Sponsors (3)
The bill temporarily reduces gasoline costs for drivers while instructing Treasury to backfill transportation and cleanup funds from the general fund — trading short‑term consumer relief for higher federal outlays, possible limits on how much savings reach consumers, and risks to long‑term, stable infrastructure funding.
Drivers and households (including middle‑class and low‑income families) pay lower at‑the‑pump prices during the tax holiday because the federal gasoline excise tax is set to zero and Treasury is directed to use its authorities to help ensure price reductions are passed to consumers.
Local governments and transportation systems retain federal highway and transit funding because Treasury must replace the excise receipts lost to the Highway Trust Fund, helping preserve infrastructure project funding during the holiday.
Local governments keep funding for leaking underground storage tank (LUST) cleanups because Treasury must replace the lost LUST financing receipts, maintaining environmental remediation programs.
All taxpayers face higher federal outlays (and potential upward pressure on the deficit or crowding out of other spending) because lost excise receipts are replaced from the general fund.
Middle‑class and low‑income drivers may not get the full benefit because fuel producers or dealers might not lower retail prices fully despite the policy statement and Treasury direction.
Local governments and transportation programs could face administrative complexity and timing gaps because replacing excise receipts with general fund transfers adds nonstandard funding flows.
Based on analysis of 2 sections of legislative text.
Temporarily eliminates the federal gasoline excise tax and LUST charge through Dec 31, 2026, with Treasury required to backfill lost Highway Trust Fund and LUST receipts from the general fund.
Sets the federal gasoline excise tax rate to zero for gasoline removed, entered, or sold from enactment through December 31, 2026, and suspends the related LUST financing charge for that period. Directs the Treasury to transfer to the Highway Trust Fund and the LUST Trust Fund amounts equal to the lost excise receipts and authorizes the Treasury Secretary to act to help ensure the tax cut is passed through to consumers.
Official title: To provide a gasoline tax holiday.
Introduced April 29, 2026 by Josh Harder · Last progress April 29, 2026