Pay Less at the Pump Act of 2026
- Bill Number
- H.R. 7527
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-02-12: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-03-02T16:16:36Z
AI-Generated Summary
Purpose
The Pay Less at the Pump Act of 2026 aims to reduce costs for certain industries and consumers by ending a specific federal tax that funds cleanup of hazardous waste sites. This tax, known as the Hazardous Substance Superfund financing rate, is an excise tax on petroleum products and certain chemicals, which indirectly raises gasoline and other fuel prices.
Key Provisions
- Termination of the Tax Rate: Adds a new subsection to Section 4611 of the Internal Revenue Code (IRC) stating that the Hazardous Substance Superfund financing rate will no longer apply after December 31, 2025.
- Changes to Fund Advances: Amends Section 9507 of the IRC to terminate the authority for government advances to the Superfund (a trust fund for environmental cleanups) as of the date the Act is enacted, replacing a previous deadline of December 31, 2032. Repayments of any existing advances will now occur quarterly from unobligated funds in the Superfund until fully repaid.
- Effective Dates: The tax termination takes effect on January 1, 2026. Changes to advances take effect immediately upon enactment.
Significant Changes to Existing Law
- Previously, the Superfund financing rate was set to continue until at least 2032, providing dedicated revenue for the Superfund program under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA, often called Superfund law).
- This bill accelerates the end of the tax by about six years and shifts repayment of government loans to the fund from a fixed end date to an ongoing quarterly process using available unobligated balances, potentially reducing federal borrowing needs.
Potential Impacts
- On Citizens: Could lower gasoline and fuel prices by eliminating the embedded excise tax (estimated at a few cents per gallon), benefiting drivers and consumers of petroleum-based products.
- On Government Agencies: The Environmental Protection Agency (EPA), which administers Superfund cleanups, may face reduced dedicated funding, possibly requiring reliance on general taxpayer dollars or other sources for ongoing hazardous waste site remediation. This could slow cleanup efforts at contaminated sites.
- On International Relations: Minimal direct impact, though reduced U.S. funding for environmental cleanups might indirectly affect global perceptions of U.S. commitment to hazardous waste management under international environmental agreements.
- Broader Economic Effects: Industries like oil refining and chemical manufacturing may see lower production costs, potentially passing savings to consumers, but environmental groups worry about long-term cleanup delays.
Main Stakeholders Affected
- Industries: Petroleum and chemical producers, who currently pay the excise tax and stand to benefit from its elimination.
- Consumers: Everyday users of gasoline, diesel, and related products, who may experience slight price reductions at fuel pumps.
- Government Entities: The EPA and Treasury Department, as managers of the Superfund and tax collections.
- Environmental Advocates and Communities: Residents near contaminated sites, who rely on Superfund for health and safety protections but may see funding shortfalls.
Notable Legal, Constitutional, or Political Implications
- Legal: Alters tax code provisions without repealing the underlying Superfund program, meaning cleanups continue but funding shifts potentially to appropriations (Congress-approved budgets). This could lead to future lawsuits if funding gaps delay mandated cleanups under CERCLA.
- Constitutional: No direct challenges, as Congress has broad authority over taxation and spending under Article I; however, it raises questions about the stability of dedicated environmental trust funds.
- Political: Reflects debates over tax burdens versus environmental priorities, with supporters viewing it as tax relief and critics as underfunding pollution remediation. Passage would require approval in a divided Congress, influencing energy policy discussions.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (5)
Rep. Hern, Kevin [R-OK-1], Rep. Miller, Carol D. [R-WV-1], Rep. Malliotakis, Nicole [R-NY-11], Rep. Wied, Tony [R-WI-8], Rep. Moran, Nathaniel [R-TX-1]
Recent Actions
- 2026-02-12: Referred to the House Committee on Ways and Means.
- 2026-02-12: Introduced in House
- 2026-02-12: Introduced in House
Bill Versions
- Pay Less at the Pump Act of 2026 — issued 2026-02-12 — PDF (2 pages)