Gas Prices Relief Act of 2026

The bill would create a temporary "gasoline tax holiday" in 2026. For gasoline that is removed, entered, or sold on or after the date the bill becomes law and before October 1, 2026, the usual federal tax on gasoline under Internal Revenue Code section 4081 would be set to zero. During this same period, the extra tax rate that goes into the Leaking Underground Storage Tank Trust Fund would also not apply to that gasoline. To keep road and environmental funds from losing money, the bill requires the Secretary of the Treasury to move money from the general fund of the U.S. Treasury into two existing funds: the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund. The amount moved into each fund must match the amount that would have been credited to that fund if the gasoline taxes had not been paused. The bill also says these transfers must be treated, for legal and accounting purposes, as if they were gasoline taxes originally paid into those funds. The bill states that it is the policy of Congress that consumers should immediately see lower prices that reflect the tax cut. It says that fuel producers and other fuel dealers should take actions needed to lower transportation fuel prices by the amount of the tax reduction. It further states that producers and dealers who do not pass on the savings should face monetary penalties at least as large as the tax reduction that should have been passed through. Finally, it directs the Secretary of the Treasury to use all applicable legal powers to try to make sure consumers receive the benefit of the tax cut.

This bill could affect how much drivers pay for gasoline during the tax holiday period. If the full tax cut is passed through, people and businesses that buy gasoline could see lower fuel costs for several months. However, the exact size of any price change and how long it lasts would depend on market conditions and how fuel sellers respond, which the bill does not define in detail. The bill also matters for federal funding of highways and cleanup of leaking underground fuel tanks. By replacing lost gasoline tax revenue with money from the general fund, it aims to keep these programs funded at current levels while the tax is paused. This means any budget impact would shift from the trust funds to the broader federal budget, though the bill does not specify offsets or broader budget changes. The enforcement and penalty language reflects a concern about whether tax cuts at the wholesale stage actually reach retail consumers. The bill directs the Treasury Department to use its existing powers to encourage or require pass-through of savings, but it does not spell out new, detailed enforcement tools in the text provided, so how this would work in practice is not fully clear.