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119-s-4485119th CongressWALLET

Gas Tax Suspension Act

Sponsored By: Senator Hawley, Josh [R-MO]

Introduced

Summary

Temporary suspension of federal fuel excise taxes would create a short 2026 tax holiday on gasoline and diesel to lower the federal per-gallon tax at the pump. Those revenue losses would be made up by transfers from the general fund to the Highway Trust Fund and to the Leaking Underground Storage Tank Trust Fund, and the suspension would last 90 days or up to 180 days at the President's discretion.

Show full summary
  • Families and drivers: Drivers would pay no federal excise tax on gasoline and diesel removed, entered, or sold during the holiday, reducing the federal tax component of pump prices for a 90- or 180-day window.
  • Highway and environmental programs: The Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund would receive transfers equal to the lost excise receipts so their funding is preserved.
  • Federal finances and accounting: The transfers come from the general fund and Treasury would treat them as tax receipts under the code, shifting the cost onto federal general finances rather than the excise system.

*Would require equal transfers from the general fund to replace lost excise receipts, preserving trust fund receipts while increasing general fund outlays.*

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Bill Overview

Analyzed Economic Effects

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

Treasury backfill for highway and tank funds

This bill would require the Treasury to transfer money from the general fund to two trust funds to replace the fuel tax revenue lost during the pause. Transfers would match the amounts that would have been credited to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund. The transfers would be treated in Treasury accounting to preserve the trust funds' receipts while the excise tax suspension is in effect.

Temporary pause on federal gas tax

This bill would set federal excise tax rates on taxable gasoline and diesel to zero for fuel removed, entered, or sold starting on enactment and ending on the applicable date. The applicable date would be 90 days after enactment, or 180 days if the President alone decides economic conditions warrant an extension. You would pay no federal fuel excise tax at the pump for taxable fuel bought during that pause. The fee that finances the Leaking Underground Storage Tank Trust Fund would also not apply to fuel covered by the pause.

Sponsors & CoSponsors

Sponsor

Hawley, Josh [R-MO]

MO • R

Cosponsors

  • Sen. Moody, Ashley [R-FL]

    FL • R

    Sponsored 5/14/2026

Roll Call Votes

No roll call votes available for this bill.

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