Gas Prices Relief Act of 2025
- Bill Number
- H.R. 3768
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-06-05: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-05-20T19:50:59Z
AI-Generated Summary
Purpose
The Gas Prices Relief Act of 2025 aims to temporarily suspend the federal excise tax on gasoline (a tax imposed on the sale or removal of gasoline from refineries or terminals) to reduce gasoline prices for consumers and provide economic relief amid high fuel costs.
Key Provisions
- Tax Suspension Period: From the date of enactment until January 1, 2026, the excise tax rate on gasoline under Section 4081 of the Internal Revenue Code is set to zero. This also suspends the additional financing rate that supports the Leaking Underground Storage Tank (LUST) Trust Fund, which funds cleanup of leaking fuel storage tanks.
- Revenue Replacement: The Secretary of the Treasury must transfer funds from the general federal budget to the Highway Trust Fund (which supports road and bridge maintenance) and the LUST Trust Fund. These transfers equal the revenue lost due to the tax suspension, ensuring the funds remain solvent.
- Treatment of Transfers: The transferred amounts are treated as if they were tax receipts for the purposes of fund operations, with specific rules to allocate them correctly between the Highway Trust Fund and LUST Trust Fund.
- Consumer Benefit Policy: Congress declares it a policy goal that the tax savings immediately lower gasoline prices for consumers. Gasoline producers and dealers are encouraged to pass on the savings. The Secretary of the Treasury can use existing enforcement tools to ensure this happens.
Significant Changes to Existing Law
- This bill temporarily eliminates the 18.4 cents per gallon federal excise tax on gasoline (including 0.1 cents for the LUST fee), which is currently collected under the Internal Revenue Code.
- It introduces a mechanism for direct general fund transfers to replace lost excise tax revenue, preventing shortfalls in the Highway and LUST Trust Funds that rely on these taxes. Without this, the suspension could have depleted these funds, affecting infrastructure and environmental cleanup programs.
Potential Impacts
- On Citizens: Consumers could see immediate reductions in gasoline prices at the pump (potentially up to 18.4 cents per gallon, though market factors may influence the exact savings), easing household budgets and transportation costs, especially for low-income drivers and rural communities.
- On Government Agencies: The Treasury Department gains enforcement authority to monitor price pass-through but faces increased administrative burdens. The Highway Trust Fund and LUST Trust Fund are protected from revenue loss, maintaining funding for highways, bridges, and underground tank cleanups without borrowing or cuts elsewhere.
- On International Relations: Minimal direct impact, though lower U.S. fuel prices could indirectly affect global oil demand and energy markets.
- Broader Economic Effects: Short-term boost to consumer spending and the economy, but it shifts the tax burden to the general federal budget, potentially increasing the deficit unless offset by other revenues.
Main Stakeholders Affected
- Consumers and Drivers: Primary beneficiaries through lower fuel costs.
- Gasoline Producers, Refiners, and Retailers: Face reduced tax revenue but must pass savings to consumers; subject to federal oversight to prevent price gouging.
- Federal Government and Taxpayers: The general fund covers the lost revenue (estimated at billions over the period), affecting overall federal budgeting.
- Transportation and Infrastructure Agencies: Benefit from sustained Highway Trust Fund support for road projects.
- Environmental Groups: Indirectly impacted via continued LUST Trust Fund financing for pollution cleanup.
Notable Legal, Constitutional, or Political Implications
- Legal: Relies on Congress's taxing and spending powers under Article I of the U.S. Constitution. The enforcement provision strengthens the Treasury's role in consumer protection without creating new penalties, but it could lead to legal challenges if producers contest pass-through requirements.
- Constitutional: No major issues, as it amends tax law through standard legislative process and avoids infringing on states' rights (though states may adjust their own fuel taxes in response).
- Political: Offers bipartisan appeal as short-term relief amid inflation concerns, but critics may highlight the fiscal cost (adding to the national debt) and temporary nature, potentially setting precedent for future tax holidays. It was introduced by bipartisan sponsors (Democrats from California) and referred to the House Ways and Means Committee for review.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2025-06-05: Referred to the House Committee on Ways and Means.
- 2025-06-05: Introduced in House
- 2025-06-05: Introduced in House
Bill Versions
- Gas Prices Relief Act of 2025 — issued 2025-06-05 — PDF (3 pages)