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119-hr-8772119th CongressWALLET

Diesel Prices Relief Act of 2026

Sponsored By: Representative Vindman, Eugene Simon [D-VA-7]

Introduced

Summary

A temporary diesel fuel tax holiday for 2026. This bill would set the federal excise tax on diesel (excluding kerosene) to zero for diesel removed, entered, or sold from enactment through December 31, 2026.

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  • Drivers and businesses that buy diesel would see lower per-gallon federal taxes at the pump, and the bill directs producers and dealers to pass savings to consumers immediately.
  • Fuel producers and dealers are expected to reduce retail diesel prices and face enforcement authority given to the Secretary of the Treasury to ensure consumers receive the benefit.
  • The Highway Trust Fund and the Leaking Underground Storage Tank (LUST) Trust Fund are preserved by requiring transfers from the general fund equal to the lost excise-tax credits, with rules specifying how those transfers are treated for accounting.

*This bill would replace diesel excise receipts with transfers from the general fund to cover Highway Trust Fund and LUST losses, shifting the cost onto the federal budget.*

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Ensure diesel tax savings reach consumers

If enacted, the bill would state that consumers should immediately receive the benefit of the diesel tax reduction and that fuel producers and dealers should lower prices to reflect it. The bill would authorize the Treasury Secretary (or a delegate) to use all applicable authorities to try to ensure those savings reach consumers. This policy and enforcement authority would apply from enactment through January 1, 2027.

Temporary diesel tax cut and offsets

If enacted, the bill would set the federal excise tax on diesel (other than kerosene) to zero for diesel removed, entered, or sold on or after the date of enactment and before January 1, 2027. The bill would also suspend the LUST financing charge for that diesel during the same period. To replace lost receipts, the Treasury would transfer money from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund equal to the amounts that would have been credited. Those transfers would be treated for accounting as taxes received under the diesel excise rules with specified attribution for each trust fund.

Sponsors & CoSponsors

Sponsor

Vindman, Eugene Simon [D-VA-7]

VA • D

Cosponsors

  • Rep. Davis, Donald G. [D-NC-1]

    NC • D

    Sponsored 5/12/2026

Roll Call Votes

No roll call votes available for this bill.

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