Gas Prices Relief Act of 2026

Legislative bill overview

HR 7919 proposes to amend the Internal Revenue Code to temporarily suspend the federal gasoline tax, which currently stands at 18.4 cents per gallon. The bill aims to reduce fuel costs at the pump by eliminating this federal excise tax for a specified period.

Why is this important

Gasoline taxes fund the Highway Trust Fund, which finances road maintenance, repairs, and infrastructure projects nationwide. A tax holiday would provide immediate relief to consumers and businesses at the pump but would simultaneously reduce revenue for critical infrastructure maintenance and transportation projects that depend on these federal funds.

Potential points of contention

• Infrastructure funding gap: The federal government would need to find alternative revenue sources or reduce highway/transit spending, as the Highway Trust Fund would lose approximately $2-3 billion monthly in revenue depending on duration and fuel prices
• Inflationary concerns: Economists debate whether tax holidays effectively lower prices or if oil companies simply capture the savings as profits rather than passing full benefits to consumers
• Distributional equity: The benefits would disproportionately favor higher-income households that drive more, while middle and lower-income households dependent on public transit would see minimal direct benefit despite potential cuts to transit programs