Gas Prices Relief Act of 2026
Sponsored By: Representative Pappas, Chris [D-NH-1]
Introduced
Summary
temporary federal gasoline tax holiday: This bill would set the federal excise tax rate on gasoline to zero for gasoline removed, entered, or sold before Oct. 1, 2026, and it requires Treasury transfers to protect federal trust funds and enforcement to make sure savings reach drivers.
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- Drivers and households should see lower pump prices while the holiday applies. The bill directs enforcement and allows monetary penalties against dealers who fail to pass along the tax cut.
- Fuel producers and dealers would be expected to lower prices to reflect the zero rate and could face penalties at least equal to the tax reduction if they do not.
- The Treasury would transfer from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund amounts equal to the excise-tax credits lost by those funds, and those transfers are treated as tax receipts for statutory purposes.
*This bill would shift the excise-tax shortfall onto the general fund by requiring replacement transfers to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund.*
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
General fund replaces lost gas tax revenue
This bill would require the Secretary of the Treasury to transfer money from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund. Transfers would equal the reduction in amounts that would have been credited to each Trust Fund because of the gasoline tax reduction. The transfers would be treated for accounting purposes as taxes attributable to those trust fund rates so these programs would not lose the receipts while the tax rate is zero.
Gas sellers must pass tax cut
This bill would state that consumers should immediately receive the benefit of the gasoline tax reduction and would direct fuel producers and dealers to lower pump prices to reflect the tax cut. It would make producers and dealers who fail to reduce prices subject to monetary penalties not less than the amount of the tax reduction that should have been passed on. It would also direct the Secretary of the Treasury to use all applicable authorities to enforce that consumers receive the benefit during the zero-rate period that ends before October 1, 2026.
Temporary federal gas tax cut
This bill would set the federal excise tax rate on gasoline to zero for gasoline removed, entered, or sold on or after the date of enactment and before October 1, 2026. It would also suspend the Leaking Underground Storage Tank financing rate for gasoline covered by the zero rate. If enacted, most people who buy gasoline would see the federal tax component removed from pump prices during that period. The change would be effective on or after the date of enactment and end before October 1, 2026.
Sponsors & CoSponsors
Sponsor
Pappas, Chris [D-NH-1]
NH • D
Cosponsors
Rep. Vindman, Eugene Simon [D-VA-7]
VA • D
Sponsored 5/12/2026
Riley (NY)
NY • D
Sponsored 5/12/2026
Rep. Landsman, Greg [D-OH-1]
OH • D
Sponsored 5/13/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov