Gas Prices Relief Act of 2026
Summary
What This Bill Does
The Gas Prices Relief Act sets the federal gasoline excise-tax rate to zero for gasoline removed, entered, or sold from enactment through September 30, 2026. During the same window, the Leaking Underground Storage Tank Trust Fund financing rate does not apply to that gasoline.
Treasury must transfer from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund the amounts each would otherwise have received. The transfers are treated as the corresponding excise-tax receipts for trust-fund accounting, preserving trust-fund balances despite the holiday.
The bill states congressional policy that consumers should receive the tax reduction immediately, fuel producers and dealers should reduce prices by the tax savings, and a failure to pass through savings should lead to monetary penalties at least equal to the withheld reduction. Treasury must use all applicable existing authority to ensure consumer receipt of the benefit.
The tax holiday ends before October 1, 2026. The policy statement does not itself create a detailed penalty procedure or guarantee that retail prices fall dollar for dollar, because wholesale prices, supply, demand, and other taxes still affect pump prices.
Who Benefits and How
Drivers and households may receive lower gasoline prices if producers and dealers pass through the federal tax reduction. Trucking, delivery, commuting, and other gasoline-dependent activity may face lower fuel costs. Highway and leaking-tank programs are protected from direct revenue loss through replacement transfers. Fuel dealers temporarily avoid collecting the covered federal rates, although they remain subject to pass-through scrutiny.
Who Bears the Burden and How
The federal general fund absorbs the revenue loss and finances transfers to both trust funds. Taxpayers and alternative federal spending bear that cost. Treasury must calculate transfers, update excise-tax administration, monitor consumer pass-through, and use existing enforcement authority. Fuel producers and dealers face price scrutiny and potential monetary penalties under applicable authority if savings are not passed through.
Key Provisions
- Reduces the federal gasoline excise-tax rate to zero.
- Suspends the leaking-tank financing rate on covered gasoline.
- Limits the holiday to the period before October 1, 2026.
- Requires general-fund replacement transfers to both trust funds.
- Preserves trust-fund accounting treatment for replacement amounts.
- Directs immediate consumer pass-through as congressional policy.
- Requires Treasury to use applicable pass-through authority.
- Provides a policy basis for monetary penalties against withheld savings.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Sets the federal gasoline excise tax and Leaking Underground Storage Tank financing rate to zero from enactment through September 30, 2026, replaces foregone trust-fund receipts with general-fund transfers, and directs Treasury to use existing authority to promote immediate consumer price pass-through.
Key Policy Areas
Gasoline Excise Tax, Motor Fuel Prices, Highway Trust Fund, Leaking Underground Storage Tank Trust Fund, Consumer Tax Pass-Through
Primary Purpose
Sets the federal gasoline excise tax and Leaking Underground Storage Tank financing rate to zero from enactment through September 30, 2026, replaces foregone trust-fund receipts with general-fund transfers, and directs Treasury to use existing authority to promote immediate consumer price pass-through.
Policy Domains
Section 2 temporary 2026 gasoline tax holiday
Identified Gains
- Drivers purchasing gasoline during the holiday
- Households commuting by gasoline vehicle
- Delivery businesses buying gasoline
- Gasoline retailers receiving temporary tax relief
- Highway programs receiving replacement transfers
- Leaking-tank cleanup programs receiving transfers
Identified Costs
- Federal general-fund accounts
- Taxpayers financing trust-fund replacements
- Treasury excise-tax administration staff
- Fuel dealers documenting price pass-through
- Fuel producers facing pass-through scrutiny
- Treasury officials calculating replacement amounts
- Alternative uses of general-fund revenue
Sponsors
Legislative Progress
In CommitteeReferred to the House Committee on Ways and Means.
Introduced in House
Mr. Pappas introduced the following bill; which was referred to …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Alternative uses of general-fund revenue, Federal general-fund accounts, Treasury excise-tax administration staff
Delivery businesses buying gasoline, Highway programs receiving replacement transfers
Fuel dealers documenting price pass-through, Gasoline retailers receiving temporary tax relief
Positive-direction: Gasoline retailers receiving temporary tax relief
Negative-direction: Fuel dealers documenting price pass-through
Households commuting by gasoline vehicle
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "consumer"
- → Consumer purchasing gasoline during the holiday
- "taxpayer"
- → Seller or remover of covered gasoline
- "cleanup_fund"
- → Leaking Underground Storage Tank Trust Fund
- "highway_fund"
- → Highway Trust Fund
- "administrator"
- → Secretary of the Treasury
Note: {'scope_ids': ['gasoline_tax_holiday_2026'], 'description': 'The holiday is temporary, trust funds are made whole from the general fund, and the pass-through language relies on applicable authority rather than creating a complete new penalty code or guaranteeing a precise retail-price reduction.'}
Key Definitions
Terms defined in this bill
The period from enactment through September 30, 2026 when the two covered federal gasoline rates are zero or inapplicable.
Congressional policy favoring immediate price reductions and penalties, implemented through Treasury's otherwise applicable authority.
An amount equal to foregone covered receipts transferred to the relevant trust fund and treated as excise-tax revenue.
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology