Summary#
This bill would temporarily set certain federal excise tax rates on gasoline (not aviation gasoline), diesel fuel, and kerosene to zero for fuel removed, entered, or sold on or after enactment and on or before 120 days after enactment. The President can extend the period by up to 90 days. The bill requires the Treasury to transfer money from the Treasury general fund to make whole the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund for the lost tax credits. The bill also states that consumers should receive the reduced prices and gives the Secretary of the Treasury authority to enforce that result. It was introduced May 13, 2026 by Representative Anna Paulina Luna and referred to the House Committee on Ways and Means.
What it means for you#
- If you buy gasoline, diesel, or kerosene during the covered period, the federal excise taxes targeted by this bill would be zeroed out, which could lower pump prices if sellers pass the savings on.
- The bill says sellers and producers should reduce prices and directs the Treasury to use its authority to help ensure consumers get the benefit.
- The tax break would last up to 120 days and could be extended by the President for up to 90 more days.
Expenses#
- The bill requires transfers from the Treasury general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund in amounts equal to the revenue those funds would have lost because of the tax changes.
- The bill treats those transfers as if they were the excise tax receipts for certain tax code purposes.
- No publicly available information on the dollar cost or budget scoring is included in the bill text.
Proponents' View#
- The bill states a policy goal that consumers should immediately receive the benefit of the tax reduction. Supporters would view the bill as a way to reduce fuel prices for families and businesses quickly.
Opponents' View#
- No publicly available information.