Gas Tax Reduction Act
- Bill Number
- H.R. 8252
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Transportation and Public Works
- Status
- Introduced
- Latest Action
- 2026-04-13: Referred to the House Committee on Transportation and Infrastructure.
- Last Updated
- 2026-04-21T17:57:05Z
AI-Generated Summary
Summary of H.R. 8252 - Gas Tax Reduction Act
Purpose
The bill aims to pressure states to keep their gasoline taxes (state-imposed taxes on gasoline sales) below $0.50 per gallon by withholding a portion of federal highway funding from non-compliant states.
Key Provisions
- Adds a new section (Sec. 180) to Chapter 1 of title 23, United States Code (the federal law governing highways).
- Requires the Secretary of Transportation to withhold 8% of certain federal highway funds apportioned to a state (allocated based on formulas in section 104(b)(1) and (2), which cover core highway programs like the National Highway Performance Program and Surface Transportation Block Grant Program).
- Withholding applies starting on the first day of each fiscal year (October 1 to September 30) after the first full fiscal year following the bill's enactment, but only if the state's gasoline tax equals or exceeds $0.50 per gallon at that time.
- Includes a clerical update to the table of contents for the chapter.
Significant Changes to Existing Law
- Introduces a new penalty mechanism in federal highway law, tying federal funding directly to state gasoline tax levels—previously, no such direct link existed for gas taxes specifically.
- Targets only gasoline taxes (not diesel or other fuels) and applies to specific apportionment categories under section 104(b).
Potential Impacts
- States: Could reduce federal highway funding by 8% for affected programs, potentially straining road maintenance, construction, and safety projects in states with high gas taxes (e.g., California, Illinois, Pennsylvania, where rates often exceed $0.50/gallon including fees).
- Citizens: Might indirectly lower gasoline prices if states reduce taxes to avoid penalties, but could lead to less federal aid for infrastructure, affecting travel, commuting, and local economies reliant on highways.
- Government agencies: Increases administrative duties for the U.S. Department of Transportation to monitor state tax rates annually and adjust fund apportionments.
- No direct impact on international relations.
Main Stakeholders
- State governments: Primary targets, especially those with gasoline taxes at or above $0.50/gallon.
- U.S. Department of Transportation: Responsible for enforcement and fund withholding.
- Drivers and motorists: Benefit from potential tax reductions but may face infrastructure funding shortfalls.
- Highway construction and maintenance industries: Could see reduced federal contracts in penalized states.
Notable Legal, Constitutional, or Political Implications
- Legal: Relies on Congress's spending power (authority to attach conditions to federal funds), but could face challenges under the 10th Amendment (reserving powers to states), as it influences state tax policy—similar to past cases like highway funding conditions on drinking age or speed limits.
- Constitutional: May raise questions about federal overreach into state fiscal decisions, though upheld precedents exist for conditional grants.
- Political: Encourages states to lower gas taxes, potentially appealing to fiscal conservatives; could spark debates on federalism (balance of power between federal and state governments) and infrastructure priorities. No enforcement mechanism for tax increases mid-year is specified.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-04-13: Referred to the House Committee on Transportation and Infrastructure.
- 2026-04-13: Introduced in House
- 2026-04-13: Introduced in House
Bill Versions
- Gas Tax Reduction Act — issued 2026-04-13 — PDF (2 pages)