Sponsor
Kevin Kiley
Representative · I-CA
Representative · I-CA
The bill preserves federal highway resources and limits federal outlays by penalizing states that raise gasoline taxes, but does so by discouraging state-level revenue increases and reducing infrastructure funding and maintenance in penalized states.
State governments that keep gasoline taxes below $0.50 per gallon avoid an annual 8% reduction in certain federal highway apportionments, preserving state transportation funding.
Federal taxpayers and the federal highway program retain resources because the bill withholds 8% of federal highway apportionments from states that raise gas taxes, potentially reducing federal outlays or allowing funds to be redirected.
States that increase gasoline taxes to $0.50 per gallon or more will lose 8% of certain federal highway formula funds each year, cutting money available for roads and bridges.
Local governments and drivers in affected states will face delayed or reduced road projects and maintenance because smaller federal grants reduce local project funding and upkeep.
State policymakers may be deterred from raising gasoline taxes for legitimate transportation needs, creating long-term funding shortfalls for infrastructure and forcing postponement of repairs or alternative revenue measures.
Based on analysis of 2 sections of legislative text.
Requires DOT to withhold 8% of specified federal highway apportionments from any State whose gasoline tax is $0.50/gal or higher in the triggering period.
Directs the Secretary of Transportation to withhold 8% of certain federal highway apportionments from any State in each fiscal year after the State’s gasoline tax reaches $0.50 per gallon. The withheld share applies to amounts apportioned under the two apportioned highway program paragraphs of 23 U.S.C. §104(b), and the requirement begins for the first fiscal year after the first fiscal year (following enactment) in which the State’s gas tax is at least $0.50/gal.
Official title: To amend title 23, United States Code, to provide for withholding of funds for noncompliance with State gas tax restriction, and for other purposes.
Introduced April 13, 2026 by Kevin Kiley · Last progress April 13, 2026