Sponsors (2)
The bill provides near-term relief at the pump and preserves transportation and cleanup funds by replacing excise receipts with general fund transfers, at the cost of higher federal outlays, a weakened user-fee funding link for highways, and added compliance/enforcement risks.
Most drivers and commuters pay lower gasoline prices through Sept 30, 2026, and the law requires producers/dealers to pass the tax cut along (with penalties for price-gouging), protecting consumers from higher pump prices.
The Highway Trust Fund continues receiving expected revenues because Treasury must transfer amounts from the general fund equal to the lost excise tax receipts, preserving planned transportation spending.
The Leaking Underground Storage Tank (LUST) Trust Fund is maintained because Treasury must replace lost LUST financing receipts from the general fund, preserving cleanup and related environmental programs.
Federal general fund outlays increase because Treasury must replace lost excise receipts, which may raise deficits or crowd out other spending priorities paid from the general fund.
Replacing user-fee financing with general fund transfers weakens the link between gasoline consumption and Highway Trust Fund revenue, creating risks for the long-term stability of transportation funding.
Producers, distributors, and dealers face compliance risk and potential large monetary penalties if pricing adjustments are mishandled, imposing costs and uncertainty on fuel businesses (including small owners).
Based on analysis of 4 sections of legislative text.
Temporarily sets the federal gasoline excise tax and LUST surcharge to zero through Sept 30, 2026, and directs Treasury to replace lost trust-fund receipts while enforcing price pass-through to consumers.
Introduced March 9, 2026 by Mark Edward Kelly · Last progress March 9, 2026
Suspends the federal excise tax on gasoline and the LUST (Leaking Underground Storage Tank) financing surcharge for gasoline sold or removed on or after enactment and before October 1, 2026, effectively setting those federal rates to zero during that period. The Treasury must transfer amounts from the general fund to the Highway Trust Fund and the LUST Trust Fund equal to the lost receipts so those trust funds receive the same dollars they would have without the suspension. The bill also directs that consumers immediately receive the benefit through lower pump prices, requires producers and dealers to reduce retail prices accordingly, authorizes monetary penalties for sellers who do not pass savings to consumers, and tasks the Treasury with enforcing pass-through.