxpayers face higher federal outlays because general fund transfers replace excise receipts, which could increase the deficit or crowd out other spending.
Middle‑class families and low‑income individuals may not receive the full tax cut if fuel producers or dealers do not lower retail prices fully despite the Treasury direction, reducing the policy's effectiveness for consumers.
Transportation workers and local governments may face weaker long‑term infrastructure funding incentives because temporarily eliminating the gasoline excise tax reduces a stable user‑fee revenue source for transportation.
Based on analysis of 2 sections of legislative text.
Temporarily zeros the federal gasoline excise tax through Dec 31, 2026, and directs Treasury to reimburse the Highway Trust Fund and LUST Trust Fund from the general fund for lost receipts.
Official title: To provide a gasoline tax holiday.
Introduced April 29, 2026 by Josh Harder · Last progress April 29, 2026
Creates a temporary federal gasoline tax holiday that sets the federal excise tax on gasoline to zero for fuel removed, entered, or sold on or after enactment and before January 1, 2027. Requires the Treasury to transfer amounts from the general fund to fully reimburse the Highway Trust Fund and the LUST Trust Fund for revenues lost because of the tax holiday, and directs treatment of those transfers for trust-fund accounting. The bill also expresses a congressional policy that consumers should receive the benefit immediately and authorizes the Treasury to use its authorities to help ensure the tax reduction is passed through to retail prices.