Gas Prices Relief Act of 2026

Bill Summary: Gas Prices Relief Act of 2026 (H.R. 7919)

Overview

The Gas Prices Relief Act of 2026 is a legislative proposal designed to provide immediate financial relief to consumers by temporarily eliminating federal taxes on gasoline. The bill seeks to lower the cost of fuel at the pump by suspending the federal excise tax and the Leaking Underground Storage Tank (LUST) Trust Fund financing rate for a limited window of time.

Key Provisions

1. Federal Gasoline Tax Holiday

The bill mandates a "tax holiday" for gasoline. For all gasoline removed, entered, or sold from the date the Act becomes law until October 1, 2026, the following changes apply:
* Tax Rate Reduction: The federal tax rate under section 4081(a)(2)(A)(i) of the Internal Revenue Code of 1986 is reduced to zero.
* LUST Fund Suspension: The financing rate for the Leaking Underground Storage Tank Trust Fund is suspended for applicable gasoline sales.

2. Trust Fund Maintenance

To ensure that vital infrastructure and environmental projects are not defunded by the loss of tax revenue, the bill requires the Secretary of the Treasury to transfer funds from the general government fund to replace the missing revenue. These transfers will go to:
* The Highway Trust Fund
* The Leaking Underground Storage Tank Trust Fund

3. Consumer Protection and Enforcement

The bill explicitly states that the benefit of this tax reduction must be passed directly to the consumer.
* Mandate for Producers/Dealers: Fuel producers and dealers are expected to reduce pump prices to reflect the tax savings.
* Penalties: Dealers who fail to lower prices may face monetary penalties. The bill specifies that these penalties must be at least equal to the amount of the tax reduction that should have been passed on to the consumer.
* Treasury Oversight: The Secretary of the Treasury is authorized to use all applicable powers to enforce these price reductions.

Who is Affected?

• Consumers: Expected to see a decrease in the retail price of gasoline.
• Fuel Producers and Dealers: Must adjust pricing structures and face potential penalties if they do not pass the tax savings to consumers.
• Federal Government: The Treasury must manage the redistribution of funds from the general fund to specific trust funds to maintain existing spending levels for highways and storage tank cleanup.

Procedural Status

• Introduced: March 12, 2026.
• Current Status: Referred to the House Committee on Ways and Means.
• Sunset Date: The tax relief expires on October 1, 2026.