Gas Prices Relief Act of 2026

Bill Number: H.R. 7919
Origin Chamber: House
Congress: 119th Congress, Session 2
Policy Area: Taxation
Status: Introduced
Latest Action: 2026-03-12: Referred to the House Committee on Ways and Means.
Last Updated: 2026-05-20T19:51:02Z

AI-Generated Summary

Purpose

The Gas Prices Relief Act of 2026 (H.R. 7919) aims to temporarily suspend federal excise taxes on gasoline (a tax paid when gasoline is removed from refineries, imported, or sold) to lower prices for consumers during a roughly 6-month "tax holiday" starting from the date the law is enacted until October 1, 2026.

Key Provisions

Tax Suspension: Sets the gasoline excise tax rate under Internal Revenue Code section 4081(a)(2)(A)(i) to zero and eliminates the additional Leaking Underground Storage Tank (LUST) Trust Fund financing rate under section 4081(a)(2)(B) for qualifying gasoline.
Trust Fund Replenishment: The Secretary of the Treasury must transfer money from the general fund (the U.S. government's main spending account) to the Highway Trust Fund (funds road and highway projects) and LUST Trust Fund (funds cleanup of leaking underground fuel tanks) to cover the lost tax revenue.
Pass-Through Requirement:
Congress declares it policy that fuel producers and dealers must pass the full tax savings to consumers by lowering prices.
Dealers failing to do so face monetary penalties at least equal to the tax savings not passed on.
Treasury must enforce this using all available tools.

Significant Changes to Existing Law

Temporarily eliminates the 18.4 cents per gallon gasoline excise tax (standard rate: 18.3 cents to Highway Trust Fund + 0.1 cents to LUST Fund), which is normally collected on gasoline sales or imports.
Introduces general fund transfers to fully backfill trust funds, ensuring they are not shortchanged.
Adds enforcement mechanisms and penalties to mandate price reductions, which is a new consumer-protection policy not previously tied to this tax.

Potential Impacts

Consumers: Could lower gasoline prices by about 18.4 cents per gallon at the pump, providing direct relief amid high fuel costs.
Government Agencies: Increases Treasury's administrative workload for transfers and enforcement; shifts revenue burden to general fund, potentially adding billions to the federal deficit (exact amount depends on gasoline volume).
Fuel Industry: Producers and dealers must adjust prices downward or face penalties, possibly squeezing short-term profits.
Infrastructure: Highway and LUST programs continue uninterrupted due to backfill, avoiding cuts to road repairs or tank cleanups.
Economy: May boost consumer spending but could signal fiscal policy favoring short-term relief over long-term revenue stability.

Main Stakeholders

Consumers and Drivers: Primary beneficiaries of lower gas prices.
Gasoline Producers, Refiners, and Retailers: Must pass on savings and comply with enforcement.
U.S. Treasury Department: Handles transfers, monitoring, and penalties.
Highway Trust Fund and LUST Trust Fund: Protected from revenue loss but reliant on general fund.
States and Local Governments: Indirectly benefit from sustained highway funding; some states have their own gas taxes unaffected.
Transportation Sector: Lower fuel costs could aid trucking, airlines, and commuters.

Notable Legal, Constitutional, or Political Implications

Legal: Introduces penalty authority for non-pass-through of savings, potentially leading to disputes over enforcement and what constitutes "failure to reduce prices." Relies on Treasury's existing powers under the tax code.
Constitutional: No major issues; Congress has broad taxing and spending authority under Article I.
Political/Fiscal: Temporary measure highlights debate over using deficits for relief; could set precedent for future tax holidays, affecting long-term trust fund solvency debates. Neutral on partisan lines per bill text, introduced by Rep. Pappas (D-NH) and referred to Ways and Means Committee.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Pappas, Chris [D-NH-1]

Cosponsors (4)

Rep. Vindman, Eugene Simon [D-VA-7], Rep. Riley, Josh [D-NY-19], Rep. Landsman, Greg [D-OH-1], Rep. Levin, Mike [D-CA-49]