Gas Prices Relief Act of 2026
- Bill Number
- H.R. 8572
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-04-29: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-05-20T19:51:09Z
AI-Generated Summary
Purpose
The Gas Prices Relief Act of 2026 (H.R. 8572) aims to temporarily suspend the federal excise tax on gasoline—commonly known as a "gas tax holiday"—to reduce gasoline prices for consumers from the date of enactment until January 1, 2027.
Key Provisions
- Tax Suspension: Sets the gasoline tax rate under Internal Revenue Code section 4081(a)(2)(A)(i) to zero for gasoline removed, entered, or sold during the holiday period. Also suspends the additional Leaking Underground Storage Tank (LUST) Trust Fund financing rate under section 4081(a)(2).
- Revenue Replacement: The Secretary of the Treasury must transfer funds from the general fund of the U.S. Treasury to:
- The Highway Trust Fund (under section 9503(a)).
- The Leaking Underground Storage Tank Trust Fund (under section 9508(a)).
These transfers equal the revenue lost due to the tax suspension.
- Treatment of Transfers:
- LUST Fund transfers are treated as if they were taxes collected from the LUST financing rate.
- Highway Trust Fund transfers are treated as gasoline taxes not tied to the LUST rate.
- Consumer Benefits and Enforcement:
- Declares it congressional policy that consumers receive the full tax savings immediately and that fuel producers/dealers reduce prices accordingly.
- Authorizes the Treasury Secretary to use existing enforcement tools to ensure price reductions reach consumers.
Significant Changes to Existing Law
- Temporarily eliminates the federal gasoline excise tax (normally applied at removal from refineries or import), which funds highway and storage tank programs.
- Introduces general fund transfers to maintain trust fund balances, shifting the cost from fuel taxes to broader taxpayer funds.
- Adds a policy statement and enforcement mechanism to promote pass-through of savings to consumers, which is not standard in existing tax suspension laws.
Potential Impacts
- Consumers: Lower gasoline prices (full 18.3 cents per gallon federal tax savings, if passed through), providing short-term relief amid high fuel costs.
- Government Agencies: Highway Trust Fund and LUST Fund receive steady funding via transfers, avoiding disruptions to road repairs, infrastructure, and tank cleanup programs. Increases pressure on the federal budget through general fund expenditures.
- Fuel Industry: Producers and dealers must adjust pricing; non-compliance risks Treasury enforcement.
- Economy: May boost consumer spending but could strain federal finances if extended or repeated.
Main Stakeholders
- Consumers and Drivers: Primary beneficiaries of lower pump prices.
- Gasoline Producers, Refiners, and Retailers: Affected by tax changes and enforcement on pricing.
- U.S. Treasury Department: Responsible for transfers and enforcement.
- Highway Trust Fund and LUST Trust Fund: Funding maintained but sourced differently.
- States and Local Governments: Indirectly benefit from sustained highway funding for transportation projects.
- Taxpayers: Bear costs via general fund diversions.
Notable Legal, Constitutional, or Political Implications
- Fiscal: Relies on congressional appropriations for general fund transfers; could face budget reconciliation challenges or deficit concerns.
- Enforcement: Treasury's "applicable authorities" (e.g., audits, penalties under tax code) for price pass-through may test limits of administrative power without new specific penalties.
- Precedent: Temporary tax holiday sets model for future energy price relief but highlights trade-offs between short-term consumer aid and long-term trust fund solvency.
- No Constitutional Issues Noted: Aligns with Congress's taxing and spending powers under Article I. Politically, appeals to voters facing fuel costs but may draw criticism for not addressing root causes like supply issues.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Rep. Schrier, Kim [D-WA-8], Rep. Vindman, Eugene Simon [D-VA-7]
Recent Actions
- 2026-04-29: Referred to the House Committee on Ways and Means.
- 2026-04-29: Introduced in House
- 2026-04-29: Introduced in House
Bill Versions
- Gas Prices Relief Act of 2026 — issued 2026-04-29 — PDF (3 pages)