Pay Less at the Pump Act of 2026
- Bill Number
- S. 3863
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-02-12: Read twice and referred to the Committee on Finance. (text: CR S611)
- Last Updated
- 2026-03-05T00:30:27Z
AI-Generated Summary
Purpose
The "Pay Less at the Pump Act of 2026" aims to eliminate a specific federal tax on certain chemicals and petroleum products, known as the Hazardous Substance Superfund financing rate. This tax helps fund the Superfund program, which cleans up hazardous waste sites. By ending the tax, the bill seeks to lower costs for industries and consumers, particularly at gasoline pumps.
Key Provisions
- Termination of the Tax Rate: Adds a new subsection to Section 4611 of the Internal Revenue Code stating that the Hazardous Substance Superfund financing rate (an excise tax on taxable substances like petroleum) will no longer apply after December 31, 2025.
- Changes to Fund Advances: Amends Section 9507(d)(3)(B) of the Internal Revenue Code to end the authority for the U.S. Treasury to make advances (loans) to the Superfund after the date of enactment. Instead, any outstanding advances must be repaid quarterly from unobligated (unused) funds in the Superfund until fully repaid.
- Effective Dates:
- The tax termination takes effect on January 1, 2026.
- Changes to advances take effect on the date the bill is enacted into law.
Significant Changes to Existing Law
- Previously, the Superfund financing rate was set to continue indefinitely under the Internal Revenue Code, supporting ongoing funding for hazardous waste cleanup.
- The bill accelerates the end of this tax (originally extended through 2032 in prior law) and shifts repayment of government advances from a fixed deadline to an ongoing quarterly process using available Superfund balances, potentially reducing federal borrowing for the program.
Potential Impacts
- On Citizens: Could lower gasoline and other fuel prices by removing the tax (about 9.7 cents per gallon on petroleum), benefiting drivers and consumers, but might indirectly affect environmental cleanup efforts if alternative funding is not secured.
- On Government Agencies: The Environmental Protection Agency (EPA), which administers the Superfund, may face reduced revenue for site cleanups, potentially slowing remediation of hazardous waste sites and increasing reliance on general taxpayer funds or other sources.
- On International Relations: Minimal direct impact, though it could influence U.S. environmental policy perceptions abroad if cleanup delays occur.
Main Stakeholders Affected
- Industries: Oil, chemical, and manufacturing sectors that produce or use taxable substances, who would see reduced operational costs.
- Consumers: Everyday Americans, especially those reliant on affordable fuel, who may benefit from lower prices at the pump.
- Government Entities: EPA and Treasury Department, as they manage Superfund operations and financing.
- Taxpayers: Potentially burdened if Superfund shortfalls lead to increased general taxes or budget reallocations for cleanups.
Notable Legal, Constitutional, or Political Implications
- Legal: Relies on Congress's authority under the Constitution to impose and repeal taxes (Article I, Section 8), with no apparent conflicts; however, it could prompt legal challenges if it leads to underfunding of mandated environmental programs under laws like the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA, or Superfund law).
- Constitutional: No direct issues, as it modifies tax code without infringing on other branches or rights.
- Political: Introduced by a group of Republican senators, it reflects debates over tax relief versus environmental funding priorities; passage could signal a shift toward deregulation but might face opposition from environmental advocates concerned about cleanup delays.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (9)
Sen. Lankford, James [R-OK], Sen. Blackburn, Marsha [R-TN], Sen. Cornyn, John [R-TX], Sen. Kennedy, John [R-LA], Sen. Hoeven, John [R-ND], Sen. Risch, James E. [R-ID], Sen. Lummis, Cynthia M. [R-WY], Sen. Cotton, Tom [R-AR], Sen. Lee, Mike [R-UT]
Recent Actions
- 2026-02-12: Read twice and referred to the Committee on Finance. (text: CR S611)
- 2026-02-12: Introduced in Senate
Bill Versions
- Pay Less at the Pump Act of 2026 — issued 2026-02-12 — PDF (2 pages)