HR8252119th CongressWALLET

Gas Tax Reduction Act

Sponsored By: Representative Kiley, Kevin [I-CA-3]

Introduced

Summary

Ties federal highway funding to state gasoline tax levels. This bill would make federal highway apportionments depend on whether a state’s gas tax reaches a set threshold.

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  • States: States that set their gasoline tax at $0.50 per gallon or higher would have 8% of their annual federal highway apportionments withheld.
  • State highway programs: State transportation agencies would receive smaller apportionment-based payments, reducing the federal share available for highway projects that rely on those apportionments.
  • Timing and duration: Withholding would start in the first fiscal year after enactment in which a state's tax hits $0.50 and would recur each fiscal year while the tax remains at or above that level.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 1 costs, 0 mixed.

8% cut to state highway funds

This bill would make the federal government withhold 8% of the highway money it sends to any State whose gasoline tax is $0.50 per gallon or higher. Withholding would start on the first day of each fiscal year after the first full fiscal year beginning after the date of enactment once a State's gas tax meets that threshold. If enacted, States could lose millions in apportioned highway funds and might cut road projects, raise other taxes, or change their gas tax in response.

Sponsors & CoSponsors

Sponsor

Kiley, Kevin [I-CA-3]

CA • I

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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